Should You Buy Your Life Insurance from State Farm?
State Farm Life Insurance Company is a well-known company in the United States. And while the company is very popular for its home and auto insurance policies, how does it compare to the best life insurance companies in the market? We tell you in this article.
An Overview of State Farm Life Insurance
State Farm was founded in 1929 and has grown into a large life insurance company with over 7.8 million life insurance and annuity policies in force.
The company operates in all states except MA, NY, and WI.
In NY and WI, the company name is State Farm Life and Accident Assurance Company.
Policies are not available in Massachusetts.
This review covers the company’s history, products and services, customer service, financial strength, and more.
Financial Strength of State Farm
State Farm is a good company and has great financial strength ratings:
AM Best Rating – A++ Rated – This is the highest rating offered by AM Best. Other companies with similar ratings include Guardian, Mass Mutual, New York Life, and Northwestern Mutual.
S&P Rating – AA Rated – This is the third-highest rating available. Other companies with ratings slightly better or worse include John Hancock (AA-), Lincoln National (AA-), Pacific Life (AA-), and Guardian (AA+).
Moody’s Rating – Aa1 Rated – This is the third-highest rating. Other companies to compare include Allstate (Aa3), Guardian (Aa2), and Minnesota Life (Aa3).
Fitch Rating – AA Rated – The third-highest rating.
There’s no doubt that the financial strength ratings of State Farm represent its conservative nature as a mutual holding company.
State Farm Life Insurance Products
State Farm Life Insurance Company offers a range of life insurance products depending on your needs:
If you have a high-risk medical condition, State Farm will not be your best option.
Select Term Life Insurance by State Farm
The Select Term product by State Farm offers the following:
- Coverage Amounts start at $100,000
- Term Lengths – 10, 20, or 30-year term
- Issue Ages:
- 10-year – Ages 18-75
- 20-year – Ages 18-65
- 30-year – Ages 18-45
- Available Riders:
- Children’s Term Rider – up to $20,000 per child
- Term Riders – 10, 20, or 30-year riders may be added for insured or additional insured.
- Waiver of Premium for Disability
If you are looking for term life insurance, don’t buy State Farm.
Using the following example, State Farm’s rates don’t even make the top 10 in America.
Male, age 45, Florida, the best underwriting rate class for $500,000 of 20-year term life insurance.
- State Farm’s rate – $655 annually.
- John Hancock – $534
- Banner Life – $534.88
- Symetra – $538.02
- AIG-Corebridge – $538.10
- Protective Life – $538.13
- Pacific Life – $541.10
- Transamerica – $545.00
- North American – $570
- Lincoln National – $579.66
- Securian – $580.90
When you need term life insurance, ask us for a free no, pressure, no-obligation quote that will beat State Farm.
Universal Life Insurance by State Farm
State Farm offers a universal life insurance policy that may accumulate cash value over time.
- Coverage Amounts:
- Ages 0-17 – Starting at $25,000
- Ages 18-54 – Starting at $50,000
- Ages 55-85 – Starting at $25,000
- A choice of level or increasing death benefit
- Riders available:
- Level Term Rider
- Children’s Term Rider
- Guaranteed Insurability Option
- Waiver of Monthly Deduction for Disability
- Flexible Care Benefit Rider
Guaranteed Insurability Option – This is a pretty unique option, as I haven’t seen this with other companies.
The Guaranteed Insurability Option allows you to purchase additional life insurance without a medical exam.
The additional coverage is available at standard rates, and the option ages are 17, 22, 25, 28, 31, 34, 37, 40, 43, 46, and 49.
Survivorship Universal Life by State Farm
State Farm offers a survivorship life insurance policy that couples may use for estate planning
- Coverage Amounts Start at $250,000
- Issue Ages – 18-90 (18-78 in CA)
- Riders Available:
- Estate Preservation Rider
- Level Term Rider
- Waiver of Monthly Deduction for Death or Disability
Estate Preservation Rider – Provides additional coverage during the first four years of the policy to aid in estate planning.
Joint Universal Life Insurance by State Farm
This may be the most unique life insurance product offered by State Farm.
More commonly known as a first-to-die policy in the industry, it is a life insurance policy that covers two lives but pays the death benefit upon the death of the first person.
Coverage amounts start at $100,000
The policy is available for ages 18-85.
Riders available include level term riders, children’s term riders, waiver of monthly deduction for disability, and the Guaranteed Insurability Option.
Whole Life Insurance by State Farm
State Farm offers a dividend-paying whole life insurance policy.
Several premium paying options exist with the whole life product, including:
- Pay all years to age 100
- Limited Pay – 10, 15, or 20-year payment plans
- Single Premium Whole Life Insurance Payment
Dividends may be paid depending on the company’s performance.
Riders available include a Waiver of Premium for Disability, Guaranteed Insurability Option, and Payor Insurance rider.
A final expense whole life insurance policy is available from State Farm. The maximum amount available is $15,000 of coverage.
Overall, State Farm’s life insurance products are designed to provide flexible coverage options, help customers protect their loved ones, and plan for the future.
Does State Farm Provide Good Customer Service?
State Farm is consistently ranked among the best in the insurance industry for service. The company has an extensive network of agents and customer service representatives trained to provide policyholders with good customer service.
State Farm offers multiple channels for customers to reach them, including phone, email, and social media. Its customer service representatives are available 24/7 to assist with policy-related questions or concerns.
Final Thoughts
State Farm is best known for its home and auto insurance products.
While several life insurance products are available, more competitive options are available whether you want term life insurance, universal or whole life.
Please take a few minutes to complete your request today, and we’ll provide you with comparisons to your State Farm agent’s quotes. Thank you.
