Nebraska Life Insurance

In this article...
  • Find out about the regulations governing life insurance in Nebraska, including incontestability, grace periods and where to access information and assistance.

Purchasing life insurance is an excellent way to protect your dependents financially, and insurers have to follow certain regulations. The rules can vary significantly from state to state, and understanding your state's life insurance regulations can help you choose a responsible and reputable insurer. This article covers some specific rules governing life insurance in Nebraska. 

Nebraska Life Insurance Rules and Specifics

The Nebraska Department of Insurance regulates the state's life insurance industry under Chapter 44 of the state's statutes. Below, you can find some of the specific rules that all companies offering life insurance products in Nebraska must follow.

Free Look Period

All life insurance policies issued in Nebraska must include at least a 10-day free look period, excluding credit life plans. The free look period lets you terminate your coverage without paying any termination fees and receive a refund for any premiums paid. You can return your policy for any reason during the free look period. 

Grace Period

All Nebraska life insurance companies must allow a grace period of at least a month for life insurance products. This grace period excludes the first month's payment and ensures that enrollees don't lose their coverage if they make premium payments late. However, companies can charge interest up to 6% per annum on late premium payments. They can also deduct outstanding premium payments plus accrued interest from any payouts claimed before settling the missed payment.


According to Nebraska law, life insurance policies become incontestable two years after issue. This means that your insurance provider can't contest a claim after this time unless you fail to pay your premiums. However, companies may contest claims in the following circumstances unless stated otherwise in the policy:

  • Death due to war, provided the contest is not discriminatory and is in the best interests of the insurer's policyholders
  • Death due to aviation, unless you died traveling on a commercial flight on an established route

Insurance companies can't contest claims due to aviation if you purchased a rider specifically covering aeronautics. Insurers must also pay the death benefit if you misstated your age on your initial application. However, they can adjust the payout to reflect what you would have received for the premiums you paid considering your correct age.

Life Insurance Resources in Nebraska

The Nebraska Department of Insurance website is an excellent resource for Nebraska residents who want to find out more about life insurance regulations. You can use the online tools to find out if a potential insurer has ever had action taken against it or to file a complaint against your existing insurer. The department also has a Consumer Affairs Division that provides Nebraskans with life insurance advice and education. 

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