Texas Life Insurance

Texas life insurance laws deal primarily with claims issues. However, familiarizing yourself with some basic regulations is still key to making wise coverage decisions.

This page:

Briefly describes Texas life insurance regulations.

Explains the protection of the Texas Guaranty Association.

Links to more information about life insurance in Texas.

Premiums can vary by as much as 50%. Enter your ZIP code on the right, and with just one short form, you'll receive quotes from several insurers in your state. Start comparing quotes today:

Use InsureME to compare additional term life and whole life quotes, and get expert advice from an agent in your area, who can help you design a plan that's right for you. Click here to fill out a quick form.

Texas life insurance rights and regulations

The insurance industry in Texas is regulated under Title 17 of the Texas Insurance Code. These codes outline claims procedures and policy requirements for the benefit and protection of you, the consumer.

One such protection is the 30-day grace period on late premium payments required, by law, on all Texas life insurance policies. During this window, an insurer will not cancel the policy, and coverage will continue uninterrupted so long as the account is brought current.

Texas life insurance companies are also obligated to start the settlement process within 15 days of receiving written notice of a claim. A policyholder should be notified of the claim's status within another 15 days. (If more information is required in order to settle, the insurer should indicate this.)

In sum, an insurer should take no longer than 2 months to fully settle a claim. Interest will begin accruing on benefits that take any longer to settle.

However, Texas law extends some protections to insurers, too. Consumer misrepresentation on a policy or application, if discovered within the first two years of the policy, can result in its cancellation. The insurer won't be obligated to honor any claims.

A misstatement of age can be discovered at any time and will result in the reduction of death benefits to reflect the actual age of the insured.

Texas insurers are also exempt from paying claims made within the first year where suicide is the cause of death.

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If you are ready to apply for a Texas term life insurance policy, or if you just want a quick online quote, visit Insured Street now.
If you are not sure about what type of life coverage you want, you can also try InsureME. They will put you in touch with agents who can answer any questions that you might have.

The Texas Life Insurance Guaranty

If your life insurance company is licensed in Texas, your policy is backed by the Texas Life, Accident, Health & Hospital Service Insurance Guaranty Association. This organization helps protect you, the insured, should your insurance company go bankrupt.

However, there are restrictions on this protection. In Texas the compensation for lost death benefits is limited to $300,000, and compensation for lost cash surrender is limited to $100,000.

And your insurer must be licensed in Texas to qualify for the guaranty's backing. To check the status of an insurer, you can call the Texas Department of Insurance at 512-463-6169 or 1-800-252-3439.

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Apply for a quote with confidence at Insured Street
(for Texas term life insurance), or InsureME.
Your insurer will be licensed in Texas.

More TX life insurance help

If you want more help getting the best value on your TXlife insurance policy, start with our guide to term life insurance or sign-up for our free life insurance course (see below).

To find out more about TX life insurance laws and regulations, visit the official website of the Texas Department of Insurance.