Texas Life Insurance Review 2021


Texas Life Insurance is not one of our highest rated life insurance companies. You can check out our list of the best life insurance companies for what we think are better options.


Benefits explained

  • Some online policy management features: Texas Life policyholders can access basic policy management functionality through the online customer portal, such as payments and beneficiary changes.
  • Good financial strength rating: Texas Life has an A + financial strength rating from AM Best, which is impressive for a life insurance provider of its size.
  • Very few complaints from companies: According to the NAIC Company Complaint Index, Texas Life has historically had very few complaints, which is an indicator of good customer service.


Against explained

  • Does not sell individual life insurance policies: You can only purchase life insurance from Texas Life if your employer provides coverage as part of your benefits program.
  • Limited policy information on the website: There is very little information online about the policies Texas Life sells and the amount of coverage available.
  • Only a few plans available: Texas Life only sells two life insurance policies and does not offer term coverage, which can be a downside.


Available plans

Texas Life Insurance Company only sells permanent coverage, so term life insurance is not available. We should also note that Texas Life Insurance is not a mutual company and therefore policyholders do not have the option of receiving dividends.

One of the biggest drawbacks of Texas Life is that there is very little information online about the types of permanent coverage it offers. However, we scoured the website and finally identified two policy offers. Here are the two types of permanent life insurance that Texas Life sells:

Whole life insurance

Texas Life Whole Life Insurance provides coverage for your life, with a guaranteed death benefit paid up to the age of 121. This policy is available for people between the ages of 17 and 70, with maximum coverage of $ 200,000. It includes level premiums and a cash value component that grows at a fixed interest rate of 3%.

Once the cash value balance reaches a certain amount, you can withdraw some of the money and use it as a personal loan. If you surrender your policy, you will automatically receive the cash surrender value less the surrender charge.

The money you withdraw from your permanent policy’s cash value reserves can be used for any purchase, including tuition, credit card debt, or a down payment on a house.

Universal life insurance

Universal life insurance offers permanent coverage, but it is more flexible than a whole life insurance policy. Texas Life’s universal life insurance policy is available to people between the ages of 17 and 70, with coverage up to $ 200,000 and a guaranteed death benefit paid up to age 121.

However, this policy has flexible premiums and an adjustable death benefit that can be increased or decreased as needed. It also has a cash value that can be borrowed or used to change the amount or frequency of your premiums. Like whole life insurance, you will get cash value funds if you cancel the policy.


Jumpers available

Texas Life has a handful of life insurance endorsements that you can get for extra protection:

Terminal Illness Jumper

Every Texas Life life insurance policy includes a free terminal illness rider, which allows the insured to use up to 92% of their death benefit funds to pay for end-of-life expenses. ” he is diagnosed with a qualifying terminal illness. To qualify for this endorsement, a healthcare professional must provide documentation and certify that the terminal illness is expected to result in a prognosis of 12 months or less. There is also an administration fee of $ 150 in most states if you use this jumper.

Before applying to use a terminal illness rider, check what kind of documentation your life insurance company needs, as each company has different medical certification requirements.

Waiver of the Premium Rider

The premium rider waiver is available for policyholders aged 17 to 59. This rider will waive the premium if the policyholder becomes totally disabled for 180 days and is unable to work. It will also refund the premiums paid in the previous 180 days. This driver is not available in California or New York.

Accidental death benefit rider

The accidental death benefit rider is available for people aged 17 to 59. It pays the beneficiary of the policyholder double the death benefit if the policyholder dies of an accident within 180 days of the date of entry into force of the contract. In California, Washington DC, Delaware, Florida, North Dakota and South Dakota, the qualifying period is 90 days from the effective date of the policy.


Customer service

To reach the company, you will need to call (800) 283-9233 during office hours, Monday through Friday, 7 a.m. to 6 p.m. CST. You also have the option of submitting the online form. Or, if you are local to Texas, you can visit the company’s headquarters in Waco to speak with an agent in person.


