Best Life Insurance Companies in Austin, TX For 2024
I believe that Nationwide offers the best life insurance in Austin.
Knowing that our family has financial security after we pass away is important to many of us. With so many options available, choosing the right life insurance policy is a huge decision financially. We took a deep dive into each of the life insurance companies on the market in Austin, and after extensive research, concluded that Nationwide is the number one choice when it comes to our recommendation. Nationwide offers outstanding life insurance products for all ages, at fair and reasonable premiums.
Throughout this evaluation we’ll look at term life, whole life, and variable universal life policies and compare them with the average premium rates of life insurance in Austin. Deciding on a life insurance policy that’s right for you is so important, as making the wrong choice can result in long-lasting financial turmoil for loved ones left behind.
During my stint as a career agent, I became familiar with each of the life insurance companies mentioned throughout this assessment. All insurers discussed target various demographics; however, each company offers exceptional customer service and are solid financially.
Best life insurance companies in Austin, TX 2024
Compare the best life insurance in Austin, TX
To help you make an informed decision, below is a table highlighting life insurance companies in Austin, and how they score across some fundamental criteria.
| Overall Rating | Best For | A.M. Best Rating | J.D. Power Rating (Best 1000) | Online Experience | Get A Quote | |
|---|---|---|---|---|---|---|
| MassMutual |
|
Best Overall Runner-Up |
A |
780 |
9.5 |
Instant Quote |
| Nationwide |
|
Best Overall |
A++ |
791 |
9.4 |
Instant Quote |
| Mutual of Omaha |
|
Best for Seniors |
A+ |
801 |
9.2 |
Instant Quote |
| Transamerica |
|
Best for Young Adults |
A |
740 |
9.7 |
Instant Quote |
| Mass Mutual |
|
Best for Cheapest Life Insurance |
A++ |
780 |
9.6 |
Instant Quote |
| USAA |
|
Best for Military Families |
A+ |
NR |
9.6 |
Instant Quote |
Our Methodology
Our detailed and extensive research took several factors into consideration. These include customer service ratings, rates, the quality of the experience online, and variety of products available. On top of this, my own experience working in life insurance sales, as well as representing a company discussed, plays a somewhat subjective role. Knowledge gained through discussions with agents who have worked alongside other insurers has also been a contribution to this comprehensive evaluation.
Quotes Analyzed
Years Of Experience
Brands Reviewed
Research Hours
Best Life Insurance Companies In Austin
Best Overall
Key Statistics
Why We Like Them
⇅Nationwide is a widely recognized insurance company who, quite aptly, uses a blanket as part of its marketing – representing security and protection. Its highly skilled workforce is made up of career agents, including a network of agents who have been hand-picked to represent them.
With their complete product line of insurance available, Nationwide also offers a number of different term and permanent life insurance products. These include whole life, universal life, and variable universal life insurance. In addition to this, Nationwide also offers a life insurance plan that requires no medical examination.
It couldn’t be easier to buy life insurance from Nationwide. You can either call up their home office, who will then pass you on to a Nationwide career agent or independent agent depending on your needs, or you can visit one of Austin’s many local branches.
Exceptional financial ratings and customer satisfaction reviews support the claim that Nationwide is undoubtedly one of the best life insurance companies available, with highly competitive rates.
Benefits & Drawbacks
⇅- Fantastic network of trained agents
- A long list of complete life insurance products
- Some of the lowest rates among the companies assessed ✓
- Term life applicants must be 70 or younger
- No online quotes or applications for permanent products ✘
Best Overall Runner-Up
Key Statistics
Why We Like Them
⇅MassMutual is commonly thought of as the 1st runner-up when it comes to life insurance companies, providing life insurance in Austin for decades despite being based in Massachusetts.
Agents at MassMutual undergo extensive training during their careers. To ensure their clients receive the best possible insurance for them, agents use a detailed life insurance needs analysis to decipher the most appropriate face amount.
MassMutual offers a wide range of life insurance products. These include whole life, universal life, and term life insurance. Additionally, the company also offers a variable universal life policy combining shared funds with a death benefit to increase cash amount.
Overhead costs are much higher for the company as a result of upkeep for Class A offices up and down the country, however, life insurance premiums at MassMutual are still competitive.
Benefits & Drawbacks
⇅- Term and permanent life insurance policies available
- Online and face-to-face breakdown of policies
- Online claims filing ✓
- Term policies purchased online can’t be converted to permanent polici
- Cannot apply online for a permanent policy ✘
Best for Seniors
Key Statistics
Why We Like Them
⇅I worked as a licensed agent alongside Mutual of Omaha for a number of years and can therefore testify to their in-depth knowledge of the senior market. An example being, their senior life product line includes a guaranteed issue product, regardless of your health background. Because of this, you will not be denied any coverage, however, premiums do tend to be higher due to the financial risk.
