Life insurance is a valuable tool that can help protect your family in the event of an unexpected death. However, there are a lot of factors that life insurance companies will consider when determining your eligibility for coverage. If you’re currently unemployed, that could mean you’ll struggle to find a company that will approve your application.
Getting life insurance when you’re unemployed can be difficult but not impossible. This guide outlines everything you need to know to get approved for life insurance coverage during unemployment.
Factors Affecting Your Eligibility for Life Insurance When you’re Unemployed
Here’s what insurance companies look for when they consider your eligibility for coverage:
Duration of Unemployment (DU)
This is the length of time between losing your job and the time you apply for coverage. If you’ve had a steady job for several years and only recently got unemployed for a short period, you’ll probably be more likely to qualify for coverage than someone who has been unemployed forever and or has only recently applied to start a new job.
Furthermore, if you have plans to apply for jobs in the near future or already have leads on potential employment opportunities, that will strengthen your chances of being approved since you’re taking steps to re-enter the workforce.
Assets and Liabilities
Life insurance companies will also look at your assets when determining your eligibility for coverage. The more assets you have, the less of a risk you’ll be to the insurance carrier. On the other hand, having many liabilities like outstanding debts, credit cards, medical bills, or other obligations could also increase your risk of becoming ineligible for coverage.
Increasing Your Chances of Qualifying for Life Insurance
Doing Some Research
Take some time to research different insurance companies and their underwriting criteria before you apply. Look for reliable life insurance companies and compare their policies to find the best fit for your needs and budget.
Prove that You Can Pay Your Premiums
Since you don’t have much income to rely on right now, your life insurance company must know that you’ll be able to pay your monthly premiums when the time comes. If possible, try to set aside a sum of money each month that you can use to pay for your insurance premiums.
Inexpensive Coverage Plans
Since you’re unemployed and don’t have a high salary to cover your insurance needs, it’s a good idea to opt for inexpensive coverage options that allow you to purchase a larger amount of coverage for less money. This way, you won’t have to pay high premiums every month and can be confident that your family will be protected in case of an emergency.
Reveal Your Assets
If you’re a stay-at-home parent or have no immediate plans of applying for a job, getting life insurance coverage can be challenging. In this case, you can disclose your assets and show that you’re capable of paying your insurance premiums without a job. For example, if you own real estate properties or have other valuable assets like a car or jewelry, you may be able to show your insurance company that you have other sources of income that you can use to pay your insurance premiums.
Ask for Help
If you have never applied for life insurance before, it’s a good idea to get in touch with an insurance agent for guidance. An agent will be able to give you expert advice on your eligibility and help you choose a suitable life insurance policy that meets your needs. You can also talk to your friends and family members who may know about applying for life insurance and get advice from them. This will increase the chances that your application will be accepted by the insurance company and get you covered quickly.
Life Insurance in Houston, Texas
If you’re looking for life insurance for yourself or your unemployed loved ones, our agents can guide you! At Franklin Life and Annuity, we can help you find a suitable life insurance coverage plan according to your budget and needs.
Get in touch with us to get a quote for final expense insurance or burial insurance for parents!