Texas Life Insurance

Many Texans are raising up families, supporting extended family, or looking ahead to a future family. If the unthinkable should happen, you need to know your family will have the resources to carry on after you’re gone. To that end, The Simple Dollar has compiled the essential facts, stats, regulations, and resources consumers need to be empowered about their life insurance choices and to take hold of their legacy.

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Stats in Your State

Below you’ll find visualizations of some essential life insurance statistics to illustrate the state of health insurance across Texas. Too many families are at risk without their primary breadwinner insured, so now is the time to consider purchasing a policy, or taking a second look at your current policy to make sure it’s up to snuff.

Life Insurance in Texas

Texas is known for doing everything bigger -- the same is true for the life insurance industry. In 2011, the industry paid benefits topping out at nearly $21 billion. The total life insurance coverage? $2 trillion. Find out how you stack up against your Texas neighbors.

Number of Licensed Life Insurers 556
Total Life Insurance Coverage $2 trillion
Average Policyholder Coverage $115,000 per life insurance policyholder*
Amount Paid Out in 2011 $21 billion**
Amount of Paid Annuity Benefits in 2011 $4 billion
Source: ACLI.com

*Based on individual life insurance policies
**Includes death benefits, matured endowments, policy dividends, surrender values, and other payments.

Life Insurance Administered Programs

More than 50,000 Texas veterans, government workers, and former servicemen and women use some form of state or federally administered life insurance programs.

The Life Insurance Industry: Beyond Insuring You

Life insurance is meant to provide financial support when you lose a loved one; the impact of the life insurance industry doesn't stop there though. Like many other states, the industry adds to the local job sector and economy. Here's what that looked like in 2011.

Job creator 166,000 jobs created
Invested in Texas 's Economy $376 billion was invested by life insurance companies
Source: ACLI.com

Rules in Your State

Life insurance and health insurance in Texas are regulated alongside one another – many of the same regulations apply to both fields of insurance.

From the Texas Department of Insurance:

Prompt Payment of Death Benefits

Insurance companies must acknowledge your life insurance claim within 15 days and either pay it within 45 days or explain why the payment is delayed. For an individual life policy, the company must also pay interest on a death benefit from the time the company receives the proof of loss statement to the time the company pays the death benefit.

Missing a Premium Payment

Most policies have a 31-day grace period after your premium’s due date during which you may pay with no interest charged. If you die during this period, your beneficiary receives the death benefit minus the premium owed.

If Your Policy Lapses

To reinstate a lapsed policy, you must pay some or all of the overdue premium with interest and repay or reinstate any loans obtained using the policy as collateral. Most companies will reinstate a policy within a five-year period, but may require you to answer additional health questions or take another medical exam.

Life Insurance Premiums: Rate Increases and Adjustments

Information regarding rate increase filings subject to Federal Health Reform
This resource outlines the upcoming changes to rates and premiums as a result of the Affordable Care Act.

Representatives & Resources in Your State

To seek support on an issue, file a complaint against your insurer, or to just get a better grasp on the rules and regulations in your home state, check through the following Texas resources and regulatory bodies.

Texas Department of Insurance Ombudsman
P.O. Box 149104
Austin, Texas 78714-9104
Phone: 512-475-1776
Fax: 512-475-2025

Texas Department of Insurance
333 Guadalupe
Austin, TX 78701
1- 800-252-3439
Get Directions
Consumer Resources
TDI Contact Information

Filing a Complaint and Complaint Resources
Complaint Resources and Indexes
The Texas Department of Insurance provides a consumer-help resource for filing complaints against insurers for property, title, health, and worker’s compensation claims. Use the above link to learn more about how TDI can help you with your complaint against an insurer.

Find out how to track down unclaimed life insurance benefits here, here, and here.