Unlike other types of insurance, your location doesn’t matter very much when you buy life insurance, and your rates won’t change depending on where you live. What matters are details about you, including your age, medical history, your family’s medical history, habits, and the amount of coverage you want.
That’s why our recommendations for the best life insurance companies in Texas have so much in common with our overall rankings for the best companies. But company availability can change from state to state, and so can the laws that regulate life insurance.
Policygenius rating | Best for … | AM Best score | Number of complaints | Cost | ||
|---|---|---|---|---|---|---|
4.9/5 ★ | Overall, cheapest, term life, smokers | A+ | Lower than average | $ | ||
5.0/5 ★ | Young adults | A | Lower than average | $ | ||
4.9/5 ★ | Whole life | A++ | Lower than average | $$$ | ||
4.8/5 ★ | Marijuana users | A | Lower than average | $ | ||
4.1/5 ★ | Seniors | A+ | Lower than average | $$ |
Methodology
Why you can trust our picks
Our recommendations are based on internal and external expert analysis, as well as our Policygenius Life Insurance Price Index, which uses real-time data from leading life insurance companies to determine pricing trends. When reviewing a life insurance company, our editorial team uses a proprietary scoring rubric with five factors — price, policy details, financial strength, transparency, and customer experience — to assign an unbiased rating between one and five stars. These ratings are also taken into consideration as part of our company recommendations. We don’t get paid for our reviews.
Our reviews and recommendations can help you find a reliable insurer for your family’s financial protection, but the best life insurance company for you depends on multiple factors. A licensed agent at Policygenius can support you during the application process to ensure you get the right coverage for your circumstances at the most competitive price.
Best overall life insurance company in Texas: Banner Life
The best life insurance company in Texas is Banner Life. That’s because Banner Life offers cheaper-than-average, not just to applicants without a history of medical conditions, but also to smokers, and people with high-blood pressure or some other pre-existing conditions.
We also like that Banner Life has a no-medical exam option in Texas. If you have a straightforward medical record and can qualify, you can get a policy without having to go through the medical exam process, which will save a lot of time.
Cheapest life insurance company in Texas: Banner Life
The cheapest life insurance company in Texas is Banner Life, but it’s worth remembering that where you live doesn’t actually affect the cost of life insurance. Life insurance rates are based on your age, health, lifestyle, and the amount of coverage you buy.
One of the best ways to find cheap life insurance is by comparing quotes from multiple companies. You should also consider buying a policy while you’re relatively young, since your rates will only get more expensive as you age.
Best term life insurance in Texas: Banner Life
Banner Life is the best company for term life insurance in Texas. Not only does Banner Life offer affordable term life policies, but the company also offers term lengths between 10 and 40 years — that’s one of the widest ranges for term life on the market.
A term life policy is the best choice for most people, and it’s pretty straightforward. You buy a policy that covers you for a set amount of time (the term length), usually between 10 and 30 years, then if you die while the policy is active, your loved ones will receive a payment.
Best whole life insurance in Texas: MassMutual
MassMutual is our pick for best whole life insurance company in Texas. One reason we rank MassMutual so high is its Superior or A++ financial stability rating from AM Best. Whole life is a kind of permanent life insurance, so it’s guaranteed to pay out when you die. This makes financial stability important.
Along with the death benefit, your whole life policy can also gain interest (and even pay out dividends) over time. You can also withdraw or borrow from the cash value component of your policy.
Best life insurance for seniors in Texas: Prudential
The best life insurance for seniors in Texas comes from Prudential. According to our analysis, Prudential has some of the best rates for people over 60 — an age group for which it can be hard to find affordable life insurance.
Prudential also has affordable life insurance rates for seniors with age-related health problems, like osteoporosis, arthritis, and more.
Best life insurance for young adults in Texas: Brighthouse Financial
The best life insurance for young adults in Texas comes from Brighthouse Financial. We found that Brighthouse Financial offers affordable life insurance to applicants ages 25 to 50, as well as the option for a no-medical-exam policy worth up to $3 million in coverage for qualifying applicants.
Best life insurance for marijuana users in Texas: Lincoln Financial
If you use marijuana in Texas, you should consider Lincoln Financial for life insurance. That’s because Lincoln Financial treats marijuana users differently than tobacco users, which isn’t true of every company.
