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Life insurance companies in Texas 2020

Which factors affect the average Texan's rates?

Updated

Fact checked

Life insurers in Texas consider a person’s total health and lifestyle when calculating policy rates, though the state has specific regulations in place to ensure consumers are treated fairly along the way.

How much does life insurance cost in Texas?

The average cost of term life insurance for a non-smoking 25 to 35 year old in Texas is about $23.38 to $26.11. However, note that living in Texas doesn’t necessarily significantly impact the cost of life insurance, so our estimate comes from national averages.

Compare life insurance rates

Compare quotes for life insurance policies starting at $15/month.

What risk factors will life insurance providers consider if I live in Texas?

In general, the healthier you are, the cheaper life insurance will be. Insurers consider the following factors when underwriting a Texan’s life insurance policy:

  • Age. In Texas, the average life expectancy is 78.9, though the number fluctuates almost 30 years between ZIP codes. Since risk of dying increases as you age, the closer you are to 78.9 the higher your rates will be.
  • Weight. Each insurance company has a body build chart that indicates healthy weights associated with each height. In Texas, 33% of people are obese, which means life insurance for these individuals may be more expensive.
  • Tobacco use. Life insurance for smokers is more expensive because of the associated health risks. 13.6% of females and 17.8% of males in Texas smoke. While life insurance may initially be more expensive for these individuals, some providers offer perks or incentives if you decide to quit.
  • Occupation. Riskier jobs lend pricer life insurance. In Texas, the most dangerous jobs are in agriculture, which account for more than half of the world’s deaths. Individuals in the fishing, aviation, construction, gas and oil industries as well as electricity technicians, garbage collectors and truck drivers can all expect to pay more for coverage.
  • Gender. Women in Texas are expected to live 5.2 years longer than men, so life insurance for men tends to be more expensive since there’s a higher chance the provider will end up paying the benefit.
  • Driving record. 3,721 Texans died from motor vehicle accidents in 2017. The more dings you have on your driving record, the pricier life insurance will likely cost because there’s a higher risk of a road-related fatality.
  • Lifestyle and hobbies. Most insurance companies want to know whether or not you participate in extreme sports; if yes, your policy rate will likely increase. In Texas, popular extreme sports include bull riding, cliff jumping and rock climbing.

What are Texas’s leading causes of death?

The leading cause of mortality in Texas is heart disease, which accounted for 45,346 deaths in 2017, according to a report from the CDC.

Ranked by frequency, people in Texas are mostly likely to die of:

  • Heart disease
  • Cancer
  • Stroke
  • Accidents
  • Chronic lower respiratory disease
  • Alzheimer’s disease
  • Diabetes
  • Septicemia
  • Kidney disease
  • Chronic liver disease/cirrhosis

Does Texas have any life insurance laws I need to be aware of before applying?

Our federal government gives states the power to regulate life insurance companies. Here’s the rundown on what to expect in Texas:

  • 30-day grace period.
    A policyholder has a safety net of 30 days to make up a missed payment before the provider is allowed to cancel the policy.
  • Prompt claim payouts.
    Life insurance providers in Texas are required to start settling a claim within 15 days of receiving the paperwork. If it hasn’t been paid out after 60 days, the insurer must pay accrued interest in addition to the basic benefit.
  • Bankruptcy back-up.
    The Texas Life, Accident, Health & Hospital Service Insurance Guaranty Association backs all current life insurance policies as long as your payments are up-to-date and the insurer was properly licensed. For death benefits, the maximum compensation is $300,000.
  • No bribing allowed.
    In Texas, life insurance agents aren’t allowed to offer you a free gift or discounted policy as a means of encouraging you to buy.

Compare life insurance providers available in Texas

Name Product Issue age Minimum Coverage Maximum Coverage Term Lengths Medical Exam Required
Prudential
18 - 75 years old
$100,000
$10,000,000
10, 15, 20, 30 years
Yes
Customize your term life insurance with a long list of life and disability riders. Get a free quote on Policygenius.
Transamerica
18 - 75 years old
$25,000
$10,000,000
10, 15, 20, 25, 30 years
Depends on policy
Purchase a policy worth anywhere from $25,000 to $10 million, with the option to skip the medical exam. Get a free quote on Policygenius.
MassMutual
18 - 80 years old
$2,000
$10,000,000
10, 15, 20, 25, 30 years
Depends on policy
Purchase term life insurance up to age 80 with Finder's #1 ranked company. Get a free quote from this A+ rated insurer on Policygenius.
AIG
AIG
20 - 85 years old
$5,000
$2,000,000
10, 15, 20, 25, 30, 35 years
Yes
Buy term life insurance all the way up to age 85, and choose a policy that lasts up to an incredible 35 years. Get a free quote on Policygenius.
John Hancock
18 - 65 years old
$25,000
$1,000,000
10, 15, 20 years
Depends on policy
Score a low rate on term life insurance with discounts and rewards for your healthy habits. Get a free quote on Policygenius.
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Bottom line

Life insurance in Texas tends to be cheapest for healthy individuals, though underwriters consider your lifestyle on the whole when underwriting a policy. Find a plan that best suits your situation by shopping the market to compare providers.

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