Life Highlights
By Joel Zimmerman

Tips for Getting Life Insurance if You’re Unemployed

The buzz on the criticality of life insurance is going around all the time, but is it only for the ones who are gainfully employed? Don’t unemployed people qualify for life insurance too?

Untoward incidents do not strike with the qualifying criteria of employment; tragedy can strike anyone, anywhere with no discrimination. And the unemployed are just as worried about protecting the future of their loved ones as anyone else. The key question here is, does the life insurance for unemployed get approved?

However, the answer to this is not straightforward. The approval or rejection of a life insurance policy for the unemployed depends on a variety of factors. An experienced financial advisor like LifeCentra can play an important role here, in terms of offering advice on getting a life insurance policy despite current or potential future unemployment.

Financial Justification (Life Insurance for the Unemployed)

Life insurance types and amount of coverage are given significant consideration while approving a policy. A smaller policy is lot more likely to be approved than an expensive one, so a term policy will be more suitable than a whole life policy if you are unemployed.

The most important thing for an insurance company is the continuity of the policy that has been purchased by the individual. This is because the first few premiums that are paid out only help the insurance company recover the investment they have made towards the policy holder. These include expenses involved in getting the medical evaluation done as well as other administrative expenses.

So, the insurance company must be very certain that you will continue till maturation of the policy (or till the time you are alive), and not give up midway. Nonetheless, you need not feel dejected if you don’t have a fixed source of income, since there are some factors to which insurance companies pay attention while considering policy approval.

Factors Favoring Life Insurance Approval for Unemployed Individuals

While you are unemployed and seeking insurance coverage, it’s important to communicate some of the following aspects to the insurance company. These can help if you wish to improve the chances of life insurance qualification:

  • Possession of assets such as a home that you own, shares which you may be holding or cash savings you may be holding as earnings from previous jobs.
  • If the unemployment phase has not been a long one, the same must be indicated to the insurer, as this may affect their risk calculation.
  • Highlighting your skill sets and future employment prospects is a must, to indicate your ability to fulfill the policy payment terms.

Denial of Life Insurance if Unemployed?

There may be several situations which end up causing a rejection of your application for a life insurance policy. The key factors may include being unemployed for a very long duration of time or not having accrued enough savings from your previous employment. Absence of satisfactory ability to pay for the full term of the insurance is most likely to lead to rejection by the insurance company.

Unemployment does not signify the end of the world, nor does it mean that you do not have the wherewithal to plan for covering future risks. It takes an intelligent presentation of the possible ways in which you can pay the policy’s premium, and a brief study of the assets that you have accumulated over time.

It may take some to find a company that will offer life insurance coverage when you’re unemployed, but you must keep at it till you do. Someday, hopefully very soon, you will be in a position where you have a dependable monthly income that eases the process. In the meanwhile, however, the most essential thing is to understand how to get it right.

This is where an experienced financial advisor like LifeCentra can help you, especially in terms of mapping your current financial condition with the best possible policy and insurance provider that fit your bill perfectly. Get in touch with us for a complimentary review of your finances, to ensure that life insurance will not be an ever-elusive dream!

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