Best Life Insurance Companies in Texas

If you have a life insurance policy, you can rest assured that your loved ones will be financially supported after you pass. MoneyGeek used gender, age and smoking history as factors to analyze life insurance quotes in Texas from various insurers. Along with finding average quotes from various insurers, we also rated the best life insurance companies in Texas and found the most affordable options across different categories.

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Best Cheap Life Insurance in Texas

The less insurance coverage you purchase, the lower your policy's monthly premiums will be. In MoneyGeek's analysis, MassMutual offered the most affordable rates for a policy covering $250,000 in Texas with an average monthly premium of $9.99 for men and $9.41 for women.

While a policy with less coverage can be cheaper, it’s also important to note that it might not cover all of the necessary expenses after death. If the family members of the policyholder are young, they may need enough coverage to make up for a loss of income, or to pay off any debts, bills or other expenses. It’s crucial to weigh your financial circumstances before you choose a life insurance policy. This will ensure your family members have enough financial support after your passing.

After considering Texas' cost of living, average incomes and debts, average age and other factors, MoneyGeek recommends a life insurance policy worth $719,000 for the average Texan to adequately support ongoing expenses after death.

MassMutual and Nationwide are the most affordable life insurance companies in Texas for a policy offering $719,000 in coverage. For a man, MassMutual's average rate of $17.70 per month is the most affordable. For the typical Texan woman, Nationwide's quote of $15.28 per month on average is the cheapest.

Best Cheap Life Insurance Companies in Texas: Males

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  • Company
    $250K Coverage
    Suggested Coverage: $719k
  • MassMutual
    $9.99
    $17.70
  • Nationwide
    $10.83
    $18.04
  • Mutual of Omaha
    $10.84
    $18.75
  • Transamerica
    $14.13
    $29.03
  • State Farm
    $18.40
    $36.48
  • AAA
    $19.21
    $43.56
  • Progressive Life
    $21.54
    $47.18
  • Prudential
    $25.34
    $55.33
Best Cheap Life Insurance Companies in Texas: Females

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  • Company
    $250K Coverage
    Suggested Coverage: $719k
  • Nationwide
    $10.63
    $15.28
  • Mutual of Omaha
    $10.65
    $15.41
  • MassMutual
    $9.40
    $15.44
  • Transamerica
    $12.34
    $24.44
  • State Farm
    $19.57
    $33.05
  • AAA
    $16.63
    $36.91
  • Progressive Life
    $16.50
    $38.99
  • Prudential
    $18.59
    $51.01

Life insurance policy costs were determined by gathering 10-year term quotes from major life insurance companies in Texas using average buyer profile statistics in Texas, including average age of 28, average weight of 197 pounds for males and 156 pounds for females, and an average coverage need of $719,000.

What Is the Average Cost of Life Insurance for Companies in Texas?

In Texas, life insurance rates can vary greatly, and gender influences the cost of insurance policies. Since women tend to have longer lifespans, their life insurance quotes usually are cheaper.

Female policyholders pay an average monthly premium of $15.96 for a policy with $250,000 in coverage in Texas. On the other hand, males pay about $18.28 per month, $2.32 more than females pay on average.

Purchasing the MoneyGeek recommended coverage of $719,000 in Texas can increase your monthly premiums. The average quotes for women increase to $33.36 per month, a monthly increase of $17.4. Men pay $20.68 more for a monthly premium of $38.96 on average.

Most Popular Life Insurance Companies in Texas

You should choose a financially stable company that can pay insurance claims when needed. A company's market share can help you determine its overall stability as larger companies are typically more stable.

A company’s market share is the number of premiums written by that company divided by the total number of policies written in the state. The top seven life insurance companies in Texas account for roughly 35% of the state’s market share. Northwestern Mutual is the most popular insurer, with a 7.02% market share.

Most Popular Life Insurance Companies in Texas

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  • Company
    Market Share
  • Northwestern Mutual
    7.02%
  • New York Life
    6.41%
  • Lincoln Financial
    5.57%
  • State Farm
    4.41%
  • Pacific Life
    4.26%
  • MassMutual
    3.93%
  • Transamerica
    3.52%

Life insurance market share data for Texas is based on total premiums written in the state and was sourced from 2020 S&P Global Data reports.

Which Companies Have the Best Life Insurance Rates for Young People in Texas?

Since age is one of the factors that influences the cost of a life insurance policy in Texas, young policyholders generally pay lower life insurance premiums since they are at lower risk. By buying a life insurance policy at a younger age, you could save a significant amount of money.

