Life Insurance for the Unemployed

If you are unemployed you might think you have no reason to get life insurance. Life insurance for the unemployed is generally not too hard to get, but you will have to share financial details with the insurance company regarding your assets and the state of your job search. Read more to get a total understanding of how unemployed people can get great life insurance coverage and to learn how to get great life insurance rates for the unemployed.

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Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Benjamin Carr was a licensed insurance agent in Georgia and has two years' experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. He is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.

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Reviewed by Benji Carr
Former Licensed Life Insurance Agent

UPDATED: Jul 19, 2021

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Quick Facts

  • Life insurance is designed to protect lost income.
  • You could have difficulties getting life insurance coverage if you are unemployed.
  • If unemployment is recent, most insurance companies will base your coverage off the wages you made in your previous position.
  • You will need to prove you will be able to pay the insurance premiums.
  • Long-term unemployment needs to be justified to the insurers before they issue a life insurance policy.

Life insurance policies are often viewed as tools designed to protect income in the event of a death. However, what happens if there is no income to protect because of unemployment? Can you still get a term life insurance quote if you are unemployed?

Life insurance for the unemployed is available, but your policy could be reduced. Life insurance companies take into account a number of different factors when creating a policy for you. They look at your health, your lifestyle, your family’s health history, your finances, and your income.

If you are recently unemployed or transitioning between positions, you likely won’t have too much trouble getting a life insurance policy. However, if you are chronically unemployed or face long-term unemployment, you may have more difficulties getting life insurance.

If you’re ready to start comparing life insurance quotes, enter your ZIP code above to get affordable life insurance for the unemployed. Not yet ready to buy life insurance for the unemployed? Read on to learn more.

Can I get life insurance if I am unemployed?

Yes, generally speaking, you can still get life insurance if you are unemployed. Insurance companies all follow their own underwriting guidelines when it comes to creating insurance policies, but there are a few financial matters they will probably like to look into.

The insurance company will want to know what your last position was, how much you made in this position, and if you are actively looking for work. The information they gather on your finances and job status will help them gauge how much monthly premium you can comfortably afford.

It is in everyone’s interests if you can afford your monthly payments. Showing the insurance company additional assets besides income can help you get higher coverage, as well. If you’re recently unemployed and looking at the different types of term life insurance, apply as soon as possible.

Getting life insurance while unemployed is not impossible, though the less unemployment time the insurance company sees on your file, the better your policy will be.

Does life insurance cover unemployment?

If you had a life insurance plan before you were unemployed, you have nothing to worry about if you continue to make your monthly payments. You will not lose your coverage.

Life insurance does not cover unemployment. However, if you have a permanent life insurance policy, it is possible to borrow money against your policy, as it is considered a cash asset. In the event you are unemployed, this could help you bridge the gap between jobs.

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Can you get a life insurance policy for an unemployed spouse?

While non-working parents might not provide income in a direct manner, their contributions to the household are very important.

Non-working parents can qualify for life insurance coverage. The tasks they perform on a daily basis have economic value, and replacing this work can be very costly on the open market.

Take a look at how some of the biggest insurance companies in the country cover non-working spouses.

Insurance Coverage for Non-Working Spouses
Life Insurance CompanyNon-Working Spouse Policy
AIGMatches up to $1.5 million of working spouse's coverage. Coverage limited to 10x working spouse's income if household income is less than $25k.
Banner LifeMatches working spouse's coverage. If household income is below $20k, no coverage will be offered.
Lincoln FinancialMatches 100% of working spouse's coverage. Maximum coverage is determined on a case-by-case basis.
Mutual of OmahaMatches 100% of working spouse's coverage up to a maximum of $2 million
Pacific LifeMatches 100% of working spouse's coverage up to a maximum of $3 million ages 70 and below. Matches coverage on a case-by-case basis ages 71 and above.
PrudentialMatches 100% of working spouse's coverage. Maximum coverage is determined on a case-by-case basis.
SBLIMatches up to $2 million of working spouse's coverage
TransamericaMatches up to 50% of working spouse's coverage up to a maximum of $2.5 million
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As you can see, non-working spouses can still get quality life insurance policies from a number of different companies. Shop around to find the best quotes in your area.

Life Insurance for the Unemployed: Final Thoughts

Unemployment is not a factor that will automatically deny you life insurance coverage. Obviously, the specifics of your financial situation and unemployment will play a large part in determining the amount of life insurance you qualify for.

You can get a term plan for unemployed spouses from a lot of quality life insurance companies. Don’t let unemployment stop you from seeking a life insurance policy.

The best life insurance for unemployed people is found by comparing rates. If you’re ready to start looking for great life insurance policies in your area, enter your ZIP code below to start comparing life insurance quotes for the unemployed.

Which life insurance company for the unemployed is for you? Find out now.



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