Life insurance is a safety net that provides money to your beneficiaries should you pass away. Coverage is typically provided by employers, but you can also purchase a policy separately through a licensed insurance agent in Nevada. Whether you need it or not large depends on your circumstances. If you have dependents who rely on you for income, then life insurance should be a part of your estate and financial planning.
Life insurance in Nevada can help do the following things:
- Replace the income you generate with death benefits (non-taxable)
- Reduce the financial burden your family will face, having to go on without you
- Pay some of the debt you left behind—the mortgage, car payments, etc.
- Put your kids through school
- Pay for your estate taxes
- Pay for your funeral expenses
- Pay your estate taxes
There are three types of Nevada life insurance available:
Term Life – This kind of life insurance is less expensive than other types. It is designated for a certain period or up to a certain age—thus, the word ‘term.’ These policies last for anywhere from 1 to 20 years, or up to a specified age (such as 65 or 100).
Whole Life – This kind of insurance bestows lifetime coverage at premiums that do not increase with your age.
Universal Life – With this type of life insurance, both the premium amount and death benefits are flexible. You can change your premium payments and/or death benefits after buying the policy.
The most important thing to keep in mind is that your insurance plan should be structured based on your circumstances. Use the services of trained and licensed Nevada insurance professionals to find the most suitable plan for you. Check with the Nevada Division of Insurance to ensure that your agent and the company are both licensed to sell insurance in the state.