State
Life insurance in Nebraska
Nebraska life insurance rules: $300,000 guaranty protection, a 10-day free look, a one-month grace period, the inheritance tax, and Omaha and Lincoln insurers.
Guaranty association protection
| Guaranty association | Nebraska Life & Health Insurance Guaranty Association |
|---|---|
| Life insurance death benefits | $300,000 |
| Cash surrender value | $100,000 |
| Annuity benefits | $250,000 |
| Health benefits | $500,000 for basic hospital, medical, surgical or major medical; $300,000 for long-term care or disability; $100,000 for other health insurance |
| Overall limit | $300,000 per individual ($500,000 when a health policy is involved) |
| Notes | Structured settlement annuity payees are covered up to $250,000; the annuity limit applies per owner across all annuities with the same failed insurer. |
| Website | nelifega.org |
Policy rules
| Free-look period | 10 days after delivery for individual life policies and annuities (Neb. Rev. Stat. §44-502.05) |
|---|---|
| Grace period | One month for any premium after the first year (Neb. Rev. Stat. §44-502) |
| Community property state | No |
Taxes
| State estate tax | No state estate tax |
|---|---|
| Inheritance tax | Yes; a county inheritance tax for deaths on or after January 1, 2023 of 1% above $100,000 for immediate relatives, 11% above $40,000 for remote relatives and 15% above $25,000 for others |
Lost policies and unclaimed money
| Unclaimed property office | Nebraska State Treasurer Unclaimed Property |
|---|---|
| Search unclaimed property | treasurer.nebraska.gov/up |
Regulator
| Insurance regulator | Nebraska Department of Insurance |
|---|---|
| Consumer hotline | 877-564-7323 |
| Website | doi.nebraska.gov |
| File a complaint | doi.nebraska.gov/consumer/file-complaint |
| Address | P.O. Box 95087, Lincoln, NE 68509-5087 |
How your policy is protected if an insurer fails
When a life or health insurer licensed in Nebraska fails and is ordered liquidated, the Nebraska Life & Health Insurance Guaranty Association protects Nebraska residents who own its policies and annuities. It usually transfers the policies to a healthy insurer or keeps them in force itself, within the limits of the state's Guaranty Association Act. Keep paying premiums so coverage continues.
| Coverage (per individual) | Nebraska limit |
|---|---|
| Life insurance death benefit | $300,000 |
| Life insurance cash value | $100,000 |
| Annuity contract (present value) | $250,000 |
| Structured settlement annuity | $250,000 |
| Basic hospital, medical, surgical or major medical | $500,000 |
| Long-term care or disability insurance | $300,000 |
| Other health insurance | $100,000 |
| Overall cap | $300,000 ($500,000 when a health policy is involved) |
Limits are as of October 4, 2026, from the association's FAQ. If you own both a life policy and an annuity with the same insolvent insurer, the most the association pays is $300,000 combined; if a health policy is also involved, the cap is $500,000. Annuity protection is $250,000 per owner per company no matter how many contracts you hold, and anything above the limits becomes a claim against the failed insurer's estate.
A guaranty association is not a government agency; it is funded by assessments on the insurers licensed in the state. Nebraska law prohibits advertising the association's existence to sell, solicit or induce the purchase of insurance, and it is no substitute for choosing a financially strong company. See state life and health guaranty associations and what happens if your life insurance company fails.
Who regulates life insurance in Nebraska
The Nebraska Department of Insurance licenses insurers and producers, reviews life and health products, runs an insurance fraud division and helps consumers with complaints. Nebraskans can call the Insurance Complaint Hotline at 877-564-7323 (in-state only) or the main line at 402-471-2201.
Free look, grace periods and policy rules
- Free look: every individual life policy and annuity, except credit life, must carry a notice that you can return it within 10 days of delivery and get your premium refunded if you're not satisfied for any reason. A returned policy is void from the beginning (Neb. Rev. Stat. §44-502.05). See the free-look period: returning a policy for a refund.
- Grace period: policies must give a one-month grace period for any premium after the first year. The insurer may charge interest of up to 6% a year for the days used (§44-502).
- Contestability: the same section requires that a policy become incontestable after it has been in force for two years during the insured's lifetime, except for nonpayment of premium and certain stated limitations.
Taxes, estates and community property
Nebraska has no state estate tax, but it is one of the few states with an inheritance tax, which is collected by counties. For deaths on or after January 1, 2023, the rates are:
- Immediate relatives (parents, grandparents, siblings, children and other lineal descendants, and their spouses): 1% of what each person receives above $100,000.
- Remote relatives (such as aunts, uncles, nieces and nephews): 11% above $40,000.
- Everyone else: 15% above $25,000.
Property passing to a surviving spouse is not taxed, and remote relatives and unrelated heirs under age 22 are exempt. Life insurance proceeds paid to the trustee of a trust are not subject to the tax unless the decedent's estate is the trust's beneficiary (§77-2002). An estate attorney can explain how proceeds paid directly to a person are treated. See state estate and inheritance taxes and life insurance.
Nebraska is not a community property state.
Finding a lost policy or unclaimed benefits
The Department of Insurance links to the free NAIC Life Insurance Policy Locator, which asks participating insurers to search for a deceased person's policies. Also check bank statements and mail for premium payments. Benefits no one claims are turned over to the Nebraska State Treasurer's Office, which runs a free unclaimed property search. If the insured lived or worked in Iowa, Kansas or Colorado, search those states too. See how to find a lost life insurance policy and unclaimed life insurance money and state unclaimed property.
Life insurers based in Nebraska
Omaha and Lincoln are home to several large insurers:
- Mutual of Omaha, headquartered in Omaha.
- Ameritas, a mutual holding company based in Lincoln.
- Assurity, based in Lincoln since 1890.
- WoodmenLife, a fraternal benefit society headquartered in Omaha.
- Physicians Mutual, headquartered in Omaha.
Where to get help
- Nebraska Department of Insurance: 877-564-7323 (in-state) or 402-471-2201, doi.nebraska.gov, P.O. Box 95087, Lincoln, NE 68509-5087. File through the department's complaint page, and see our guide to how to file a complaint against a life insurer.
- Nebraska Life & Health Insurance Guaranty Association: 402-479-7200, nelifega.org, 416 Valley View Drive, Suite 304, Scottsbluff, NE 69361.
- Unclaimed property: the State Treasurer's unclaimed property search.
Sources
- nelifega.org/FAQ
- nelifega.org/Contact
- nolhga.com/policyholders/how-youre-protected/
- doi.nebraska.gov/
- doi.nebraska.gov/consumer/file-complaint
- nebraskalegislature.gov/laws/statutes.php?statute=44-502.05
- nebraskalegislature.gov/laws/statutes.php?statute=44-502
- nebraskalegislature.gov/laws/statutes.php?statute=77-2002
- nebraskalegislature.gov/laws/statutes.php?statute=77-2004
- nebraskalegislature.gov/laws/statutes.php?statute=77-2005
- nebraskalegislature.gov/laws/statutes.php?statute=77-2006
- treasurer.nebraska.gov/up/
- mutualofomaha.com/about/company-profile
- ameritas.com/contact/corporate-offices/
- assurity.com/
- woodmenlife.org/about/history/
- physiciansmutual.com/web/about
Rules and limits were checked against these sources on the review date below. Laws change - confirm with the state insurance department or guaranty association.
Profile last reviewed October 4, 2026