Complaints index

Texas Life has very few complaints, as noted in the National Association of Insurance Commissioners (NAIC) Company Complaints Index. In 2020, the company had a complaint score of 0.11, which is lower than the industry average of 1.0. Since 2018, Texas Life has received only one complaint per year.

The NAIC Company Complaints Index scores insurance companies based on actual customer feedback regarding claims satisfaction satisfaction, premium pricing, agent interactions, policy cancellation issues, and more. If a business has fewer complaints than average, it’s a promising sign that customer service is good.


Third Party Notes

Because Texas Life is a small life insurance company, it doesn’t have as many third party ratings as the big players in the industry. However, Texas Life has an impressive A + financial strength rating from AM Best. This indicates that the business is financially stable and is able to fully reimburse its policyholders after a covered claim.

Texas Life is not rated in the 2020 JD Power Life Insurance Study, which rates the largest life insurance companies in terms of overall customer satisfaction. Criteria used in the study include factors such as communication, agent interactions, price, and product offerings.


Cancellation policy

You can cancel a Texas Life insurance policy at any time, but keep in mind that there may be a surrender charge depending on how long your policy is valid. When you cancel a permanent life insurance policy, the insurance company will issue you a check for the balance of the policy’s cash value less the surrender charge.


Price

Life insurance premiums are different for each individual. While Texas Life doesn’t have a detailed online quote tool, it does have a basic calculator that can help you figure out how much you might be paying based on your age and how much coverage you want.

For example, a 20 year old who does not smoke would pay $ 27.13 per month for a policy with $ 200,000 coverage. A 50-year-old who does not smoke would pay $ 67.63 per month for $ 100,000 of coverage. A 40-year-old who smokes would pay $ 96.13 per month for $ 200,000 coverage.

Another factor that affects your life insurance rate is your assigned sex at birth. Transgender or non-binary people can still qualify for life insurance, but most insurance companies only include “men” and “women” on request. If you identify as trans or non-binary, we recommend that you contact Texas Life to see how they handle the pricing of non-gender compliant applicants.


Competition

American-Amicable Life Insurance is another life insurance company comparable to Texas Life. Both companies are based in Waco, Texas, and have been in business for over 110 years.

In terms of coverage, American-Amicable sells term, whole and universal life insurance, while Texas Life only sells whole and universal life insurance policies. Additionally, American-Amicable sells individual life insurance policies, while Texas Life only sells voluntary life insurance policies to employers. Both companies sell life insurance through agents and don’t offer a lot of digital tools. Here’s how they stack up:

Texas Life Insurance American-friendly life insurance
Market share N / A N / A
Number of plans 2 3
Dividends for 2020 Not applicable Not applicable
Discounts on the wellness / incentive program to quit smoking Not applicable Not applicable
Method of service Agents Agents
Best AM ranking A + A
Price ranking About the average About the average
Trend in complaints 0.11 (below average) 2.65 (above average)

Final verdict

Texas Life Insurance is nothing special, as coverage is only available to employers and there are only two policies to choose from. Texas Life has excellent financial strength and fewer complaints than average, but there are much better providers that specialize in voluntary employee life insurance.



Methodology

Our ratings of life insurance companies are based on a quantitative approach that analyzes each insurer on its stability and reliability, customer service, claims experience, product line diversity and cost. We compare the terms of each type of policy offered – including available coverage amounts, optional endorsements and premium payment options – with those of other major life insurance companies. Finally, we take a look at how the company is rated by third party organizations to determine its reliability and overall reputation.

Investopedia requires editors to use primary sources to support their work. These include white papers, government data, original reports, and interviews with industry experts. We also reference original research from other reputable publishers where applicable. You can read more about the standards we follow to produce accurate and unbiased content in our editorial policy.

  1. NAIC. “Texas Life Ins Co National Complaint Index Report. “Accessed May 4, 2021.




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