Best life insurance companies in Texas of November 2022

Discover the best life insurance companies in Texas, the average cost of coverage, and how state regulations can protect you.

Brian Acton

By

Brian Acton

Brian Acton

Contributing Reporter

Brian Acton is a contributing writer at Policygenius, where he covers insurance and finance. His work has also appeared in The Wall Street Journal, TIME, USA Today, MarketWatch, Inc. Magazine, and HuffPost. 

Edited byLogan Sachon

Logan Sachon

Senior Managing Editor, Life Insurance & Research

Logan Sachon is the senior managing editor of life insurance and research at Policygenius, where she edits life insurance content and leads life insurance surveys and data studies. As a journalist, her work has appeared in The Guardian, Business Insider, CNN Money, BuzzFeed, Money Under 30, VICE, New York Magazine, and elsewhere.

Published|4 min read

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Texas is a big state with lots of options for life insurance companies. With all the choices available to Texans, it can be difficult to find the right life insurance company for you.

We’ve assembled a list of the best life insurance companies in Texas, determined the average cost of coverage for Texans, and compiled the state regulations that affect your policy.

Best life insurance companies in Texas

Methodology: How we chose the best life insurance companies in Texas

We don't get paid for our company reviews and use an extensive rubric of criteria covering policy details, price, financial confidence, third-party ratings, and customer experience to assign unbiased ratings out of five stars. Any recommendations we make are based on internal and external expert opinions and data from our Policygenius Price Index, which uses real-time rate data from leading life insurance companies to determine pricing trends. Our ratings and reviews can help point you to an insurer you can rely on for your family’s financial protection, but the best life insurance company for you is dependent on multiple factors. A licensed agent at Policygenius can work with you through the application process so you’re getting coverage from the best insurer for your circumstances at the most competitive price.

→ Read more about our reviews methodology here

Best overall life insurance

Banner Life

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.7

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A+

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

No-med-exam option

30+ year terms

All 50 states

Why we chose it

Banner Life has some of the longest term lengths — up to 40 years — and most competitive life insurance rates available, even for people with a history of medical conditions.

Read our full Banner Life review
Pros and cons

Pros

  • Very competitive rates

  • Covers many health conditions

  • Term lengths up to 40 years

Cons

  • Strict temporary coverage eligibility

  • Reconsideration is paid for by the applicant

Banner Life offers competitive life insurance rates for Texans with a variety of health and risk classifications. People including smokers, millennials, people with mental health conditions, and more can get great rates with Banner Life.

The company has a high level of financial stability and a no-medical-exam option for people with straightforward health histories.

While all of the life insurance companies we recommend have high levels of financial security and customer satisfaction, Banner Life has an excellent NAIC complaint rating — 0.35, well below the industry average of 1.00.

Cheapest

Banner Life offers Texas applicants the most competitive rates in the Policygenius marketplace.

Best term life

Term life insurance is the most cost-effective option life insurance option for most people, and it's also the best life insurance option for most people. Banner Life offers the most affordable term policies for people who qualify for best rates and for people who don't.

Best whole life

MassMutual

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starHalf orange starEmpty gray star

3.8

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

NR

All 50 states

Why we chose it

MassMutual’s whole life insurance plan provides a lifetime coverage option that builds cash value with the potential to earn dividends.

Read our full MassMutual review
Pros and cons

Pros

  • Strong financial stability ratings

  • Potential for dividends

  • Offers a variety of permanent life insurance products

Cons

  • No option to skip the medical exam

  • High premiums

MassMutual's whole life insurance policies — permanent life insurance policies with a cash value component — pay out higher dividends to policyholders than other policies, making MassMutual the best whole life option for Texas residents.

Best for seniors

Prudential

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starHalf orange starEmpty gray star

3.4

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A+

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

No-med-exam option

All 50 states

Why we chose it

With nearly four million policyholders and 150 years to its name, Prudential offers competitive coverage options for seniors, as well as people with some of the most common medical conditions, including asthma, depression, and fibromyalgia.

Read our full Prudential review
Pros and cons

Pros

  • High financial ratings

  • Competitive underwriting for a range of medical conditions

  • Comprehensive online resources

Cons

  • High premiums

  • Mixed customer ratings

People 60 and above looking for the top life insurance companies in Texas can get great rates from Prudential, which also offers competitive rates to people with a wide range of medical conditions.

Best for young adults

Brighthouse Financial

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starFull orange star

5.0

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

No-med-exam option

Why we chose it

Brighthouse Financial offers competitive rates, comprehensive coverage, and application decisions in as little as 24 hours, making it our overall best choice for people who want to get life insurance coverage without having to take the medical exam.

Read our full Brighthouse Financial review
Pros and cons

Pros

  • Extremely affordable

  • Instant-decision applications

  • Best-in-class no-med option

Cons

  • Traditional term life not available in CA, IL, LA, ME, or NY

  • Term life applicants limited to ages 25-50

Brighthouse Financial offers Texans age 25 to 50 extremely affordable life insurance coverage. Some qualifying applicants can get up to $3 million in coverage in term lengths up to 30 years with SimplySelect, an accelerated underwriting policy that doesn't require the medical exam and is available exclusively from Policygenius.

