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Life Insurance

Five of the Key Steps to Take If You’ve Just Lost Your Job And Have a Family to Support

21 May 2020

Life Insurance by Life Stage

The choices you make today can impact your long-term health, wealth and happiness. Understand the important role Life Insurance can play in key life events.

There’s a feeling of uncertainty in the air right now that extends all around the globe.

But there’s one thing we all know…

What’s happening right now makes working a lot more difficult. If you’re fortunate, you’re able to work from home and still provide an income for your family. But if your job doesn’t allow for that, you may not have much money coming in. And even if you expect to receive retrenchment pay, you need to look to the future.

Retrenchment pay might carry you through right now.

But what if your employer isn’t able to keep the business running long enough to get through this crisis?

What if you lose your job?

The good news is that there are active steps you can take to move forward if that happens.

Step #1 – Acknowledge Your Negative Emotions (But Don’t Let Them Drag You Down)

You’ve lost your job and you feel angry. And there are likely other negative emotions getting thrown into the mix, too. You may feel guilty that you’re unable to provide for your family right now. Plus, you may feel concerned about what comes next.

These are all very natural emotions to feel in this situation and it’s good to acknowledge them.

However, don’t allow them to drag you down. Living under a constant cloud of negativity will affect your mood and motivation.

Acknowledge how you feel and then switch focus. Instead of looking at the problem, point your mind in the direction of potential solutions.

Step #2 – Contact Your Creditors to Inform Them

Your bills will be a key concern after losing your job. How will you pay the mortgage, utilities, and any policy fees you have? And if all of your remaining money goes to these bills and loans, will you have any left over for the essentials?

The key here is that you don’t bury your head in the sand.

Contact your creditors and inform them of your situation. You will find that many will offer short-term alternatives to help you get back on your feet. For example, your loan provider may offer a mortgage holiday while you look for another job.

Issues with creditors often arise because people avoid talking to them. Be honest and open so that you can work together on a solution.

Step #3 – Work Out a New Budget

Your monetary situation will change, at least during the near future. And if you don’t have savings to fall back on, you’ll need to start tightening your belt.

This is where creating a budget comes into play.

You may already have a budget based on your previous income level. But you have to revisit your spending when that income decreases.

Make a list of every expense that your household incurs. Some of these are essential expenses, such as the mortgage and utility bills. Prioritise these, and consider eliminating some of the non-essential.

Those non-essentials may include subscriptions, gym memberships, and some forms of entertainment. You may even find ways to cut down on some of the essential expenses. For example, you could opt for non-branded food items when grocery shopping to save a few dollars.

This stripped-down budget could help see you through the tough times until you’re able to find another job.

Step #4 – Update Your Résumé

When’s the last time you looked at your résumé?

If you held your job for several years before losing it, your résumé will need an update.

Obviously, you’ll include details about your most recent job. However, it’s also important to redraft the rest of the document based on how you’ve progressed. For example, you may have a personal statement from ten years ago that doesn’t reflect what you want in the present.

It’s also worth checking the formatting of your document. Thankfully, there are many résumé-building templates online that can help you with this.

Step #5 – Take Active Steps to Find a New Job

First of all, don’t just sit around and wait for a new opportunity to fall into your lap.

Get active with your job search. Upload your résumé to as many job sites as you can find. Talk to your connections about any possible opportunities. Your LinkedIn profile can be particularly helpful here.

It’s a good idea to commit to applying for a set number of jobs per day. Even if the role isn’t ideal, you’ll gain experience of the application process and may find a short-term solution.

The point is that staying active keeps you in work mode. It helps you to stay motivated, even when dealing with a crisis situation.

Consider whether Life Insurance is something you should have

Life Insurance may not be at the top of your mind if you’ve lost your job. However, it’s a type of insurance that you should consider during this time for a number of reasons, including:

  1. Your previous policy may have been tied to your place of employment. If you’ve lost your job, depending on the terms of the insurance cover (usually known as ‘group cover’) your employer has in place for employees, it’s possible that your cover went with it.
  2. You need to do what you can to help protect your family financially if the worst happens. This is especially the case if you have no income coming in. If your family loses you now, before you can fix the issue, they could face deeper financial trouble.

There is Life After Losing a Job…

…And if you follow these steps, you’ll find it sooner rather than later. Stay active in your search and do everything you can to raise the chances of finding another job. That isn’t to say that you shouldn’t feel angry or upset. Just recognise that these feelings will hold you back if you don’t take a more positive approach.

And most importantly, consider ways to help protect yourself and your family financially during this difficult time.

To insure or not to insure?

That is a question that only you can answer. You may choose to get some professional advice, or to carefully consider your own needs and circumstances and deal directly with a Life Insurer like NobleOak who can provide you with general advice and product information.

This is general information only and does not take into consideration your individual circumstances, objectives, financial situation, or needs.

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