To avoid paying the higher rates that come with a guaranteed issue policy, the company also offers a much more basic issue product for senior customers. A short application must be completed consisting of a few medical questions; however, a medical examination is not required. The simplified product comes at a much lower rate, but coverage isn’t always necessarily guaranteed. You may be declined if you have a history of heart problems, and/or cancer.
Benefits & Drawbacks
⇅- Senior life products sold by well-trained agents
- Complete line of senior products, including life insurance and Medicare Supplements
- No exam required for senior life insurance policies ✓
- Not as many term life plans as competitors
- Senior life policies have limited face amounts ✘
Best for Young Adults
Key Statistics
Why We Like Them
⇅Transamerica’s pyramid is an iconic building in San Francisco; however, this life insurance company is also highly represented in Austin, made up of a large team that sells its policies to clients at a much more affordable rate – more so with its term life policy for young adults.
Additionally, Transamerica offers an exceptional online experience to encourage young people to purchase life insurance. With many younger people preferring to buy life insurance products online, Transamerica guarantees a simple process by also providing its customers with a quote via the website.
For those who prefer to discuss policies in-person, their ‘Locate an Agent’ button found on their website helps you to find a representative close-by.
Benefits & Drawbacks
⇅- Term life insurance available to buy online
- Policy face amounts go as high as $10 million
- No medical exam for up to $2 million for qualifying applicants ✓
- $25,000 is the minimum term life insurance face amount available
- Final Expense Policy is not guaranteed issue ✘
Best for Families
Key Statistics
Why We Like Them
⇅Earning an A+ (Superior) rating from A.M. Best, USAA are proven to have exceptional financial strength as well as claims payment ability. Their casualty and property products cater mainly to active military members, veterans, and their families, however, USAA’s life insurance policies are available to all U.S citizens and permanent residents – even if they have no connections within the military.
The company has an allocated ‘Survivor Relations’ team, committed to supporting the family of policy owners who have since passed away, and helping them to settle claims. USAA also provides a guaranteed issue life insurance policy issued by Mutual of Omaha, available in Austin and without the need for a medical examination.
Benefits & Drawbacks
⇅- Life insurance is available to non-military citizens and permanent residents
- Complete line of life insurance products, including term, whole, and universal life
- No medical exam required for some term life policies ✓
- Not as many term life plans as competitors
- Essential Term only available to consumers ages 21 to 35 ✘
Best For Cheapest Life Insurance
Key Statistics
Why We Like Them
⇅For more cost-friendly life insurance policies in Austin, MassMutual is undoubtedly top of the leaderboard. With the most competitive rates for male and female clients, MassMutual sets itself apart from other big names within the industry such as State Farm, Mutual of Omaha, Prudential, and Nationwide. MassMutual recognizes how profitable the term life insurance marketplace is and has therefore priced their policies accordingly..
MassMutual is a fantastic choice for clients seeking a term life insurance policy, lasting from 1, all the way up to 30 years, with their coverage starting at $100,000. If, later on, you decide that you need permanent coverage, then most term life policies are able to be converted, such as whole life or universal life.
In addition to their excellent rate, MassMutual has also established itself as being a company that provides exceptional customer service, after receiving less complaints from its policyholders than expected according to the National Association of Insurance Commissioners. They also ranked 9th out of 22 for customer satisfaction in JD Power’s 2022 U.S ranking of insurance providers.
Benefits & Drawbacks
⇅- Cheapest rates in Austin overall
- Online and in-person breakdown of policies
- Online claims filing ✓
- Term policies purchased online can’t be converted to permanent policies
- No online application for permanent policies ✘
Finding the best life insurance company for you
After taking a deep dive into the top insurance providers, we found that each provider offers products and policies to perfectly suit you and your needs. Depending on your circumstances, however, certain companies may benefit you more than others.
One example being, if you are 65 years old and are looking to buy $25,000 of whole life insurance, Mutual of Omaha may be your best bet. However, if you are 35 years old then Nationwide is probably going to be a more suitable policy for you.
On top of this, if you prefer to discuss your options in-person with an agent, MassMutual will be a better option for you rather than other companies who work solely online. When trying to determine the best life insurance company for you, ask yourself the five following questions:
- What are the company’s financial ratings?
- Does the company offer the type of policy I require for my circumstance?
- Do I want to discuss policies in-person with an agent, or do I prefer to search for policies online?
- Are the company’s rates competitive for my age group?
- Does the company have mostly positive online reviews?
It’s important to bear in mind that your circumstances are totally unique to you and may be different to those of your family and friends.
