Term Life Insurance the Texan Way

by Bestow Team | March 26, 2018

Everything y’all need to know about term life insurance in Texas.

Texans have a lot to be proud of: The Alamo, breakfast tacos, Chip and JoJo, over 675,580 miles of roads spanning 267,339 square miles of land, and our capitol building is taller than the U.S. Capitol.

The Lone Star State is also home to Bestow. We’re a Dallas-based startup on a mission to help families protect their financial future by making life insurance a little more Texan: as easy as pie, bright as a new penny, and tight as a wet boot — meaning more accessible, affordable, and instant. But more on that below.

Why Do Texans Need Life Insurance?

The common misconception is that life insurance just covers funeral costs and associated expenses. The truth is, it can cover anything you want. It can pay off your mortgage, cover college tuition, and even cover your family’s income for several years.

Unlike other life insurance products, a term life insurance policy is simple.

  1. Pick a term length (10, 15, 20, 25, and 30-year terms)
  2. Pick a coverage amount ($50,000 to $1.5 Million)
  3. Then make the same monthly payment until your policy term ends.

But do you really need life insurance? Here are three things to consider:

1. You Have Debt

Upon your passing, your debt now becomes the responsibility of your estate.

Think about your mortgage, car loans, personal loans, student loans, credit cards, and any other debt. How much do you owe? On average, Texans owe $185,583.79. Without financial protection (like life insurance), the assets you hoped to leave to your heirs are now at risk to pay off your debt.

2. You Have Dependents

With an average family size of 3.31 in Texas (U.S. Census), chances are you have a family. Think about who depends on you now: spouse or partner, children, aging parents, extended family, close friends. Do they depend on your financial support?

Life insurance isn’t just for breadwinners either. Stay-at-home moms need coverage, too. If moms got paid for their work, they’d be making six figures. Think about your day to day duties and what it would cost to hire someone to help the family maintain your lifestyle.

3. Your Employer Doesn’t Offer Coverage

Texas has a bustling economy (the 10th largest in the world!). There are 2.4 million small businesses in the state that employ 46% of Texans. Life insurance is commonly purchased through work, but with 4.4 million Texans working for small businesses, it’s unlikely that a mom and pop shop can offer group life coverage.

Even if you do have life insurance through work, basic coverage is usually between $25,000 and $50,000, or sometimes it’s the equivalent to one year’s salary. Again, likely not enough. An individual life insurance policy can provide additional protection.

And if you leave your job, you often leave your life insurance benefits behind, too.

Texans, Get Covered

Buying life insurance the traditional route can take anywhere from two weeks to several months. The lengthy application process can be such a chore (paperwork, interviews, and the dreaded medical exam) that even those with good intentions often quit early in the process.

Like all Texans, we prefer things to be straightforward and hassle-free. We redesigned the application process from the ground up, allowing you to apply for a term life insurance policy online and no medical exam required. Get up to $1.5 Million in coverage in minutes, not weeks, with A+ (Superior) financial backing. Just because we’re fast doesn’t mean we’re skimping on quality.

Additional Life Insurance Resources

These articles have more information about how life insurance — specifically term life insurance — works.

Take a look around our blog for even more information.

Bestow policies are provided by North American Company for Life and Health Insurance®, an insurance carrier rated A+ (Superior) by A.M. Best. Limitations or restrictions may apply.