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How To Navigate Life Insurance Policies while Unemployed

Friday, May 21, 2021

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Losing a job is never easy. COVID-19 has changed so many factors in our day-to-day living, and job security is called into question now more than ever. Financial stress is at the top of the list with job-loss, and the answer to the question “Does life insurance cover unemployment” is no. If you had life insurance provided by your employer, you need to make quick decisions about getting personal coverage.

Can You Get Life Insurance If You Are Unemployed?

When you type in a search for “life insurance unemployed,” the results can be daunting. Dig deep enough, and the outlook is more positive. Generally speaking, you can qualify for a personal life insurance policy if you are unemployed. You can take steps to ease the process to allow for a positive outcome when applying for coverage. Suppose you are recently unemployed due to a lay-off or job loss. In that case, it is best to act quickly to apply for a personal policy. The longer you remain unemployed, the more difficult it is to qualify for life insurance. There is some good news in these difficult times: Insurance companies have adapted their criteria because of the effect the coronavirus has had on the economy.

When Do You Need Life Insurance?

Life Insurance is necessary when you have responsibilities to others. If you own a home, have a spouse or significant other, or have children, you need life insurance. Without the buffer of life insurance, the people you love and provide for are left in dire financial circumstances if something happens to you and you haven’t built up your estate. Providing for future education expenses, paying the mortgage, or replacing your lost income are the reasons for purchasing a policy. The best time to qualify for life insurance is when you are young because premiums will be lower.

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Life Insurance Requirements

 If we have learned nothing else from COVID-19, the unexpected can happen in an instant. Though you may have coverage through a company policy, you may want to consider additional personal insurance. Unemployment will not affect your individual policy should you lose your job, as long as you pay your monthly premiums.

The list for how to obtain life insurance is relatively easy: Have a record of your assets, your salary, and your employment history ready to share with your insurance company. If you are concerned about the cost of insurance, be sure to discuss your coverage limits with your agent. Make sure you are not overinsured and consider reducing some of your coverage if you experience job insecurity.

Can You Be Denied Life Insurance?

There are circumstances where an insurance company could deny coverage. Typical risk factors like long-term unemployment and bankruptcies can cause issues, but there are always options for protection. Your Independent Insurance Associates agent will be happy to help you find a solution that offers protection for your loved ones. The current environment for workplace uncertainty is something we are learning to accept. Now more than ever, the ability to adapt and prepare for financial shock is essential.

Your personal agent at Independent Insurance Associates is ready to help you navigate the unpredictable times ahead. Contact us today to learn about your life insurance options and help you find some peace of mind for yourself and your loved ones.