Texas State Regulated Life Insurance Program

Texas State Regulated life insurance program

We are going to discuss Texas State Regulated Life Insurance Program in this article. Death is truly inevitable and that is why people make effort to plan for it before time by insuring their lives. Although the individuals who take life insurance seriously are those in the 40+ age bracket.

Those below 40 sometimes do not see the need to plan for death even when it is obvious that it can come at any time and to anyone regardless of age, gender, or status.

Due the how important life insurance is to people in the above-mentioned age bracket, many insurance companies target their product Ads to them. Many individuals in that age bracket receive emails offering a state-regulated life insurance benefit that will cover 100% of funeral expenditures up to $30,000.

They make the offer look so irresistible that these individuals, most times fall prey by giving them their personal details. They program the Ad in a way that will make you give out your details for further information or registration.

After getting your personal details, they sell these personal details to a salesperson who will send you to mail consistently, urging you to subscribe or buy their life insurance.

The real gist is that the so-called State Regulated Life Insurance Program that covers 100% of funeral expenses does not exist. It is only a means of getting your personal details which they sell to salespersons. This is why most people refer to it as a scam.

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What Does “State Regulated Life Insurance” Mean?

Just in case you are yet to grasp the gist. State-regulated life insurance isn’t what these people say it is. You might be thinking that it is a platform where the government takes care of virtually every of your funeral expenses but that isn’t what it is.

Generally, every life insurance is regulated at the state level. See how it works! Any company that wants to offer insurance products such as life insurance must follow the process and abide by the rule constituted by the state government.

They must get a license to sell from the State Insurance Department before selling to the state citizens. Also, they must provide financial information about the product. All the requirements must be met before they will be allowed to run their business.

This is how they regulate insurance in the cases of citizens being scammed. So, whenever you receive a mail stating State Regulates Life Insurance, you shouldn’t be elated and moved to give out your details. It is just a means of getting your personal details and nothing else.


Is State Regulated Life Insurance Fraud?

Well, State-regulated life insurance mail isn’t totally fraudulent as they are not sent to extract money from you. But in the real sense, it isn’t genuine.

The mails can pass as a lead generation technique that they use to get people’s information by making them believe that there is a state-sponsored citizen’s life insurance plan which will take care of 100% of funeral expenses while it’s not true.

Their main target is your personal information which they will sell to salespersons who will begin to bombard you with life insurance packages and even phone calls. They use the phrase “state regulated” to make their offer seem legit and official. So, don’t fall prey!

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Does the State Sponsor These Plans?

No, they don’t!

As a matter of fact, they escape the possibility of being sued by stating the fact that they are not affiliated with or endorsed by any government agency. The thing is, they place it in a place where you might not easily see it before giving out your information.

The state does not sponsor anyone’s funeral, they only pay the sum of $255 only to qualified persons, not to everyone. The trick is to make you get swayed and give out your personal information. Oftentimes, they request your name, address, age, spouse’s name, and age.

Once you give this information out, they will add you to the list of people that will receive spam emails and phone calls from insurance agents.


What do you Need to Do?

Instead of falling prey to their ploy, this is what you should do. When you receive such mail from these companies, don’t do anything that they ask you to do. If you feel that their offer looks so real and tempting, quickly contact registered or licensed insurance companies or agencies and make inquiries.

Cultivate the habit of hoarding your information until you prove that the company or agency requesting it is genuine and licensed. As a matter of fact, you don’t even need to give out your personal information to decide on the insurance option plan. You can discard these emails as soon as possible.

If you want to get your life and your spouse insured, kindly locate a registered insurance company and request their insurance option. When you do, select the option or plan that suits you perfectly and stick with it. Don’t be deceived by fake promises.


Other New State Regulated Life Insurance Program

As stated earlier, every insurance is regulated by the state. This does not mean that the state covers anyone’s final expenses, it means that every insurance company’s activity is regulated by the state body.

Every year, the National Funeral Directors Association (NFDA) decides on the price list or rather the limit every insurance company is to charge for the final arrangement. Not just them, the Texas Department of Insurance also has a say in every insurance product offered to citizens.

The state does not pay for final expenses, they only give the sum of $255 to qualified persons and this is nothing compared to what you will spend for the burial or funeral.

Texas state has various life insurance programs for some groups of persons but it’s definitely not free. Life insurance programs like the Employees Retirement System of Texas (ERS) where active employees enrolled in the Group Benefits Program health plan (GBP) automatically receive $5,000 of Basic Term Life Insurance and $5,000 of Accidental Death and Dismemberment (AD&D) at no cost.

Basic Term Life Insurance gives a basis of coverage. The enrolled active employees have the option of establishing this basis on their own by adding additional coverage.

There might be other platforms such as the ERS but one thing that you must take note of is that the term “State Regulated Life Insurance Program” is used to get your information from you. It doesn’t mean that the state is offering to cater to your final expenses.