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.  Here are the most important rights of policy holders in Texas.

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:

Grace Period

In Texas, policy holders 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 a 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.

Free Look


There is no mandated free look period in Texas.  The free look period allows a policy holder to review a policy for a set number of days after policy delivery before all payment 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

Telephone:  512-476-2101


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

Telephone:  855-839-2427