Marijuana isn’t legal in Texas, but you still have to be honest about marijuana use when you apply for life insurance coverage. Otherwise you may put your future beneficiaries at risk.
Best life insurance for smokers in Texas: Banner Life
We found that Banner Life offers some of the best life insurance rates for smokers. Smoking cigarettes or using other tobacco products will lead to expensive life insurance rates, but Banner Life lets you apply for cheaper premiums a year after you quit smoking.
How is life insurance different in Texas
While living in Texas won’t affect your life insurance rates, there are some Texas-specific laws and regulations that you should know about when you apply for coverage.
Contestable period: In Texas, the contestable period is two years. That’s the amount of time post-purchase that your company has to deny a claim or cancel your coverage if it finds out you gave false information when you applied for coverage.
Free-look period: The free-look period is the amount of time you have to cancel your life insurance policy and get a full refund. In Texas, it’s between 10 and 20 days after your policy starts.
Grace period for missed payments: You have 31 days in Texas to make a missed payment before your insurance company can cancel your policy.
Guaranty Fund protection: The Texas Life and Health Insurance Guaranty Association guarantees up to $300,000 of your life insurance coverage — and $100,000 if you surrender your policy for cash — in case your life insurance company becomes financially insecure and can’t meet claims.
Time allowed to settle a claim: Life insurance companies in Texas have to pay or deny claims within two months (60 days) after the claims process starts, or pay out interest on the claim.
Largest life insurance companies in Texas
You can get coverage from many of the largest life insurance companies in the country in Texas, though some might offer coverage through a subsidiary. Here are the largest life insurance companies in Texas by market share.
Company | Market share in Texas |
|---|---|
New York Life | 6.91% |
Northwestern | 6.22% |
MetLife | 5.34% |
Lincoln Financial | 4.48% |
Prudential | 4.30% |
MassMutual | 3.69% |
Pacific Life | 3.32% |
State Farm | 3.30% |
Minnesota Mutual | 2.97% |
Transamerica | 2.76% |
What happens if a life insurance company goes bankrupt in Texas?
Life insurance companies don’t usually go bankrupt, but if that happens, Texas has some protections in place so you don’t lose all of your coverage.
The Texas Life and Health Insurance Guaranty Association (TLHIGA) covers up to $300,000 of your life insurance benefits, and up to $100,000 in a policy’s cash surrender value if an insurance company fails.
The TLHIGA only covers you if you still live in Texas when your insurance company fails. If you’re not in Texas anymore, you can get coverage through your new state’s guaranty association.
How to find a lost life insurance policy in Texas
You can find a lost life insurance policy using the National Association of Insurance Commissioners’s Life Insurance Policy Locator as long as you’re an immediate family member or the executor of the deceased person’s estate.
The Texas Unclaimed Property website can be used to find unclaimed benefits turned over to the state three years after someone’s death.
Average life insurance rates in Texas
Life insurance rates depend on many individual factors, including your age, health, and the length and benefit amount of your policy. Where you live, though, isn’t one of the factors that affects your rates — except when it comes to company and product availability, and the rules around life insurance in Texas which companies are available.
Based on Policygenius data from 2023, the average monthly premium for a relatively healthy 35-year-old in Texas buying a $500,000, 20-year term life insurance policy is $27 per month ($307 per year) for women and $32 per month ($373 per year) for men.
Age | Gender | $250,000 coverage amount | $500,000 coverage amount | $1 million coverage amount |
|---|---|---|---|---|
20 | Female | $15 | $23 | $34 |
Male | $19 | $29 | $48 | |
30 | Female | $15 | $23 | $37 |
Male | $18 | $29 | $49 | |
40 | Female | $22 | $35 | $61 |
Male | $25 | $43 | $75 | |
50 | Female | $44 | $78 | $139 |
Male | $57 | $102 | $188 | |
60 | Female | $108 | $194 | $355 |
Male | $149 | $268 | $500 |
Methodology: Average monthly rates are calculated for male and female non-smokers in a Preferred health classification obtaining a 20-year $250,000, $500,000, or $1,000,000 term life insurance policy. Life insurance averages are based on a composite of policies offered by Policygenius from Brighthouse Financial, Corebridge Financial, Foresters Financial, Legal & General America, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica, and the Policygenius Life Insurance Price Index, which uses real-time data from leading life insurance companies to determine pricing trends. Rates may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 09/01/2024.
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