Lone Star State citizens! Everything in Texas may be bigger, and the book of state laws on life insurance is no exception. You won’t need to take up your whole day reading it though. Life Ant has parsed through the details to bring you what you most need to know regarding your life insurance rights. Continue reading below to learn life insurance rules and regulations in Texas and then see what the best life insurance companies in Texas are.
Texas Life Insurance Rules and Regulations
Life insurance laws are regulated by the State Statutes in Texas. Here are some things you should be aware of:
In Texas, policyholders have 30 days minimum in Texas after a missed payment to submit the premium to the insurance company before they lose coverage. If the insured person dies during this period, the insurance company is still obligated to make payment in full to the beneficiaries. The grace period prevents a policy from lapsing due to a slightly overdue payment, which helps protect beneficiaries from lost claims and owners from subsequent underwriting.
There is no mandated free look period in Texas. The free look period allows a policyholder to review a policy for a set number of days after policy delivery before all payments become final. If the policy owner decides during this period that she/he does not want the policy, the policy can be returned for a full refund, with no fees or penalties.
Protection Of Death Claim From Bankruptcy
While it isn’t common for an insurance company to declare bankruptcy, it can happen. Through the Texas Life, Accident, Health & Hospital Service Insurance Guaranty Association, Texas has a backup plan for beneficiaries and policy owners. The Guaranty Association will protect up to $300,000 of lost death claims, and $100,000 of lost cash surrender value if a company becomes insolvent. These limits are regardless of the size of the policy and the number of policies.
Texas Life & Health Insurance Guaranty Association
515 Congress Avenue, Suite 1875
Austin, TX 78701
Timely Payment On Claims
Texas wants all claims to be settled quickly and fairly. To encourage this, they mandate that all claims must begin to be processed within 15 days of the insurance company receiving the claims paperwork. If a claim takes longer than 60 days to be settled, Texas also requires that interest accrue on the claim and be paid to the beneficiaries.
Texas Department of Insurance
10 Best Life Insurance Companies In Texas
1. Northwestern Mutual
One of the largest life insurance companies in Texas is Northwestern Mutual. Founded in 1859, Northwestern Mutual offers customized life insurance policies that are designed to fit your needs. Because Northwestern Mutual is a mutual company, they don’t have to report to shareholders. Instead, they get to report to policy owners, which helps make the company better. Northwestern Mutual understands and takes time to answer every question to help you understand. They offer term life insurance, whole life insurance, and universal life insurance. This company wants to guide you in making the best financial decisions, so your loved ones are taken care of after your death.
The largest life insurance company in Texas, Metropolitan Life (MetLife), offers term life insurance and permanent life insurance. When you become a MetLife policyholder, you get the MetLife Advantages. These advantages come at no additional costs and include funeral discounts, will preparation, digital legacy, and retirement planning. Another advantage is travel assistance and portability. Portability will help prevent gaps in your coverage. Our favorite MetLife Advantages is the available support for your loved ones when you pass. They will help find a grief counselor and help make beneficiary claims easier. MetLife Advantages are the main reason MetLife is one of the top best life insurance companies in Texas.
3. American International Group (AIG)
American International Group, also known as AIG, is the best life insurance company for whole life insurance policies. AIG offers guaranteed whole life insurance. It doesn’t matter your age between 50-80, they will cover you. Part of their guarantee is up to $25,000 in coverage and premiums that never increase. There is no need for a medical exam or medical questions. AIG also offers term life insurance and universal life insurance. The universal life insurance is also available in guaranteed universal, index universal, and variable universal varieties. The guarantee life insurance is one reason American International Group is one of Texas’s best life insurance companies.
4. New York Life
As the second-largest life insurance company in Texas, New York Life has been helping people for 175 years. They offer four life insurance types, including term life, whole life, universal life, and variable universal life insurance. New York Life is a mutual company that is focused on the long term. They are financially strong and offer a ton of advice on which policy might be best for you. This extra support makes New York Life one of the best.
5. Lincoln Financial
Getting coverage with Lincoln Financial is very easy. You can get life insurance through Lincoln Financial for less than the cost of a monthly utility bill. Lincoln Financial helps its customers estimate how much coverage their family will need if the policyholder was to pass away. The company wants to set up families for success, not failure. Lincoln Financial offers three types of life insurance include term, universal, and variable universal. The application process is streamlined and straightforward. Their customer service makes them one of the best insurance companies in Texas.
6. Ladder Insurance
Another company that has excellent customer service for Texans is Ladder Insurance. Their application is easy, precise, and practical. Online customer service agents are thorough and friendly. The starting rate for life insurance through Ladder Life is $15 a month. Ladder Life is one of the top five companies for direct term life insurance. A completely customizable plan that you adapt is Ladder Life’s strength. If you are between the ages of 20 and 60, check out Ladder Insurance. The application will only take five minutes, and you can have life insurance without leaving the comfort of your couch.
7. Fabric Life
Do you have a family you worry about? Fabric Life is the best life insurance in Texas for families. They offer term life insurance for coverage from $100,000 to $5 million. Customer service is available through its website and app. You can get life insurance without a medical exam when using Fabric and avoid the annoying insurance salesman when purchasing through Fabric. Affordable premiums, easy application, almost instant approval are excellent features offered through Fabric Life. Other tools available to Fabric policyholders include wills and tools to organize your family’s finances. Fabric’s commitment to family is why it is a great insurance company.
8. Bestow Life
Another one of the top five direct term life insurance companies, Bestow, has the fastest approval time in Texas. Premiums are as low as $8 a month with coverage from $50,000 to $1,000,000. You can’t go to a Bestow insurance agent because it runs entirely online, which is why you can get such quick quotes. After approval, you can have a policy in 5 to 10 minutes. If you are between the ages of 21 and 55 and don’t want to spend an entire day shopping for life insurance, check out Bestow Life. Its quick response is one reason it is one of the best insurance companies in Texas.
9. American Automobile Association (AAA)
Did you know AAA, an automobile insurance company, offers life insurance? It sure does! If you are looking for a budget-friendly policy that is either whole life, universal life, or term life insurance, AAA may be the answer. You can apply online for coverage or work with a customer service representative to build a customized policy. AAA has the most flexibility when it comes to life insurance in the state of Texas.
10. State Farm
State Farm is the best company for term life insurance in Texas. The terms offered for term life insurance are 10, 20, or 30 years and can be switched to whole life insurance at any point. Most policies begin at $10 a month. State Farm is one of the few companies that will insure someone at 18. If you are between 18 and 75 and want term life insurance, State Farm may be the best company for you. State Farm’s affordable premiums make them one of the best life insurance companies in Texas.