The Texas insurers that offer the most affordable life insurance premiums on average for young individuals are:

  • Transamerica: $13.49 per month
  • Mutual of Omaha: $15.36 per month
Best Life Insurance Companies for Young People in Texas

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  • Company
    Monthly Cost
  • Transamerica
    $13.49
  • Mutual of Omaha
    $15.36
  • MassMutual
    $15.69
  • AAA
    $16.50
  • Prudential
    $18.14
  • Nationwide
    $18.59
  • State Farm
    $22.07
  • Progressive Life
    $22.86

Rates were determined by analyzing quotes for a 25-year-old male non-smoker in Texas who is 5 ft 10 inches and 167 pounds that purchases a 20-year term contract at the average coverage need of $270,000. We chose a 20-year term to provide a longer coverage period for a younger buyer.

Which Companies Have the Best Life Insurance Rates for Seniors in Texas?

While young policyholders enjoy lower rates in Texas, seniors often pay higher monthly premiums for their life insurance policies because insurance companies categorize seniors as high-risk policyholders.

However, seniors often need less insurance coverage as they rarely need to support any dependents and may only need coverage for burial expenses or other unpaid debts and bills. That said, as a senior in Texas, you can still find life insurance providers quoting affordable rates.

MoneyGeek compared policies providing $82,000 in coverage for seniors in Texas and found that the following two companies offer the most affordable rates:

  • MassMutual: $38.37 per month
  • Mutual of Omaha: $43.47 per month
Best Life Insurance Companies for Seniors in Texas

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  • Company
    Monthly Cost
  • MassMutual
    $38.37
  • Mutual of Omaha
    $43.47
  • Nationwide
    $44.19
  • State Farm
    $51.50
  • Progressive Life
    $69.17
  • AAA
    $72.34
  • Transamerica
    $78.99
  • Prudential
    $79.39

Rates were determined by analyzing quotes for a 60-year-old male non-smoker in Texas who is 5 ft 10 inches and 197 pounds that purchases a 10-year term contract at the average coverage need of $82,000.

Which Companies Have the Best Life Insurance Rates for Smokers in Texas?

If you smoke, your life insurance premiums will be higher than what an average individual pays. And, if you're a senior male who smokes, your life insurance premiums can be very high, considering the extremely high health risks associated with your profile. However, if you're a smoker, you can still find an affordable quote from an insurer by comparing the prices from various insurers in Texas.

The following Texas life insurance companies offer the most affordable rates for smokers in the state:

  • MassMutual: $114.12 per month
  • State Farm: $114.30 per month
Best Life Insurance Companies for Smokers in Texas

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  • Company
    Monthly Cost
  • MassMutual
    $114.12
  • State Farm
    $114.30
  • Nationwide
    $114.98
  • Transamerica
    $127.48
  • Mutual of Omaha
    $127.81
  • Progressive Life
    $178.57
  • Prudential
    $189.82
  • AAA
    $209.79

Rates were determined by analyzing quotes for a 28-year-old male smoker in Texas who is 5 ft 10 inches and 197 pounds that purchases a 20-year term contract at the average coverage need of $719,000. If you are a smoker, we suggest buying a longer-term (20-year) policy to provide longer coverage as rates for smokers increase dramatically as you age.

Texas Life Insurance Laws You Should Know

To find the best and affordable life insurance rates in Texas, you need to compare quotes from several insurers. You should also get acquainted with the state's life insurance laws and terms, as they can vary from state to state.

We have explained a few important terms that you need to know before purchasing a life insurance plan.

  • Free examination period: Otherwise called the free look period, this is the time you get to analyze your policy before committing to it entirely. You can use this time, usually 10 days, to examine the policy and decide whether you want to keep it. If dissatisfied, you can terminate the policy without facing penalties and get a full refund.
  • Grace period for missed payments: The Texas Insurance Code mandates all insurers to give policyholders at least one month following a due date to settle any pending payment without penalty. During this period, your policy will remain active and your provider cannot cancel it for missing the payment.
  • Time allowable to settle a claim: Once the insurance carrier receives a claim, they will have 15 days to review and acknowledge the request. Once they receive all documents related to a policyholder’s death, they’ll have 15 days to approve or deny the claim. Once approved, the company must pay the claim to the beneficiary within five business days.
  • Contestable Period: This is a two-year term during which a life insurance company may review the policyholder’s policy and refuse to pay claims if they find inaccuracies or misinterpretations. The insurer may deny payment if you withhold information about your health or lifestyle, which resulted in your death. The claim can be denied for deaths that happened due to suicide.

Methodology

MoneyGeek considered several factors before recommending $719,000 in life insurance coverage for the residents of Texas. To establish the suggested coverage, we used data from the U.S. Bureau of Economics and collected the state's average mortgage debt, personal debt and age. Remember that each buyer is unique, and they may require more or less coverage depending on their circumstances.

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.


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