In these challenging times, every person wishes to guard their loved ones against unforeseen circumstances that might leave them financially shattered. Hence, buying a life insurance policy is the first thing that comes to the mind of people. Life insurance acts as a financial blanket that helps your family members remain economically secured if anything unfortunate happens to you.
However, what if you are unemployed? Can you still own a life insurance policy?
Buying life insurance can be a challenging task. The insurance companies have a particular evaluation process, and you should meet the criteria to obtain coverage.
How being Unemployed Affects your Life Insurance Eligibility?
For our health as well as the finances, present times are of great uncertainty. As a result of the COVID 19 pandemic, many individuals have been jobless, bursting out, or lost work hours, and everyday life has become unpredictable. How does it affect life insurance? Should you worry about qualifying for life insurance if you're unemployed or if you're on the verge of being unemployed?
If you are unemployed, your resources will undoubtedly suffer, and your insurance application might get delayed or denied. The insurance company considers various factors when evaluating your application, including your family's medical history, occupation, overall health, and, most importantly, your financial position.
Also, you should be aware that each insurance company has its screening process, hence being jobless may not always be a barrier to getting the required life insurance for unemployed people.
Learn can you get a life insurance plan if you are self-employed?
How to Get Life Insurance if you're Unemployed?
If you're unemployed, there are certain measures you can take to boost your chances of being approved for life insurance:
1. Reduce your coverage requirement
This is one of the most effective steps that can increase your odds of getting a life insurance policy. If you are presently unemployed, you can opt for a policy that presents reduced coverage.
2. Seek more cost-effective insurance
If you're on a tight budget, term life insurance coverage may be the best option. It's usually less costly than other alternatives and covers you for a fixed duration of time, ranging between 10 to 40 years.
3. Justify your position
Provide a copy of your CV and prepare a letter explaining your circumstance before initiating your application procedure. Your insurer may be more inclined to accept your application if you've just lost your job and have a strong probability of finding employment in a similar position.
Read these 5 reasons why your life insurance application could be rejected.
Life Insurance Plans by Canara HSBC
Now that you are informed of all the aspects an insurance company considers while approving life insurance for unemployed people and how you can deal with such aspects, you are fully equipped to make an informed decision.
If you're looking for a reliable life insurance company that will be reviewing your case personally and will help you get insurance suitable for your needs.
Here are some of the most comprehensive life insurance plans offered by Canara HSBC
1. iSelect Smart360 Term Plan
iSelect Smart360 Term Plan by Canara HSBC provides comprehensive insurance coverage to people till the age of 99 years. Also, the iSelect Smart360 Term Plan presents some supplementary benefits like:
a. Return of premium option when the policyholder outlasts the maturity period of the life insurance plan.b. Increasing sum secured on the life insurance plan selected by the policyholder.c. Apart from securing the policyholder's life, iSelect Smart360 Term Plan also includes the alternative to cover your spouse. d. For people not comfortable with paying huge premiums, this insurance plan provides a limited premium payment option.
2. Invest 4G Plan
Invest 4G is a Unit Linked Insurance Plan that provides you with comprehensive control over your finances and helps you fulfil all your set long and short term life goals. Some of the best features of this Invest 4G plan are:
a. Premium paying flexibility; You can choose your desired term to schedule the premium payouts of this plan.b. Wealth Booster and Loyalty Addition options to boost your investments and yield higher returns. c. Option of systematic withdrawal that helps you create a stable income stream.
3. Guaranteed Savings Plan
Guaranteed Savings Plan provides investors with a guaranteed sum assured along with the flexibility to choose their desired savings horizon. Some of its features are:
a. Pay premiums for limited-term and get coverage for the entire term.b. Assured benefits that are payable on maturity. c. Flexibility in choosing the premium payment term. You can either pay in a lump sum or fixed instalments.
4. Guaranteed Income4Life
Guaranteed Income4Life Plan is a highly customisable insurance plan that covers you for your entire life and helps you meet your set long term goals. Some of its extensive features are:
a. Premiums payment for limited years and benefits for a lifetimeb. Option to opt for a spouse coverc. Guaranteed regular income post retirement
Financial difficulties in these challenging times are bound to cross your way sooner or later. However, by choosing to opt for life insurance, you can stay ahead and sail through such financial problems smartly!