A Guide to Life Insurance in Nebraska (NE)

If exploring the best Nebraska Life Insurance Quotes is something that is high on your agenda, then it is important to consider both  questions concerning life insurance that are generally applicable, but also to hone in on those factors which are specific to life insurance in Nebraska.

In this article I am going to delve down into Nebraska Life Insurance and discuss the current status of life insurance in the state both from a consumers view point, and also looking at the issue from a loftier height in terms of how it impacts on Nebraska’s economy and people.

We will start with an overview of Nebraska, and a little background information about the state. (If you would like to get some Nebraska Life Insurance Quotes right now then simply put your zip code in the box above and click "Start")

 

Nebraska – A Little Background…

Nebraska is the 16th largest state in terms of its area at 77,354 square meters (210 miles wide by 430 miles long), but the 38th in terms of the amount of people who live there (1,826,341 according to the 2010 US Census), and can be found in the mid-west of the United States.

The largest city in Nebraska is Omaha which had a city population of 408,958 and a metropolitan population of 865,350 in 2010, and is home to amongst others Warren Buffet, founder of Berkshire Hathaway which owns a substantial portion of the insurance giant Geico, and also Mutual of Omaha which is another Fortune 500 insurance giant.

The Capital City of Nebraska is Lincoln, which had a city population of 258,379 and a metropolitan population of 302,157 in 2010.  But most of the other cities in Nebraska are rather small, with the next three biggest being (2010 Statistics):

Bellevue -50, 137 people
Grand Island – 48,250 people
Kearney – 30,787 people

Indeed, it is estimated that there are hundreds of towns in Nebraska that have fewer than 1,000 people, and an estimated 89% have less than 3,000. All at a time when the population of Nebraska has actually increased from 1,711,263 in 2000, to 1,826,341 in 2010, an increase of 6.7%.

So, what this illustrates is a movement away from rural or small-towns and into the bigger cities in Nebraska.

In practice this migration has meant the increasing sight of emptier small towns, and the re-consolidation or closure of services such as schools as the number of children in particular areas has declined.

Nebraska had a state GDP of $89.6 billion in 2010, the 37th highest of the States, and contributed just 0.62% of the total US GDP in that year of $14.66 trillion. Nevertheless, to get that into perspective it is worth considering that this is still roughly comparable to the GDPs of Morocco ($91.7 billion) or Iraq ($84.14 billion) according to statistics from the International Monetary Fund in 2010. And hence whilst in comparison to other states the figures seem low, on a world economic view it is still considerable.

Another important consideration is that Nebraska is actually handling the current economic downturn better than most other states in the US. As evidence of that consider that as of January 2011, Nebraska had the second lowest unemployment rate (4.2%) of any of the US States (only North Dakota at 3.8% was lower), coming in at less than half of the National rate of unemployment in the United States of 8.9%

 

Nebraska Life Insurance – The Facts…

Insurance has traditionally played a big role in the economy of Nebraska, particularly Omaha, which at different times has been the headquarters for more than 40 different insurance companies.

At the moment there are 487 Nebraska Life Insurance Companies who are licensed to sell life insurance in Nebraska, and thirty three of those are domiciled in the state.

The amount of people employed by Life Insurance Companies in Nebraska tops 10,000, and there are a further 12,000 non-insurance jobs which are supported by the life insurance sector in Nebraska.

When you consider the different amounts of life cover that are currently in place, the numbers are huge.  

There are a million individual Nebraska life insurance policies owned by Nebraskan residents, and each policyholder had an average of $100,000 of cover.

If you then move over to look at the amount of death cover that is in place then there is $180 billion of cover, and Nebraska Group Life Insurance constutues over $60 billion worth of cover according to the American Council of Life Insurers.

In raw sales alone there was $10 billion worth of Nebraska Individual Life Insurance Cover sold in 2009, and a further $25 billion worth of the Nebraska Life Insurance Companies assets were invested in the state.

In terms of the benefits that were paid out to residents of Nebraska who hold those life insurance policies, these amounted to annuity benefit payments of $670 million and surrender values, matured endowments, death benefits and policy dividends which amounted to $2 billion in 2009.

So it is clear to see that Nebraska Life Insurance Companies play a big part in driving forward the economy of Nebraska.

 

Buying Nebraska Life Insurance – Some Guidelines

There are several different factors to consider before you take the plunge and actually buy Nebraska Life Insurance.

1/ Have The End In Mind

It is imperative that you are clear in your own mind about exactly what your reasons are for getting life insurance.

For example, here are ten reasons that you might want to get Nebraska Life Insurance.

  • Pay funeral expenses
  • Leave a trust fund for your children
  • Endow a charity with money
  • Pay off the mortgage on the family home for the benefit of your spouse
  • Pay for your children to go to college
  • Pay for your wife to go on a holiday
  • Leave money to mend your church roof
  • Protect your business partner from financial ruin
  • Clear off outstanding debts
  • Replace your spouse’s lost income


2/ Work Out Some Costs


Once you know the WHY, then it is important to work out the HOW MUCH.

You can do this by sitting down and adding together estimates of all the different costs that the actions you want your life insurance to achieve will cost.

Once you have done this then you will now have a figure in mind.

Go and get some Nebraska Life Insurance Quotes (you can do that above), and start to get some idea of how much that level of insurance cover will cost you.

It is important to realise that the costs for Nebraska Term Life Insurance (which is for a specific period of time and has no savings element) will be cheaper than Nebraska Whole Life Insurance (which is for your whole life, and does have a savings element, but which will cost considerably more money).

So factor that in and adjust the amount of cover accordingly.


3/ Buy The Cover


It is important not to procrastinate too long about this, because life insurance really is something that everybody should have.  So don’t over analyse to the point where you don’t actually get anything done.

Instead set yourself a deadline to do the research you need to do, and do it thoroughly.

But ultimately, do get yourself covered.

 

Nebraska Life Insurance – The Details…

The legal framework, laws and regulations that govern life insurance in Nebraska come under The State Insurance Code of Nebraska.

This sets down what can and can’t be done in terms of the way life insurance is sold in Nebraska, the obligations that the Nebraska Life Insurance Companies have to consumers, and how the on-going relationship with customers should be managed.

You can find a copy of the Nebraska Insurance Code here:

http://www.sos.ne.gov/rules-and-regs/regsearch/Rules/index.cgi?l=Insurance_Dept_of&t=Title-210

 

Nebraska Life Insurance Resources

Nebraska Department of Insurance

The Nebraska Insurance Department offers one of the better State Insurance websites. It is easier to navigate then most, and is laid out with three different target audiences in mind.

Consumers – Those buying the insurance.
Insurance Agents – Those selling the insurance.
Insurance Companies – The companies who ultimately provide the life cover and financial backing.

http://www.doi.ne.gov/index.htm



Nebraska Life Insurance Company Credit Ratings


You can find credit ratings of the Nebraska Life Insurance Companies at the AM Best website.

This is a good idea to do for a product that you may want your dependants to claim on in 40 years’ time!

http://www3.ambest.com/ratings/default.asp


Nebraska Life and Health Insurance Guaranty Association


This is a statutory body set up to protect Nebraskan consumers in the event of a life insurance company in Nebraska becoming insolvent.

http://www.nelifega.org/



 

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