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Texas Life Insurance


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Like everything else in Texas, the state laws on life insurance also seem to be bigger than life. However, you don’t need to lose sleep over reading and comprehending their meaning as NoExam.com is here to help you with that.

We have reviewed the statutes and rules so that you can have straightforward and factual information. The following are the prominent features of life insurance policies in Texas.

Texas Life Insurance Quotes

As life insurance companies offer the same premium prices across all the states in the US, there is no particular benefit attached to residing in Texas. However, several other factors may affect the premium amount paid by you.

One of the biggest factors which affect the premium is your overall health. If you are in good health and do not have any significant ailments, you can qualify for the best rates. If you are in poor health, you will pay a higher rate. For example, people suffering from obesity are likely to pay a higher rate.

Similarly, if you have a family history of heart disease, diabetes, cancer, or mental disorders, you may be charged a higher rate. Lifestyle choices such as tobacco use or smoking will mean you pay more for life insurance.

The term period of life insurance policy also affects the price. Policies with longer terms are more expensive than the policies with shorter terms.

For example, the annual premium for a 30-year term policy will likely be higher than the annual premium for a 10-year policy. Permanent policies such as whole life insurance and universal life insurance are more expensive than term policies with the same coverage amounts.


A 31-year-old Houston woman weighing 131 pounds and having a height of 5’2” would be able to get $900,000 of whole life insurance coverage at a cost of about $1,005 a year.

For the same amount of coverage ($900,000) for term life insurance, the same woman would have to pay about $546 a year in premiums. If she has a family history of liver or heart disease, the premiums would be higher.

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Texas Life Insurance Laws

Life insurance in Texas is regulated by the State statutes. Here are the main protections you need to keep in mind:

Grace Period

Life insurance policyholders in Texas have 30 days after the due date of premium payment to submit the payment and avoid losing coverage.

However, if the insured person dies during the grace period the insurance company is still required to make full payment to the beneficiaries. The grace period is intended to prevent the policy from expiring due to a missed payment. It also helps protect beneficiaries from losing their payout. The grace period also acts as a buffer for owners against subsequent underwriting.

Free-Look Period in Texas

Texas statutes do not require a free-look period. The free-look provision allows prospective policy buyers to cancel a policy for a full refund within the first 30 days. The payment becomes final only after the expiry of the free-look period.

If the person decided to cancel the policy during the free-look period, they are entitled to a full refund without any fees or penalties.

Protection of Death Claim from Bankruptcy

Although an insurance company rarely has to declare bAlthough an insurance company rarely has to declare bankruptcyankruptcy, the Texas Life, Accident, Health & Hospital Service Insurance Guaranty Association offers protection for policy owners and beneficiaries.

The Guaranty Association protects life insurance owners for up to $300,000 of death claims and up to $100,000 in lost cash surrender value in the event of an insurance company going bankrupt. These limits are set irrespective of the size and the number of policies.

Texas Life & Health Insurance Guaranty Association
515 Congress Avenue, Suite 1875
Austin, TX 78701
Telephone: 512-476-2101
Website: www.txlifega.org

Timely Payment on Claims in Texas

Texas aims to have companies settle all their claims quickly. For achieving this target, the state makes it mandatory for the insurance companies to begin the claim processing within 15 days of receiving the claims paperwork.

If the company takes more than 60 days to settle the claim then it may be held liable for paying interest on the claim to the beneficiaries.

Texas Department of Insurance

List of Life Insurance Companies With Texas as the State of Domicile