When your family depends on you, having life insurance guarantees that they have enough funds to handle expenses in the event of your passing. MoneyGeek’s analysis of the best life insurance companies in Houston compares prices and lists the best policies for different buyer profiles.
Best Life Insurance Companies in Houston, TX, for 2024
Updated: November 21, 2024
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BestLife InsuranceHouston, TXBest Life Insurance Companies in Houston, TX, for 2023
Most Popular in Texas - Northwestern Mutual
Best for Young People - Transamerica
Best Cheap Life Insurance in Houston
When looking for the cheapest life insurance in Houston, buyers should take into account how their gender and preferred coverage level could affect their premiums. For a $250K coverage policy in Houston, MassMutual offers the cheapest policies for men at around $10 per month. The same insurer offers the cheapest rates for women at around $9 per month.
Based on the cost of living, average income, average personal debt, average age and other state-specific factors, MoneyGeek recommends having at least $719,000 in coverage if you live in Houston, Texas. Though a $250K coverage policy is cheaper, buyers should consider purchasing the recommended coverage in Texas to ensure that their family has the needed security.
For this coverage level, MassMutual offers the cheapest policies for male buyers at $17 per month. Nationwide offers the cheapest policies for female buyers at around $14 per month.
Cheapest Life Insurance Companies for Males and Females in Houston
Cheapest For | $250K Coverage | $719K Coverage (Recommended) |
|---|---|---|
Male | MassMutual | MassMutual |
Female | MassMutual | Nationwide |
Life Insurance Costs in Houston for Men and Women
The average cost of life insurance varies greatly by gender but also within cities. MoneyGeek found that life insurance for men in Houston is 4% cheaper than the average cost in all of Texas. Meanwhile, life insurance cost for women in Houston is 7% cheaper than the average cost of life insurance state-wide.
Gender and location affect rates significantly. To see how the costs differ between buyer profiles, MoneyGeek compared the average cost between male and female buyers in Houston and further compared it to other cities in Texas.
For a $250K coverage, the average cost of policies costs $18 for males and $15 for females. Increasing the coverage level to $719,000, which is the recommended amount of coverage if you’re in Texas, the average cost of policies averages at around $37 monthly for male buyers and $31 monthly for female buyers.
Opting for a term life insurance, male buyers can expect to pay around $24 per month for a 10-year term. Female buyers can expect to pay around $20 per month for the same term length.
Average Monthly Life Insurance Rates in Houston: Men
| MassMutual | $10 | $17 |
| Nationwide | $10 | $17 |
| Mutual of Omaha | $10 | $18 |
| Transamerica | $14 | $28 |
| State Farm | $18 | $35 |
| AAA | $18 | $42 |
| Progressive Life | $21 | $45 |
| Prudential | $24 | $53 |
Average Monthly Life Insurance Rates in Houston: Women
| Nationwide | $10 | $14 |
| Mutual of Omaha | $10 | $14 |
| MassMutual | $9 | $14 |
| Transamerica | $11 | $23 |
| State Farm | $18 | $31 |
| AAA | $15 | $34 |
| Progressive Life | $15 | $36 |
| Prudential | $17 | $47 |
Life insurance policy costs were determined by gathering 10-year term quotes from major life insurance companies in Houston using average buyer profile statistics, including the average age of 28, the average weight of 197 pounds for males and 156 pounds for females, and an average coverage need of $719,000.
LIFE INSURANCE OFTEN COSTS LESS FOR WOMEN
Gender is one of the most important factors evaluated when calculating life insurance rates. Women are often given lower insurance rates than men, as they statistically are less riskier to insure.
According to a 2020 study by the CDC, the average life expectancy for men is 75 years, whereas women live about 81 years. Some of the reasons why women outlive their male counterparts are due to the fact that males take more risks and have more dangerous jobs. Interestingly, men who isolate themselves in social gatherings are more likely to develop health risks.
Most Popular Life Insurance Companies in Texas
The three most popular life insurance companies in Texas are Northwestern Mutual (7%), New York Life (6%) and Lincoln Financial (6%). Overall, the seven most popular companies in Florida make up about 35% of the overall market share.
MoneyGeek lists down the most popular life insurance companies in Texas and their market shares below.
Most Popular Life Insurance Companies in Texas
| Northwestern Mutual | 7% |
| New York Life | 6% |
| Lincoln Financial | 6% |
| State Farm | 4% |
| Pacific Life | 4% |
| MassMutual | 4% |
| Transamerica | 4% |
MONEYGEEK DICTIONARY
A company's market share represents the number of policies sold by a particular provider in comparison to others in the same industry. Life insurance companies with the highest market share dominate the market and account for a significant portion of sales.
