Short answer: Nebraska life policies must give one month of grace for any premium after the first year, with optional interest of no more than 6% a year, and the policy stays in force during grace. A policy loan default can't void the policy until one month after the company mails notice to the insured and any assignee.
This guide is general consumer information for Nebraska life insurance buyers. It isn't legal advice or a coverage determination. Policy wording, underwriting and the statutes linked below control.
Grace period after year one
Neb. Rev. Stat. 44-502 requires that the insured is entitled to a grace of one month for any premium after the first year, subject at the company's option to interest not in excess of six percent per annum for the grace days. The policy continues in force; if it becomes a claim during grace, overdue premiums with interest may be deducted.
Policy loans and default notice
The same section says failure to repay a policy loan or interest won't void the policy unless total indebtedness equals or exceeds the loan value, and not until one month after notice has been mailed to the last-known address of the insured and any assignee. If you borrow against cash value, keep your mailing address current with the insurer.
Insurer financial strength
If you have questions about an insurer's financial strength or solvency in Nebraska, contact the Nebraska Department of Insurance.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Nebraska.
Frequently asked questions
What's Nebraska's life insurance grace period?
One month for premiums after the first year, under Neb. Rev. Stat. 44-502, with interest capped at 6%.
Can a Nebraska policy loan default void my policy right away?
No. Not until indebtedness reaches the loan value and one month after notice is mailed to you and any assignee.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.