Many people are understandably concerned about what might happen to their family and loved ones if they pass away, which is why they generally invest in life insurance policies. Oftentimes, when you have a beneficiary and are employed, your employer will cover a portion of your life insurance costs rather than you having to pay the insurance company the full price for your life insurance. That being said, if you’re currently unemployed, you may be wondering if you can—or even should—purchase life insurance.
Ultimately, whether or not you purchase life insurance (and how much of a premium or cash value your term life insurance has) is a personal preference. Many times, that number is informed by how much you’re currently making at your work, especially if you have a spouse or children who would depend on your death benefit’s cash value in order to make ends meet after you pass away. If, however, you can’t get life insurance through work, there are a few different questions to ask yourself. Knowing the answers to the following questions can help you better determine whether or not it makes sense for you to talk to insurers about getting term life insurance.
Do you have beneficiaries?
If you have other people who have been counting on you for some of their financial needs, it might be a good idea to look into getting a life insurance policy even if you’re not currently employed. Not every type of life insurance may be something you qualify for depending on your employment situation, though. For example, if you’re not actively looking for work, or you can’t find a job, it may be harder to qualify for life insurance coverage with an insurance company. On the other hand, if you’ve decided not to return to work in order to be a stay-at-home parent, many life insurance companies may consider you working, which means you may qualify for a term life insurance policy.
Before you go through the application process and figure out your coverage amount, it’s a good idea to compare different insurers. Thanks to the internet, it’s easier than ever to get life insurance quotes from various insurance companies. This allows you to compare different coverage options and payouts to find the best rate for the type of insurance policy you’re looking for. Each type of policy has its own pros and cons, so being able to compare quotes for life insurance online can be a major help when you’re working to figure out the right amount of life insurance for yourself or your partner.
Are you looking for future work?
If you’ve been laid off or furloughed because of the COVID-19 pandemic, you may not need to look for supplementary life insurance in the meantime. This is because once you return to work, you’ll likely receive eligibility to obtain life insurance through your employer again based on your annual income. Rather than spending time comparing different insurance options and types of life insurance policies, it makes more sense in this scenario to spend your time and energy applying for new jobs. Once you’re hired at a new company, you’ll be able to hop onto their life insurance plans and take advantage of other benefits that can help you meet your investment objectives and health insurance.
Obviously, everyone has their own unique situation when it comes to life insurance. Especially if you’re a parent and have family members who are counting on you for college tuition costs—or if you want peace of mind that your funeral costs won’t cost your family members their retirement savings—it’s important to have life insurance. When you keep in mind your answers to the above questions, you can better figure out when the time is right to take out life insurance if you’re unemployed.