Life insurance is an important tool that will always be necessary in today’s world in order to help protect many of your loved ones in the event of your untimely death. If people depend on you, life insurance can absolutely help them out if you die unexpectedly. However, there are still many questions associated with life insurance. One of the main ones is this: what if you are unemployed? Is it still possible for you to get a life insurance policy?
There are several factors that the life insurance company will want to investigate if you are not working, but you want to submit your application for life insurance. Keep some of these factors in mind:
What is the length of your unemployment?
How long have you been out of a job? That is the first thing that an insurance company will want to know. If you have been in a bout of short-term unemployment, then chances are an insurance company will still allow you to have life insurance coverage. Of course, it would also help if you have had a history of steady employment that the life insurance company can examine.
Do you have good skill sets? If your skills are in demand, that could definitely sway a life insurance company to approve your application simply because of the fact that you will likely be hired again in the not-too-distant future.
What type of industry did you work in? If you were employed in an industry that is dying, such as a data entry clerk or a dial-up internet installation technician, then chances are the life insurance company might decline your application. However, if you work in an industry that has a lot of jobs, then you stand a much better chance of getting insurance.
What are you doing while you are unemployed? If you are a stay-at-home parent or a college student, then yes, you do work. Yes, you are technically “unemployed,” but in either of these situations, you will have many duties. Insurance firms will look upon a stay-at-home parent in particular with a lot of favor, and they will usually give them just as much coverage as a working parent, especially when you factor in the high cost of childcare. Of course, if the spouse that is working makes a substantial income, the insurance company will probably only cover the stay-at-home parent for half the amount of the working parent. However, there is still no question that both parents should absolutely have life insurance.
What about your other assets?
If you have other assets, you might be able to get approved for life insurance even if you are unemployed. The main hurdle you are going to experience with your life insurance company is going to be whether you can continue to pay the premiums. If you can show them a sizable savings account or other assets, they might let you slide even if you are out of work.
Sell yourself to the life insurance company.
This is a situation where you will really need to sell yourself to the life insurance company. For example, although this might seem a bit unusual, you will probably want to consider giving them your resume. Additionally, they will want to see some evidence that you are financially stable. Finally, you might want to consider a lower amount of insurance than, say, a one million dollar policy.
The price of life insurance
For starters, the average cost of life insurance across the board would be about $26 per month. However, the true cost of life insurance for you and your family could vary greatly, depending on your own personal circumstances. For example, if you are more than 40 years old, your policy might be higher simply because life insurance rates are based on life expectancy. For a person 40 and above, the rates are generally about a hundred extra per year. At age 50, the payment will triple. Generally, the earlier you get life insurance, the cheaper it will be. For example, men in their 30’s can expect to pay $229, and women in that age bracket will pay $193. Men who are 40 will pay $341; women will pay $290. Finally, men in their 50’s will pay $840; women will $650.
Does all this sound kind of complicated to you? Well, don’t fret, because there are many calculators online. A good term life insurance calculator is available at Haven Life, and it will definitely become a huge asset to you when you are looking for a good deal on life insurance!
