Affordable Life Insurance Options for Texas Families
For a lot of Texas families, the question isn't whether life insurance matters. It's whether there's room in the budget. The honest answer is that meaningful coverage often costs less than people fear, and there are several ways to make it fit even a tight month.
What $20, $40 and $60 a month can buy
Illustrative examples for healthy non-smokers:
About $20 a month
- 30-year-old: roughly $250,000–$400,000 of 20-year term
- 50-year-old: roughly $100,000 of 10-year term
- 60-year-old woman: about $5,000–$7,000 of final expense
About $40 a month
- 35-year-old: roughly $500,000 of 20-year term
- 45-year-old: roughly $250,000 of 20-year term
- 65-year-old woman: about $10,000 of final expense
About $60 a month
- 40-year-old: roughly $500,000 of 20-year term
- 55-year-old: roughly $250,000 of 10- to 15-year term
- 70-year-old woman: about $10,000 of final expense
Rough ranges only. Health, tobacco, gender and carrier change prices.
Seven ways to make coverage affordable
- Start with term. It's the most coverage per dollar for families with kids and a mortgage.
- Pick the shortest term that covers your need. If your youngest is 10, a 15-year term may be enough.
- Ladder two smaller policies instead of one big long one.
- Pay annually if you can. Monthly payments often cost a few percent more over a year.
- Buy now. Every year older raises the price, and health changes can raise it more.
- Quit tobacco. After about a year nicotine-free, many carriers will re-rate you.
- Compare carriers. The same person can see quotes differ by 30 percent or more.
Something is better than nothing
If the "right" amount from a worksheet doesn't fit your budget, buy what does fit. A $150,000 policy that pays off the house and covers a funeral is a world better than no policy. You can add more later as income grows, ideally with a policy that includes a guaranteed insurability option.
Texas protections worth knowing
- Free look period: Texas gives you time after delivery of a new life insurance policy, generally at least 10 days, to review it and cancel for a full refund. Longer periods may apply in some cases, such as when replacing an existing policy.
- Grace period: If you miss a payment, policies have a grace period (commonly 31 days) before they lapse.
- Texas Life and Health Insurance Guaranty Association: If a licensed insurer becomes insolvent, this association provides protection for Texas policyholders up to certain limits, generally up to $300,000 in death benefits per insured life.
- Check your agent: Look up any agent's license for free on the Texas Department of Insurance website.
Coverage options that don't depend on great health
- Simplified issue: a few health questions, no exam
- Guaranteed issue: no health questions, with a two-year waiting period
- Group coverage through employers, unions or credit unions
More detail is in life insurance without a medical exam.
Tell us your budget, we'll do the rest
Give us a monthly number that's comfortable, and we'll show you the most protection that amount can buy from several carriers.
This guide is general education, not tax, legal or financial advice. Product features, issue ages and prices vary by carrier and state and change over time.