Some studies suggest that physical health deteriorates during economic expansions and improves during recessions. These studies, however, focus on the short-term effects of economic fluctuations, and are in sharp contrast with extensive literature suggesting that, in the long-run, unemployment is associated with poorer health and increased mortality. We aim to advance understanding by providing three new insights into this literature. First, we simultaneously examine the short- and long-run cumulative impact of individual unemployment and historical economic fluctuations on health at old age in 13 European countries using data from the Survey of Health, Ageing and Retirement in Europe (SHARE). Next, we explore the role of unemployment benefit policies in buffering the health impact of economic downturns using variations in duration and maximum benefits across Europe over the last 50 years. Results illustrate the complex links between business cycles, unemployment and health and stress the role of unemployment benefit policies in buffering the effects of economic downturns.