- Life insurance is the best way to protect your loved ones when you pass away.
- A life insurance policy is one of the best investments you can make for you family’s financial future.
- Nevada life insurance companies can help you find a policy to suit your needs and budget.
Nevada is known as the Silver State and is located in the western region of the United States. It’s bordered by Idaho and Oregon to the north, Utah to the east, Arizona to the south, and California to the west. With a population of 3.03 million people, it’s the 32nd-most populous state. The largest city in Nevada is Las Vegas which has a population of 649,876 residents. The state capital is Carson City which has a population of 55,414.
According to the Center for Disease Control and Prevention (CDC), the average life expectancy in Nevada is approximately 76.3 years which is lower than the national average life expectancy, which is currently around 79.05 years in the United States. Over the past few years, the leading causes of death in Nevada have been heart disease, cancer, and Covid-19. The homicide rate in Nevada is around 7.3 homicides per 100,000 residents, which is close to the national average of 7.5.
According to the U.S. Bureau of Labor Statistics, in Nevada, the 90th percentile income is currently $96,230. The median income in the state is approximately $37,900. Most financial advisors recommend purchasing a life insurance policy that covers your loved ones for between 10X and 20X your annual salary. In Nevada, this works out to around $962,300 – $1,924,600 dollars for most people.
How life insurance works in Nevada
A life insurance policy is basically a contract between you and the life insurance company. You agree to pay premiums to the company. In exchange, the company agrees it will pay a death benefit to your loved ones, which is typically a lump sum payout, if you pass away during the term of your policy. That said, there are several types of life insurance policies.
Term life insurance is the most basic and straightforward type of policy. It provides coverage for a specific period of time, typically 10, 20, or 30 years. If you die during that time frame, your beneficiaries will receive the death benefit. If you don’t die during that time frame, the policy expires, and you (or your beneficiaries) get nothing.
Whole life insurance is another option. This type of policy provides coverage for your entire life. As long as you continue to pay the premiums, the policy will remain in force and your beneficiaries will receive the death benefit whenever you pass away. Whole life insurance is more complicated, as it mixes investing and insurance, and more expensive. Most people should choose term life insurance.
Ultimately, deciding which term life insurance policy to purchase is a personal decision. Everybody has different needs from their policy. Therefore, it’s important to think about your situation and choose a policy that makes sense for you, your family, and your budget. Unlike health insurance, you’re unlikely to use the benefits inside a life insurance policy and won’t hit any deductibles. Instead, your beneficiaries are able to get the proceeds from your life policy when you pass away.
Most policyholders buy coverage from an insurance agent directly, although you can also get quotes online. When shopping for life insurance coverage, you are not limited to the basic designations. Verify that anyone you work with has met state licensing requirements and is registered with the Nevada division of insurance so that you can feel confident in your selection of agent and policy. Not all providers are equal in the insurance industry, so do your research about insurance products.
10 Biggest life insurance companies in Nevada
Nevada life insurance companies ranked by premiums written in the state.
|2||New York Life||$95,335,547||6.45%|
|9||Aegon Us Holding||$49,970,191||3.38%|
How much life insurance do you need in Nevada?
The 90th percentile salary in Nevada is approximately $96,230. As mentioned, most financial advisors recommend that you purchase a life insurance policy that will cover your beneficiary for at least 10X – 20X your average annual income. In Nevada that works out to around $962,300 – $1,924,600. This amount will ensure that your loved ones can continue to pay their bills, settle your debts, and cover the cost of your final expenses.
You may also want to purchase additional life insurance to cover:
- Your mortgage (if you want your spouse and kids to be able to live in the home without worrying about mortgage payments)
- Children’s education costs (if you want your child’s education to be covered without any additional stress to your spouse)
- Bereavement therapy costs for your spouse and children (if you want them to spend time with a therapist after your unexpected death)
- Any other expenses that may be unique to your family or lifestyle
Nevada life insurance laws
There are a few unique features with respect to Nevada Life Insurance Laws that have an impact on your specific policy if you are a resident of the state.
Here’s what you need to know:
- Free look period: When you purchase a life insurance policy in Nevada, you can cancel the policy and get a full refund within the first ten days. This 10-day free look period allows the consumer to evaluate the policy and opt to continue or cancel it without penalty.
- No set claim settlement period: Nevada insurance laws do not mandate a specific period for settlement of life insurance claims. This means you will need to check with your insurer for their terms on claim settlement.
- Incontestability period: If you buy an insurance policy in Nevada, state insurance laws stipulate that it shall be incontestable after it has been in force for more than two years after its date of issue.
- Privacy protection: Nevada insurance laws prohibit insurance companies from sharing your personal information like medical records or credit information with other entities.
When it comes to life insurance, there are a lot of misconceptions out there. One of the most common is that life insurance is an investment. It’s not. Life insurance is protection. It’s there to provide your family with financial security in the event of your death. By signing up for a life insurance policy, what you’re really doing is making the commitment to protect your family even after you pass away.
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Joshua Holt is a licensed insurance agent (License #2785989) and founder of Biglaw Investor and Sidebar Insurance LLC, an insurance agency created by lawyers, for lawyers. His insurance expertise lies in the areas of life and disability insurance, particularly covering lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.