A Guide to Handling Health Insurance After Layoffs
Published December 8, 2025
Losing your job is an incredibly tough experience that sends you into an emotional tailspin, especially if it comes out of the blue. On a purely practical level, it also means a lot of decisions and adjustments to make, especially where your finances are concerned. One of the most important things to understand during this transition is health insurance after layoffs, as your coverage and monthly expenses can change quickly. You might have to reconsider how much money you’re spending every month until you get another job. When it comes to your health insurance premiums, you have fewer options that don’t involve cancelling your policy altogether. Here’s your guide to health insurance after you lose your job.
What if I am unable to pay for my health insurance?
First of all, if you have been made redundant and had redundancy insurance, you should check with your insurance provider whether or not it covers your health insurance premiums.
Next, if you are having a hard time paying premiums due to losing your job, you do not have to cancel your health insurance policy-you can suspend it. Insurers will allow you to suspend your policy due to financial hardship or unemployment for 2 months or up to 2 years (this length of time will be based on your insurer and policy). In order to suspend your policy, you will need to contact your insurer to let them know you have lost your job and inquire about the process for a policy suspension.
Keep in mind that suspending your policy does affect your eligibility for the Medicare Levy Surcharge but won’t affect your Lifetime Health Cover Loading. You can have a gap of up to 1,094 days (about 3 years) without Hospital Cover and your Lifetime Health Cover Loading will not be reset.
What if I have a corporate health insurance policy?
If you’ve got a corporate health insurance policy, meaning that your cover is arranged through your employer, that specific policy, premium, and benefits may no longer be available. That being said, insurers don’t like to lose customers, so it’s a good idea to contact the insurer and ask what they can offer you-perhaps you’ll be offered a different type of cover at a similar rate.
If you have been made not so useful, it’s worth asking whether your health insurance can be included into your redundancy package. Your employer might permit you to keep existing corporate health insurance arrangements for a certain period of time, such as for 6 months after severing employment.
What if I downgrade my policy?
If it takes a while to find a new job, but you do not want to cancel your health insurance, you could lower your costs by looking for a cheaper policy. In order to find a cheaper policy while still meeting your needs, use an online health insurance comparison tool to search for new options or compare your current policy with others. It checks every policy and every insurer available, without commercial bias, and helps you compare policies easily including corporate policies.
For more help understanding Health Insurance After Layoffs and finding practical ways to manage your cover during job loss, Utility Market shares clear, easy-to-follow guides designed to save you money. Stay connected with us on LinkedIn for updates, expert insights, and smarter strategies to manage your health insurance during challenging times.