Best for marijuana users

AIG

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.6

AM Best rating 

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

30+ year terms

All 50 states

Why we chose it

With competitive pricing and a range of flexible term periods for its Select-a-Term product, AIG is a solid option for many life insurance shoppers, including families.

Read our full AIG review
Pros and cons

Pros

  • Competitive pricing for all ages

  • Customizable term policies

  • Benefits common health conditions

Cons

  • Below average customer ratings

  • Cumbersome quote tool

Texas residents who are infrequent marijuana users can get non-smoker/non-tobacco rates with AIG. This means they'll pay 200% to 300% less than other companies that would categorize them as smokers — and give them higher rates.

Best for smokers

For Texans who smoke or use tobacco, Banner Life offers competitive rates. Plus, policyholders apply for lower premiums just one year after they quit smoking (many other insurers require two years or more).

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Comparing the best life insurance companies in Texas

Company 

Policygenius rating

Best for

Brighthouse Financial

5 / 5

Young adults

Banner Life

4.7 / 5

Overall, affordability, term life, smokers

AIG

4.6 / 5

Marijuana users

MassMutual

3.8 / 5

Whole life

Prudential

3.4 / 5

Seniors

What is the average cost of life insurance 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, however, is not one of the factors that affects your rates, except for policy availability.

Based on Policygenius data from November 2022, the average monthly premium for a relatively healthy 35-year-old in Texas buying a $500,000, 20-year term life insurance policy is $25.58 for women and $30.34 for men.

What happens if a life insurance company goes bankrupt in Texas?

Life insurance companies don’t usually go bankrupt. But if that happens, the Texas Life and Health Insurance Guaranty Association (TLHIGA) will cover affected policyholders and continue the policy as long as the premiums get paid. 

When an insurance company can’t meet its financial obligations, the TLHIGA or a court-appointed liquidator will notify affected policyholders. 

Texas covers up to $300,000 in life insurance death benefits and $100,000 in life insurance cash surrender value for policyholders impacted by a life insurance company’s failure. 

Only residents who live in Texas on the liquidation date are eligible for coverage through the TLHIGA. If a policyholder moves out of state, they will need to seek coverage through the guaranty association in the state where they currently reside.

How to find a lost life insurance policy in Texas

When someone dies, no matter which state they are in, their immediate family members and/or the administrator or executor of their estate can search for any life insurance policies or annuity contracts using the National Association of Insurance Commissioners’ Life Insurance Policy Locator Service

The Texas Unclaimed Property website can be used to find unclaimed benefits turned over to the state three years after someone’s death.

Ready to shop for life insurance in Texas?

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Texas life insurance laws

Life insurance companies in Texas must adhere to state guidelines that protect policyholders and dictate how policies function.

Free look period

New policyholders can cancel their life insurance and receive a full refund of their initial premium payment, provided they do so within 10 days of receiving the policy.

Guaranty Fund protection

The Texas Life and Health Insurance Guaranty Association guarantees coverage of up to $300,000 in life insurance death benefits and $100,000 in life insurance cash surrender value if a life insurance company is unable to meet its financial commitments.

Contestable period

In Texas, the contestability period for life insurance is two years from the effective date of the policy. During this time, insurance companies can deny a claim if they find evidence the policyholder lied on their life insurance application.

Time allowable to settle a claim

Life insurance companies in Texas must pay claims within two months of receiving proof that the insured has died. Claims start accruing interest from the day the life insurance company receives proof of death. 

Grace period for missed payments

Policyholders in Texas have a 31-day grace period for missed payments. This gives customers some extra time to pay their premium before the life insurance company terminates their coverage. 

Frequently asked questions

What is the number one life insurance company in Texas?

Banner Life is the top life insurance company in Texas for most people. The company offers Texas residents of many ages, health classes, and coverage needs competitive rates, plus no-medical-exam options for some qualifying applicants.

What is the life insurance free look period and grace period in Texas?

In Texas, you have a 10-day free look period to cancel your policy and get a full refund of any initial premium payments you made. You get a 31-day grace period to make a late payment before you lose coverage.

What types of life insurance are available in Texas?

Texans can get the most common types of life insurance available, term and permanent. They can also buy accelerated underwriting and final expense insurance policies, which don’t require a medical exam.

Author

Contributing Reporter

Brian Acton

Contributing Reporter

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Brian Acton is a contributing writer at Policygenius, where he covers insurance and finance. His work has also appeared in The Wall Street Journal, TIME, USA Today, MarketWatch, Inc. Magazine, and HuffPost. 

Editor

Senior Managing Editor, Life Insurance & Research

Logan Sachon

Senior Managing Editor, Life Insurance & Research

gray twitter icon linkgray linkedin icon link

Logan Sachon is the senior managing editor of life insurance and research at Policygenius, where she edits life insurance content and leads life insurance surveys and data studies. As a journalist, her work has appeared in The Guardian, Business Insider, CNN Money, BuzzFeed, Money Under 30, VICE, New York Magazine, and elsewhere.

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