What Should You Do When You Lose Your Job?

Losing a job can hit hard, leaving many people feeling overwhelmed and stressed. But it’s important to remember that you’re not alone, and there are steps you can take to regain control. We’re here to provide some practical tips to help you navigate this period with confidence and clarity.

Start With a Financial Assessment

Getting a handle on your finances early is crucial. Begin by revisiting your budget and creating a temporary plan that fits your new circumstances. Then, make sure to focus on maintaining your life and health insurance coverage—especially if you previously had employer-provided insurance. This will set the foundation for informed decisions as you move forward.

Reevaluate Your Budget

With your income changing, it’s time to take a hard look at your day-to-day budget. Consider cutting back on nonessentials, like pausing TV subscription services or dining out less frequently. Build a temporary budget to reflect your current financial situation. Need more advice? We’ve got tips on when and how to update your budget.

Maintaining Health Insurance

Keeping your insurance intact during unemployment is crucial. Explore options like COBRA for continuing your current health insurance temporarily. For more information on COBRA benefits, visit the COBRA information page.

If COBRA isn’t an option, see if you can join a family member’s plan. You can generally join your spouse or domestic partner's plan under a "qualifying life event" such as job loss. You can also explore the healthcare marketplace through healthcare.gov. Losing your job qualifies you for a special enrollment period, allowing you to purchase an ACA- compliant plan. Subsidies may be available based on income.

What to Do About Employer-Provided Life Insurance

Employer-provided life insurance often ends when your job does. Check on the status of your coverage and consider converting it to an individual policy or looking for alternative coverage.

At Gerber Life, we offer life insurance plans for children and adults, so that your family or loved ones are covered no matter what happens. Whether you’re married, single, a parent or a grandparent, learn more and find a plan that fits your unique needs and budget today.

Explore Unemployment Benefits

Unemployment benefits can be a lifeline. Generally, if you were laid off, you’re eligible to apply, but be aware that each state has its own rules. For details on eligibility and how to apply, visit the federal government’s unemployment benefits page.

Find Other Ways to Make Money

While you search for a new job, consider taking on side gigs. What skills do you have that could be used for freelancing? Could ridesharing or food delivery provide flexible income that fits your schedule? Side gigs won’t fully replace your previous earnings but can help ease the financial strain.

Tap Into Your Emergency Fund (If Needed)

If you’ve got an emergency fund, now’s the time to use it. You can use this money to help cover rent or mortgage payments, monthly bills or any of your other necessary expenses. This fund is meant for situations like this, so don’t feel bad about tapping into it. If you don’t have one yet, start building an emergency fund as soon as you’re back on your feet. For more on handling unexpected expenses, check out our tips.

Remember, This Is Temporary

Typically, a job loss is a temporary challenge, not a permanent situation. Stay positive and focused on your job search and personal growth. When you find your next opportunity, remember that Gerber Life is here to support you. Check out our guide on financial moves for a new job to help you plan for a successful start.

Navigating job loss can be tough, but with a clear plan and the right resources, you can manage your finances and come out stronger. Take it one step at a time, and remember, brighter days are ahead.