Worried About Losing Your Job? Secure Life Insurance Protection Before You Do
By: Matrix Direct,
Submitted: 2009-02-23 05:00:48 | Word Count: 594
Typically, the best time to find a new job is when you still have one. You have some leverage in negotiating pay, benefits, and perks with your potential new employer; and you are still earning a paycheck to support you and your family.
But did you know that life insurance is important to secure while you have a job too?
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Determining What You Need
When you are shopping for life insurance coverage, you might use some online life insurance needs calculators that can help you determine how much coverage is right for your particular situation.
Talking to a licensed agent can help you nail down a coverage amount as well. Experts generally recommend coverage at 5 10 times your annual salary.
But, life insurance companies typically have their own guidelines to determine how much coverage is appropriate for each individual. Your employment status and current income are some of the important factors in this equation.
Since your current income is a key component of your coverage amount eligibility, you should apply for life insurance while you are employed. If you wait until you are between jobs, it can be very difficult to get the coverage amount you need and it might be hard to get any sort of coverage at all.
Employer’s Coverage as a Perk
Many employers offer their employees some amount of life insurance – either free or at a reduced cost – as a part of their overall benefits package. Each employer’s policy can vary widely, and the coverage often may not be adequate to protect your family. And, in many cases, your coverage ends when you are no longer an employee.
Not the End of the Road
Let’s face it – putting off a decision on life insurance can be an easy thing to do. After all, who wants to think about dying?
So, what can you do if you’ve been putting off a decision and are now unemployed? You do have a few options available to you. If you and your spouse were both employed and one of you lost your job, the unemployed spouse can declare “homemaker” status on your life insurance application.
The coverage amount for which the “homemaker” would be eligible is dependent on the working spouse’s income and the life insurance company, but it could be up to $500,000.
In specific cases, the life insurance company might factor in your future employment potential. If the outlook for you finding a new job is favorable, the company might accept your life insurance application for up to a certain amount of coverage.
You could also look at securing a type of insurance called Accidental Death & Dismemberment, or AD& D. As the name implies, AD& D coverage pays benefits only in the event of accidental death, or certain accidental bodily injuries set out in the policy.
AD& D life insurance is typically more affordable than traditional types of life insurance and can go in force, or into effect, in a matter of days. AD& D can tide you over until you’re back on your feet and able to get full life insurance coverage.
Don’t Leave Loved Ones Unprotected
Losing a job can be a traumatic experience, for both the recently unemployed person and his or her family. Questions such as “when will I find a new job?” and “how will we pay the bills?” can cause a tremendous amount of stress. You shouldn’t have to stress over what would happen to your family if you were to pass away prematurely too.
Author Resource:-
Matrix Direct, Inc. is one of the country’s leading life insurance agencies. Millions of Americans have contacted us for their free life insurance quote. Visit http://MatrixDirect.com for more information about us.
