Best Life Insurance Quotes in Omaha, NE

How to choose life insurance in Omaha

Life insurance ensures your loved ones are financially protected in the event of your death. The death benefit pays for the cost of outstanding debts, mortgages, lost income, college tuition and final expenses. If someone depends on your income or your death would leave someone in a financial bind, you should purchase life insurance.

Taking out a life insurance policy is a good fit for parents with young children, heads of households and business owners. Those in Omaha with elderly relatives who may need care also benefit from the security provided by life insurance. People who are close to retirement and have healthy retirement funds may need less insurance, but many use the benefits as a financial planning tool because of the tax benefits.

Individuals in Omaha with a high net worth benefit financially because life insurance benefits are generally tax exempt. Life insurance policies can help pay for estate taxes so that the full inheritance is passed down to the beneficiaries.

Types of life insurance in Omaha

Before you start comparing life insurance policies, it’s helpful to know the different types available in Omaha. Some of the most common life insurance policies include:

• Term life insurance covers the insured for a predetermined period, usually between 10 and 30 years. It’s common for parents with young children to have this type of life insurance policy. Term life insurance has fixed premiums that are paid monthly.
• Whole life insurance provides coverage for the insured’s entire life. These policies have fixed premiums as well, but they tend to be more expensive than term life insurance because they have a guaranteed return on investment. Whole life policies also build up a cash value that can be borrowed from during the insured’s lifetime.
• Universal life insurance is a type of whole life coverage and has an investment savings element that earns interest based on the current market or minimum interest rate, whichever is greater. These policies are usually less expensive and more flexible than traditional whole life policies.

Nebraska Department of Insurance has a helpful guide that explains the type of life insurance you may need based on your age.

To determine the benefit amount you need, start by calculating the cost required to maintain the beneficiaries’ standard of living. The amount of life insurance coverage should be equal or close to the lost income resulting from your death for as long as the beneficiaries need to rely on that income.

The cost of life insurance in Omaha

The amount of your monthly premium depends on the type of policy, the term length and the death benefit provided by the policy. Insurance companies in Omaha also use an actuary to look at other factors that determine your costs. These factors include:

• Age
• Gender
• Medical history
• Current health
• Occupation
• Hobbies

Choosing a life insurance policy in Omaha

When choosing a life insurance policy, look for ones with fixed premiums so you know what to expect to pay each month. A reputable life insurance company should offer multiple policy options and be financially stable so it has the resources to pay the death benefit to your beneficiaries. Major carriers such as State Farm, MetLife, Prudential Financial and New York Life Insurance have more than 100 years of financial stability.

Before purchasing a life insurance policy, you can look up an insurance company’s financial strength with the five independent credit rating agencies: Standard & Poor’s, AM Best, Fitch, Kroll Bond Rating Agency and Moody’s. The agencies may not always give the same ratings to companies, so you should look at a company’s rating from two or more agencies.

Omaha residents can also use the search feature on the Nebraska Department of Insurance website to see if a life insurance company or agent is licensed with the state.