Last Updated on March 9, 2021
Millions of people all over the world have lost their jobs due to the crisis caused by the pandemic. If you are one, you must be worried about yourself and your family’s safety, economically speaking. You must also be wondering what happens to your life insurance when you lose your job. Many life insurance policies are consequently canceled after a job loss. If this had happened to you, you must take the following steps right away!
1. After Loss Of Insurance, Consult Your HR Team
Do not hesitate to get back to your HR manager for any relevant issues, such as the loss of your life insurance. They should provide you with all the necessary information concerning your situation and that of your life insurance policy. Moreover, they can explain their pandemic situation-related allowances, such as the coverage extensions, and clarify a few more clauses that could be ambiguous to you. Do not forget to ask them about the possibility of converting your current life insurance policy to an individual one.
2. Consider What You Need From A Life Policy
After your loss of life insurance, and before shopping for a new one, you might want to consider a few calculations. You should count how much you and your family need first. In fact, you can do that by assessing your financial situation with a financial planner to make sure your family remains protected. However, if you want to opt for an individual assessment to estimate the needed life insurance, there are ways to do that:
-You could multiply your gross income by 10 or 15. Then add 100.000$ for each child’s education. The total is how much you could need to keep your family off the red after your job loss. -Or, you could start by counting your family’s future expenses, such as weddings, funerals, or college loans. Then, subtract that total from your current savings. The difference you get is how much life insurance you should buy.
3. Do An Insurability Self-Evaluation
You should know that when you lose life insurance
and apply for a new one, your insurer must evaluate your application before granting you one. In this situation, it is better if you do that life insurance evaluation by yourself ahead. In other words, you evaluate your application on your own.