Can you get life insurance when you’re unemployed?

A woman stresses over how she is going to find affordable life insurance after losing her job. SelectQuote can help her

COVID-19 has brought time of uncertainty, job loss and financial insecurity that has left many families scrambling to have a form of financial protection. You might be wondering if it’s worth it or even possible to get a life insurance policy when you’re unemployed. The simple answer is yes. Life insurance is an important investment to make if you have people depending on you financially. And with life insurance rates increasing as you age, purchasing a life insurance policy isn’t something you want to put off—even if you’re unemployed. This article has more information on life insurance for unemployed individuals and can help you decide if it’s right for you and next steps to take.  

The Impact of COVID-19 Pandemic on Life Insurance

The life insurance industry has remained mostly unbothered during COVID-19, with the pandemic emphasizing the importance of protecting your family with life insurance. If you have a group life insurance policy through your employer, you may be wondering what happens to that policy if you lose your job—or if it’s truly enough coverage. This shows the importance of understanding your life insurance plan and its ability to continue coverage.

When it comes to applying for or reviewing your existing life insurance policy, the process has remained mostly unchanged. Keep in mind that if you’ve been directly impacted by the coronavirus or recently traveled to a region with a high infection rate, it may take longer than normal to get approved for life insurance coverage. 

How To Get Life Insurance If You Don’t Have a Job

As an unemployed applicant, you’ll probably be asked additional questions about your household income, previous jobs and how much, if any, life insurance coverage your spouse or partner has. Buying life insurance can seem complicated, especially with the uncertainty of unemployment. At SelectQuote, we can simplify the shopping process and answer any questions you have, match you with the life insurance company suited for your situation and find opportunities to try and save you money. 

How much life insurance coverage do I need if I’m unemployed?

The amount of life insurance you need should be based on your current and future expenses, which can sometimes be difficult to determine. If you did recently lose your job, you’ll want to take the temporary loss of income into consideration when figuring out the amount of life insurance coverage you need. While you can always increase your coverage in the future, paying for extra probably isn’t the best use of your money at that time. Our life insurance calculator can help you get started on finding the right amount of coverage for you. 

Is it harder to get life insurance if I’m unemployed?

The life insurance application process might include some additional questions if you’re unemployed, but that doesn’t mean it should be more difficult. During the underwriting process, the underwriter will confirm that your household has the funds to pay the premiums associated with your policy. They will also determine if the amount of coverage you requested is appropriate based on your income history and earning potential. In some cases, unemployed applicants can request the same amount of coverage as their income-earning spouse, while in other cases, unemployed applicants may be limited to a specific amount of coverage. 

What happens if I can’t maintain my life insurance policy premiums?

If you can no longer pay the premium on your life insurance policy, it’s important to be upfront and honest with your life insurance carrier. Due to the global pandemic, many life insurance companies are offering a grace period or special assistance to help those experiencing a temporary loss of employment or income. 

SelectQuote Can Help You Find the Best Life Insurance Policy For You

Shopping for life insurance can be complicated enough, especially during a time of uncertainty. Our licensed insurance agents are here to make it as easy as possible for you. We can help you understand your life insurance coverage options while unemployed, answer any questions you have and find opportunities to potentially save you money.

We do the shopping. You do the saving.