Based on data from S&P Global's 2020 state reports, MoneyGeek compiled a list of the most popular life insurance providers with the highest market share.
Cheapest Life Insurance for Young People in Houston
In Houston, the cost of life insurance for young people ranges from approximately $13 to $22 per month. For this age group, MoneyGeek recommends the following companies with the cheapest average rates:
- Transamerica: $13 per month
- Mutual of Omaha: $15 per month
See the complete list of the most affordable life insurance companies for young adults in Detroit.
Best Life Insurance Companies for Young People in Houston, TX
| Transamerica | $13 |
| Mutual of Omaha | $15 |
| MassMutual | $15 |
| AAA | $16 |
| Prudential | $17 |
| Nationwide | $18 |
| State Farm | $21 |
| Progressive Life | $22 |
Rates were determined by analyzing quotes for a 25-year-old male non-smoker in Houston who is 5 feet 10 inches in height and weighs 167 pounds with a 20-year term contract at the average coverage need of $270,000. We chose a 20-year term to provide a longer coverage period for a younger buyer.
LIFE INSURANCE IS CHEAPER FOR YOUNG PEOPLE
Young people, because they are generally healthy and less risky to insure, are offered the cheapest life insurance rates in general. However, rates increase as you get older. MoneyGeek recommends buying a policy at a young age to get the cheapest rates possible.
Cheapest Life Insurance for Seniors in Houston
Seniors pay around $37 up to $76 per month for life insurance in Houston. Based on MoneyGeek’s research, the cheapest companies on average for older adults in Houston are:
- MassMutual: $37 per month
- Mutual of Omaha: $42 per month
Refer to the table below for other life insurance companies with the lowest rates for seniors in Houston.
Best Life Insurance Companies for Seniors in Houston, TX
| MassMutual | $37 |
| Mutual of Omaha | $42 |
| Nationwide | $42 |
| State Farm | $49 |
| Progressive Life | $66 |
| AAA | $69 |
| Transamerica | $76 |
| Prudential | $76 |
Rates were determined by analyzing quotes for a 60-year-old male non-smoker in Houston who is 5 feet 10 inches tall and weighs 197 pounds with a 10-year term contract at the average coverage need of $82,000.
LIFE INSURANCE COSTS MORE FOR SENIORS
Since premiums increase as you get older, expect that seniors will pay higher life insurance rates. Seniors whose beneficiaries are already adults who can financially provide for themselves frequently don’t require higher coverage. Opting for lower coverage could help them save on premiums. For our sample senior buyer, we used a lower coverage amount than we used for other demographics. This coverage amount is enough to cover funeral arrangements and other burial costs and even settle for any outstanding debts.
Cheapest Life Insurance for Smokers in Houston
Smokers in Houston should expect to pay between $109 and $201 per month on average for life insurance quotes in Houston. According to MoneyGeek, the cheapest life insurance providers on average for smokers in Houston City are:
- MassMutual: $109 per month
- State Farm: $109 per month
Refer to the table below to see more of the most affordable insurers in the city for smokers.
Best Life Insurance Companies for Smokers in Houston, TX
| MassMutual | $109 |
| State Farm | $109 |
| Nationwide | $110 |
| Transamerica | $122 |
| Mutual of Omaha | $122 |
| Progressive Life | $171 |
| Prudential | $182 |
| AAA | $201 |
Rates were determined by analyzing quotes for a 28-year-old male smoker in Houston who is 5 feet 10 inches tall and weighs 197 pounds with a 20-year term contract at the average coverage need of $719,000. If you are a smoker, we suggest buying a longer-term (20-year) policy to provide longer coverage as rates for smokers increase dramatically as you age.
LIFE INSURANCE IS VERY EXPENSIVE FOR SMOKERS
Being prone to more diseases, smokers are considered riskier to insure because of their reduced life expectancy. Since they face higher insurance rates, it pays to find affordable life insurance options for smokers. MoneyGeek recommends getting a longer-term policy of up to 20 years since rates increase as you age.
Methodology
MoneyGeek determined the recommended life insurance coverage by factoring in per capita income from the U.S. Bureau of Economics, average mortgage debt, average personal debt and average age. Keep in mind that each buyer is unique and may need more or less coverage depending on their specific circumstances.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
sources
- Harvard Health Publishing. "Why Men Often Die Earlier Than Women." Accessed October 30, 2024.
- Life Insurance Marketing and Research Association (LIMRA). "Facts About Life Insurance 2021." Accessed October 30, 2024.
- S&P Global. "2020 Annual Report." Accessed October 30, 2024.