As you probably know, local laws affect the way insurance works. With that in mind, in this post, we discuss some Texas life insurance laws that any informed consumer should know.
Whether you have a life insurance policy or are looking for one, these facts will help you make smarter decisions.
1. You Have a “Free-Look Period”
Life insurance policies in Texas have a free-look period of at least 10 to 20 days. A free-look period is a period during which you can cancel the policy for any reason and still get a full refund. This Free-look period is useful to make sure that the policy you bought makes sense for you.
2. Missed a Life Insurance Payment? Most Policies Have a Grace Period
In most cases, life insurance policies have a grace period of 31 days after a payment’s due date. This means that you have 31 days to make a payment after the agreed-upon date without being charged interest and still be covered.
3. Insurance Companies Have a Two-Year Contestable Period
Here the term “contestable period” means that if an insured person dies within two years of taking out a life insurance policy, then the insurance company can investigate the cause of the death and review the application. If the insured person dies after two years, then the insurance company has to pay the death benefit with three exceptions:
- If the insured person didn’t pay their premiums
- If the insured made a false statement
- If the insured person withheld information
4. Insurance Companies Are Required To Pay Claims Promptly
The Texas Administrative Code requires insurance companies to pay the death benefit of an insurance policy no later than two months after receiving proof of death of the insured person and verifying the beneficiary.
To learn more about life insurance, don’t hesitate to contact our experts at BZ Bee Insurance. We’ll answer all your questions and offer the assistance you need to build a life insurance policy that makes sense for you.
Need Dependable Life Insurance in Houston, Texas? Contact BZ Bee!
If what you need is affordable life insurance, look no further than BZ Bee Insurance.
We are located in Houston, Texas, and serve clients all over the Lone Star state. To get a free quote, just contact us by email (ayalamariaeugenia@yahoo.com) or telephone (832-729-8114), or fill out the contact form on this website.
