Will receiving a life insurance payout affect my unemployment payments?
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Will receiving a life insurance payout affect my unemployment payments?
I might have unclaimed funds in my name in the form of a life insurance policy but I am currently receiving unemployment benefits. Will accepting the life insurance payout affect the unemployment benefits I receive? I have debt and health issues I would rather use that money to address those issues because in the long run would expand my employment opportunities as far as salary and physical ability is concerned.
Asked on November 15, 2011 under Employment Labor Law, New York
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
No, eligibility to collect unemployment is affected by income from work--whether as an employee, as an independent contractor, as self-employed, etc.--but is not affected by any income which is not from working. So proceeds of a life insurance policy, a settlement from a lawsuit, an inheritance, etc. should not affect your unemployment eligibility.
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