Senior woman looking out a window

Unemployment and Life Insurance

Posted On Jan 18, 2022

If you’re over the age of 50, recently lost your job, and had life insurance through your employer, you may be wondering how this affects your chances of getting a life insurance policy in your senior years.

Many people lost their jobs or were temporarily laid off due to the COVID-19 pandemic and its impact on the economy.

The good news is, there are options available to you if you lost your insurance policy due to unemployment.  In most cases, qualifying for life insurance coverage is possible when you’re unemployed. Turning to the licensed professionals available to you through Americo Senior Life can assist you in knowing your options.

Life Insurance Eligibility When You’re Unemployed

Here are a few things to keep in mind when unemployment has left you without life insurance.

1. Talk with your former employer’s human resources team as soon as possible to see if extensions are available to continue your life insurance plan. Another option is to convert your former employer’s group life insurance policy into an individual life insurance policy. This option is advantageous for seniors with health conditions that might impact life insurance eligibility. 

2. Contact life insurance companies aimed at seniors right away. By being proactive and letting the company know, life insurers will understand you’re actively seeking new employment. Anything that can demonstrate your strong job prospects will help improve your ability to buy life insurance. In general, if you’re looking for a new job with the same salary as your previous job, life insurance companies are generally willing to insure you. 

3. Consider a term policy. A term life insurance policy can be a temporary solution until you find new employment. Term life insurance is coverage for a set period of time, usually from 5 to 30 years. This type of insurance guarantees a death benefit payout if the policyholder dies within the coverage period. 

While term life insurance for seniors may have fewer options, a little higher cost, and be limited to 20 years, it is still possible for older adults to take advantage of a term policy if they find themselves unexpectedly unemployed.

4. Look at your insurability. Stop and take a look at the factors that impact insurability. Beyond age, assess where you might stand in an insurance company’s eyes in regard to your health. As you know, an insurance company will likely want to conduct a medical exam as part of its assessment. Things like smoking, past accidents, or being prone to disease all have an impact on purchasing a life insurance policy. 

Don’t Let Your Coverage Lapse

In most instances, your previous life insurance coverage will stop at the end of the month that your job ends. Finding a life insurance policy for seniors should be one of your top priorities. Don’t delay in investigating your options for staying covered, because your swift action at this time is essential to keep those you care about protected.

If you have any questions about life insurance for seniors or term life insurance eligibility, our experts are always ready to help. Feel free to contact us today.