Nevada life insurance as necessityAs a resident of Nevada, you may wonder why there is a need to purchase a life insurance. As a backgrounder, Nevada is No. 39 on the life expectancy list in the United States with 78.7 years as the median age. The mortality rate is a bit high as over one thousand people aged 55 to 64 die annually. This rate doubles up when computation is based on every 100,000 residents in Nevada. The causes vary but the common factors contributing to early death are lifestyle and environment. Nevada is home to the city of Las Vegas the “Entertainment Capital” and so the conditions of people living within the area can be quite stressful, not to mention the extreme weather conditions throughout the year with extreme hot and cold spells when season changes.
Naturally, Nevada residents want to protect their families’ interests when, say, the head of the family dies either naturally or accidentally. This is where life insurance comes in. With protection coverage, a person is assured that his loved ones enjoy financial benefits when he passes away. Nevada insurance policy holders are assured that their beneficiaries will indeed receive the financial benefits since the Nevada Division of Insurance monitors the activities of various insurers. Notably, the Division makes sure that life insurance companies have sufficient assets to finance the insurance proceeds of their clients. Such protection strengthens the viability of insurance policies purchased by Nevada residents.
Adjustment of rates
Life insurance companies in Nevada have to undergo certain procedures before the state Division of Insurance before they can adjust their rates. There are committees that take care of this issue and before approving the adjustments, it is made sure the costs are reasonable. Any premium hike is well studied before given an approval. It is also ensured that the increase is necessary for the life insurance company to sustain its operation and financial capability to make good of its commitment to its clients. Hence all requests for rate adjustments are studied carefully first until it is proven that the changes in premiums are affordable for Nevada people.
Presently there are over two thousand licensed insurance companies in Nevada. This goes to show that the state is economically healthy and that people are aware of the advantages of having a coverage policy. Life insurance business here is an indication of active financial activity among different industries and businesses.
Life insurance in Nevada is no different from what other states offer. But in addition to the general offers such as term, whole and universal life insurance policies, there is also a policy called juvenile life insurance which has the following features:
- It is a permanent life insurance for minors and provides savings and future benefits during the lifetime of the insured youth.
- It is different from child life insurance which is intended to defray expenses for funeral costs at a time of untimely demise of a child.
- Period of payment is usually within five years.
- No income tax is levied on the face value of the policy.
- Cash value is not liable for any debts or lawsuits.
Because of the way the Nevada Division of Insurance looks after its constituents, it can be said that this state has one of the most efficient life insurance systems in the country.