Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insur...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: May 20, 2021

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The Brief

  • Life insurance for the unemployed costs $26 per month on average
  • Insurance providers look into your financial situation to ensure you can pay the policy premiums
  • The reason for your unemployment may impact your overall rates

On average, life insurance for the unemployed costs $26 per month. However, your rates depend on your age, medical history, current health status, and coverage needs.

Below, learn how unemployment impacts your coverage levels and premiums and compare sample life insurance rates.

When you’re ready, enter your ZIP code into our free quote tool above and compare life insurance rates for the unemployed.

Can you get life insurance if you’re unemployed?

Usually, you can purchase life insurance for unemployed people. However, the reason for your unemployment may influence your rates.

According to the U.S. Bureau of Labor Statistics, 6% of Americans are currently unemployed.

The life insurance death benefit replaces lost income or finances after a breadwinner passes away.

Unemployment impacts life insurance because you aren’t making any income. Therefore, providers require verification that you can reliably pay your premiums.

Your policy options depend on your age, medical history, and current health status. However, whole life insurance costs tend to be higher than term life insurance.

Below, compare the average monthly rates for a policy with a $250,000 death benefit at different term lengths.

Average Monthly Life Insurance Rates for the Unemployed by Term Length
AgeFemale Average Monthly Rates 10-Year TermMale Average Monthly Rates 10-Year TermFemale Average Monthly Rates 20-Year TermMale Average Monthly Rates 20-Year TermFemale Average Monthly Rates 30-Year TermMale Average Monthly Rates 30-Year Term
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As you can see, it’s possible to secure affordable life insurance for the unemployed.

Expect providers to inquire about why you’re unemployed and for how long when you apply for insurance.

If the lay-off is temporary and short, it’ll be easier to get approved for a policy than if it’s long-term.

To find the best life insurance company for the unemployed near you, shop around and compare rates from multiple providers online.

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Do I need life insurance if I’m unemployed?

Do you need life insurance if you’re unemployed? If you have any financial dependents, you should invest in personal coverage.

Stay-at-home parents, for example, may not have a traditional job, but children still rely on them financially.

People in debt with a cosigner on their loans should also purchase personal life insurance.

Unlike employer-provided group life insurance, a personal policy stays with you for as long as the term lasts.

To increase your chances of approval, prove you’re seeking employment by having a copy of your resume ready, show evidence of your financial strength, and consider applying for a lower death benefit amount.

Be mindful about making your payments on time. If you miss one, you risk losing your coverage altogether.

Life Insurance for the Unemployed: The Bottom Line

Overall, most people will have no problem securing life insurance quotes for the unemployed.

However, if you’re financially unstable or cannot work because of poor health, it will be more challenging to find coverage.

You can buy life insurance for the unemployed by entering your ZIP code into our free quote tool below.