The biggest life insurance companies in Texas
There are plenty of life insurance companies available in Texas. The largest companies as measured by market share are:
| Company | Market Share |
| Northwestern Mutual | 7% |
| Lincoln Financial | 6% |
| New York Life | 6% |
| Transamerica | 4% |
| MassMutual | 4% |
| Pacific Life | 4% |
| State Farm | 4% |
Average Life Insurance Costs in Austin, TX
Best Cheap Life Insurance Companies in Austin for Females
(Average age 30, average weight of 153, average coverage needs of $680,000)
| Company | Rates for $250,000 Coverage | Rates for $926,000 Coverage (Recommended) |
| MassMutual | $12 | $19 |
| State Farm | $25 | $41 |
| Mutual of Omaha | $13 | $19 |
| Transamerica | $15 | $29 |
| Nationwide | $14 | $20 |
| Progressive | $20 | $47 |
| AAA | $21 | $45 |
Best Cheap Life Insurance Companies in Austin for Males
(Average age 30, average weight of 193, average coverage needs of $680,000)
| Company | Rates for $250,000 Coverage | Rates for $926,000 Coverage (Recommended) |
| MassMutual | $12 | $21 |
| State Farm | $22 | $43 |
| Mutual of Omaha | $13 | $23 |
| Transamerica | $17 | $35 |
| Nationwide | $13 | $21 |
| Progressive | $31 | $64 |
| AAA | $24 | $52 |
Best life insurance companies for young people in Austin, TX
(Male, average age of 25, average weight of 167, average coverage needs of $270,000)
| Company | Rates for $270,000 Coverage |
| Nationwide | $22 |
| State Farm | $27 |
| Progressive | $28 |
Best life insurance companies for seniors in Austin, TX
(Average age 60, average weight of 197, average coverage needs of $82,000)
| Company | Rates for $82,000 Coverage |
| MassMutual | $44 |
| State Farm | $60 |
| Mutual of Omaha | $51 |
| Nationwide | $52 |
| Progressive | $79 |
Texas life insurance laws worth knowing
There are certain laws that life insurance companies in Texas must practice to protect policyholders and inform its clients how the policies work.
Free look period
A new policyholder may decide that they no longer require life insurance, and as long as they cancel within 10 days of receiving the policy, a full refund of their initial premium payment is given.
Guaranty Fund protection
When a policyholder makes a payment for their premium, coverage is guaranteed protection by the Texas Life and Health Insurance Guaranty Associations. Should a life insurance company fail, the association guarantees coverage of up to $300,000 in life insurance death benefits, and $100,000 in life insurance cash surrender value.
Contestable period
In the state of Texas, policies have a period of two years from the initial date to be contested. Insurance companies can reject a claim if they come to discover that the policyholder was dishonest during their application.
Time permitted to settle claim
After receiving proof of the policyholder’s death, all Texas-based life insurance companies must settle claims within two months. Interest on claims will build each day from receiving evidence of death.
Grace period for missed payments
Should Texan policyholders miss a payment, a grace period of 31 days is given for the insured to catch up with their payments and bring them back up to date – otherwise the insurance provider will cancel the coverage. In doing so, the policyholder is granted additional time to pay their premiums.
Discover Austin, TX
The official capital of Texas, Austin is a cool, quirky, and vibrant city located in the center of the country’s second largest state. With a population just shy of 1 million people, Austin is the fourth largest city in Texas and the tenth largest city in the United States. Known as the Live Music Capital of the World, Austin is a popular destination for music lovers as it’s home to some of the largest music events and festivals in the world including South by Southwest and Austin City Limits.
One of Austin’s most famous landmarks is the capitol building. Built on a hilltop in 1885, the capitol is the sixth tallest capitol in America, and features a number of statues and monuments overlooking downtown. Other popular spots include the University of Texas at Austin, the statue of Stevie Ray Vaughan, and the Blanton Museum of Art.
FAQs
Is life insurance expensive in Texas?
Cost of life insurance in Texas depends on a number of things including age, health background, height, weight, and whether or not you are a smoker. For instance, healthy young adults have the option of getting $270,000 worth of coverage for the small monthly payment of $12.
Is life insurance a requirement in Texas?
If you are an Austin resident and have financial dependents, then opting for life insurance is an extremely important thing to consider. Policies can provide a deceased benefit guaranteeing any loved ones left behind will keep their home, college expenses covered, as well as end-of-life costs.
How much life insurance is needed in Austin?
It totally depends on your financial situation and the circumstances of your family as coverage differs. With that being said, agents typically suggest that an individual in employment seeks coverage between 7-10 times their annual salary. This will then ensure that family and any other loved ones will be supported financially, should a death happen that was not expected. Policies can also offer support in subsidizing any lost income for families.
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