Can You Get Life Insurance  If You're Unemployed?

By: Fiona Caderma

Now is the perfect time to go out and buy life insurance- especially with everything that's happening around. Of course, nobody wants to be left out when it comes to securing their family’s financial future. With life insurance, buying sooner is always better. 

If you’re still employed, one of the reasons to have your own policy is you won’t lose your life insurance if you lose your job. But what about those who are unemployed right now- can they afford this expense without any income coming in?

If you recently lost your job or you are unemployed for quite some time now, you may be wondering if you can have a life insurance policy that is enough to protect your family. So in this article, we’ll be talking about getting life insurance for unemployed individuals, how insurers treat unemployment, and what you can do to get an affordable life insurance policy.

Can I Get Life Insurance Even If I Am Unemployed?

You can still get life insurance even if you’re unemployed. The length of your unemployment and current level of income will determine whether or not your insurer approves you for a policy. Insurers also look closely at the reason for unemployment as this will determine the coverage you can qualify for.

 Here are some of the types of unemployment and how they are evaluated when applying for life insurance:

A. Recently Unemployed

If you’ve been unemployed for less than six months, you should be able to find coverage fairly easily. There are some things that underwriters look at though like your previous income and occupation as well as how long you have been out of work, or if you are currently looking for a job. These factors are evaluated to determine how much coverage you can qualify for and how much your monthly premium will be.

However, if you already have life insurance in place before becoming unemployed, you will retain the same life insurance coverage.

B. Non-Working Spouse

To qualify for life insurance as a non-working spouse, your partner will need to have an income and the insurer must look at how much they make. The amount of coverage approved may vary depending on the insurance companies.

C. When You’re Disabled

If you have a disability that is related to your health condition, it can be difficult for insurance companies to justify giving you coverage. This is because prior health conditions are factors that affect qualification for an insurance policy. 

However, there are some alternatives if you can’t qualify for life insurance due to disability. You may opt for Guaranteed Life Insurance- a policy for ages 50-80 yrs. old, as this does not require a medical exam and people with serious health conditions can apply. The death benefit is lower and the premiums are relatively higher. To have a better option, you can always discuss this with your insurance underwriter to see if you can qualify for coverage that fits your budget.

D. College Or Graduate Students

For students who are unemployed because they’re studying full time, the insurer will look at your projected income. Depending on your age and marital status, it might offer coverage based on a parent’s or spouse’s life insurance policy.

Is It Possible To Get Affordable Life Insurance When Unemployed?

In the event that you are unable to bring in an income, life insurance may seem like a luxury. But, it doesn’t mean you can’t qualify for an affordable policy that is enough to give your family financial protection. Here are some of the things you can do to get an affordable life insurance policy even when you’re unemployed: 

A. Term Insurance

Term insurance offers protection for a limited period of time but the death benefit is higher and the premiums cost up 10x less than permanent life insurance. This is a good choice if you have a limited budget but need protection in place.

B. Speak With An Insurance Specialist

Insurance companies treat each unemployment situation differently. While getting quotes online is a way to find affordable coverage, you need to also make sure that you are giving away your information to someone legitimate to avoid getting random calls and solicitations. Speaking with an insurance specialist you can trust is the safest way to go. Your insurance specialist will not only help you find the coverage that fits your current situation and your budget- but will also help you throughout your application process.

This will save you time and money and ensure you get the most affordable and quality life insurance.

The Takeaway

One of the most frustrating and difficult things about unemployment is that it can be hard to get life insurance. However, you can still buy life insurance if you’re unemployed. The amount that is granted will be based on your previous or projected income, how much coverage your spouse has as well as your current health situation. The key is to apply sooner rather than later because insurers look at recently unemployed applicants more favorably. 

You can also get affordable life insurance if you try to get term insurance which costs lower than any other life insurance policies and speak with an insurance agent to get the best insurance options for your situation.

If you need help with your insurance questions, feel free to contact us at 763.290.1267. Life in Store is represented by a licensed underwriter to help you find the right insurance solutions for you and your family. You can also get a FREE quote from us by filling out our term insurance form below.