TX Life & Health study guide
TX Life & Health · Work through your exam, one topic at a time.
The Texas Life & Health insurance agent license - often called the Texas General Lines Life, Accident, and Health license - is a state credential that allows a person to solicit, sell, and service life insurance, accident and health insurance, and annuities in Texas. It is designed for new agents entering the insurance business, career changers, and producer-support staff who need to be licensed. The TX Life & Health study guide has 10 sections and about 3,792 words.
01Insurance Regulation and General Insurance Concepts
Insurance transfers pure risk (loss or no loss) from an individual to a pool of similar exposure units. Speculative risk (the chance of gain as well as loss) is not insurable.
363 words, about 2 min02Life Insurance Basics
Life insurance replaces income, covers debts and final expenses, provides estate liquidity, and funds business continuation. Agents use the human life value approach (present value of the insured's future earnings) or the needs approach (debts, income replacement, education, expenses minus existing resources).
408 words, about 2 min03Life Insurance Policies
Term covers a defined period and has no cash value ; it pays only on death during the term. Variations include level term , decreasing term (mortgage protection), increasing term , renewable term (guaranteed renewal without evidence, at higher premium), convertible term (to permanent without evidence of insurability), and return of premium term.
374 words, about 2 min04Life Insurance Policy Provisions, Options, and Riders
An entire contract provision limits the agreement to the policy plus the attached application. The free look (10–30 days depending on the state) lets the owner return the policy for a full refund.
396 words, about 2 min05Annuities
An annuity is the opposite of life insurance: it liquidates an estate by converting a lump sum into a stream of income that cannot be outlived. The two phases are accumulation (premiums grow tax deferred) and annuitization (payout).
371 words, about 2 min06Federal Tax Considerations for Life Insurance and Annuities
A death benefit paid to a named beneficiary is generally income-tax free . Cash value grows tax deferred , and policy loans are not taxable while the policy stays in force - but if the policy lapses or is surrendered with an outstanding loan, the gain can become taxable, and a surrender is taxed to the extent the proceeds exceed basis.
410 words, about 2 min07Health Insurance Basics
Health insurance uses morbidity (rates of illness and injury) rather than mortality. Premiums reflect expected claims, expenses, and interest, adjusted for age, geography, and plan design.
361 words, about 2 min08Individual Health Insurance Policy General Provisions
Individual health policies must contain a set of mandatory uniform provisions required by state law, plus optional ones. The most tested are: Entire contract - the policy plus attached endorsements and a copy of the application.
412 words, about 2 min09Disability Income and Medical Expense Insurance
Disability income replaces part of earned income - typically 60–70% - so the insured has an incentive to return to work. Key terms: Total disability - defined as the inability to perform the duties of own occupation (broad, most favorable to the insured, usually limited to the first 2–5 years), any occupation (for which the insured is reasonably suited by education and experience), or a split definition combining the two.
352 words, about 2 min10Group Health Insurance and Health Insurance Taxation
The employer holds the master policy and each participant receives a certificate of insurance . Group underwriting looks at the group rather than the individual: size, industry, prior claims, and participation.
345 words, about 2 min