If you are unemployed and are unable to obtain coverage, you may be wondering what your options are. Your current or most recent policy terms, as well as your health, long-term financial plan, and employment status, all play a role in determining what to do next.

Consider your insurance needs

Begin by asking yourself why you want to keep or replace your insurance. In general, life insurance is only required if your death would cause financial hardship for others.

According to Scott Holeman, media relations director at the Insurance Information Institute, if you are a high-income earner or the sole earner for a young family, you should consult with a financial planner to ensure your family is protected during your unemployment.

If an employee is rehired within six months, MetLife will reinstate coverage without requiring proof of insurability. As a result, if you intend to return to the same company and do not require coverage during your absence, inquire with your human resources department about reactivation options.

Furthermore, if your spouse has a policy and you are concerned about shared dependents, Holeman suggests increasing their coverage to help offset the loss of your policy.

Take action immediately.

“If you are recently unemployed and want to continue [having] life insurance, you should probably do so as soon as possible,” Holeman advises. Employment is generally regarded favorably by insurers because it can indicate your ability to pay your premiums. If you can demonstrate that your unemployment was recent and that you have strong job prospects, they may not view you as a risk.

Your assets are another way to demonstrate financial strength. According to Holeman, insurers may be more willing to sell you a policy if you can demonstrate a consistent history of paying for things like a car loan or mortgage.

Buying coverage on the open market while still employed may be easier for those who are concerned about losing their job and can afford the premiums on a new policy, according to Holeman.

Talk to your HR team

According to Jessica Gillespie, senior vice president and head of distribution at Prudential Group Insurance, your former employer "likely offers a financial wellness program to help you better understand what benefits you truly need." Human resources departments can also explain any pandemic-related benefits, such as coverage extensions for employees who are temporarily laid off, furloughed, or working fewer hours.

If you want to keep the same policy, Holeman recommends speaking with your HR team to see if it can be converted to an individual policy. You may also be able to transfer your coverage to a new employer if they offer the same type of policy. Some insurers are extending porting and conversion windows to give employees more time to switch.

Consider temporary solutions

Temporary solutions, such as term life insurance, can help bridge the employment gap. “Ask about policies with a shorter term or less coverage,” Holeman advises. “You might also want to consider things like accidental life insurance or final expense insurance, which would cover the cost of a funeral.”

Evaluate your insurability

Your employment status is only one factor in determining your insurability on the open market. Keep in mind that insurers may use your driving history or criminal record, as well as your age and health, to evaluate your application.

According to reports, insurers are turning away an increasing number of high-risk applicants, such as those over a certain age or with serious medical conditions. If this describes you, you should look into guaranteed or simplified issue policies, which require little to no information about your health. They are, however, more expensive and typically provide less coverage.

Outside of the workplace, group life insurance is also available. “Many associations and affinity groups offer products such as life insurance, accident insurance, disability insurance, and other products at prices comparable to what you would have paid through your employer,” Gillespie says.