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State Farm is a well-known insurance company with corporate headquarters in Bloomington, Illinois, offering a broad range of property and life insurance policies. State Farm was founded in 1922 and continues to earn above-average customer satisfaction ratings. Here’s what to know if you’re trying to figure out if State Farm life insurance is right for you.
State Farm Life Insurance
State Farm Life Insurance
State Farm pros and cons
Pros:
- Strong financial ratings from A.M. Best
- 19,000 State Farm agents nationwide
- Possible to convert term life to whole life
Cons:
- Some policies don’t cover those over the age of 45
- You must purchase policies through a State Farm agent
- State Farm isn’t available in all states
State Farm life insurance overview
State Farm offers policies directly to those who qualify. State Farm has a wide selection of term and permanent life insurance policies. It’s important to note that different coverage amounts can be available based on the type of policy you get in addition to factors such as age, location and health.
State Farm policy coverage options
State Farm term insurance
You can access several options, including policies that allow you to renew beyond your term up to an advanced age, such as 65 or 75. It’s also possible to get a Return of Premium Life policy that will return your premium after 20 or 30 years. Additionally, an Instant Answer Term policy offers coverage for 10 years — or until you reach age 50 — and offers $50,000 in coverage.
- Must get at least $100,000 in coverage.
- Keep the coverage up to age 95 for an additional cost.
- Return of premium option for those who live after the term expires.
- Terms of 10, 20 and 30 years.
State Farm whole life insurance
Depending on the policy, you might be able to tailor your whole life policy to different needs. For example, some whole life policies will allow you to continue receiving whole life coverage and benefits even if you only pay premiums for a set number of years. State Farm also has a guaranteed issue policy designed to help cover final expenses.
- Various coverage amounts range from $10,000 to more than $1 million.
- Medical issues won’t lead to rejection in some cases.
- Some policies earn dividends.
- You can generally access accrued cash value.
State Farm universal life insurance
State Farm touts its universal life coverage as a potential estate planning tool, as well as a way to build cash value. State Farm offers joint universal life insurance policies that couples can use for long-term planning. Various customization options can help you get additional coverage later or get coverage for children.
- Various coverage amounts range from $25,000 to $250,000.
- Medical exam might not be required under the Guaranteed Insurability Option.
- Minimum coverage amounts vary according to age and other factors.
- You can generally access accrued cash value.
State Farm riders
State Farm life insurance policies come with a large number of riders and customization options, each with its additional costs and requirements. It’s important to note that not all riders are available in every state. On top of that, some riders are designed for specific types of insurance. You will need to speak with a State Farm agent to access these riders. Some common riders include:
- Flexible Care: When added to a universal life insurance policy, it can help you access a portion of your death benefit for needs during your lifetime.
- Family coverage: When added to a term life policy, this rider can get coverage for a spouse and children.
- Disability Waiver: If you’re experiencing total disability, you can add this rider to avoid paying premiums for a set period of time.
- Level term: Extend coverage up to age 95 with a set premium.
State Farm rates
Life insurance rates are based on various factors, including age, gender, coverage amount and where you live. You can get a quote online from State Farm or speak with an agent. State Farm term life insurance rates start at $15.02 per month based on a 10-year term. Your rate could vary due to riders, your age and other factors.
State Farm customer service
State Farm received the highest overall customer satisfaction rating for individual life insurance in the J.D. Power 2023 Individual Life Insurance Study. The company scored 843 out of 1,000, putting it ahead of the insurance companies Nationwide and MassMutual.
State Farm also had its “A++ superior” financial strength rating from AM Best affirmed in 2023, indicating that the company is likely to meet its obligations and pay on its policies if required. There are some questions about the property and casualty portions of State Farm, but the company overall is considered strong.
How State Farm compares
| State Farm | Ethos Life | Nationwide | |
|---|---|---|---|
Term lengths | Up to 30 years | Up to 30 years | Up to 30 years |
Bundled savings | Yes | No | Yes |
Permanent life available | Yes | No | Yes |
Coverage amounts | Up to $1 million | Up to $2 million | Up to $1.5 million |
Rate* | $15.22 per month | $11.75 to $18.95 per month | $16.50 per month |
*Rate based on a 25-year-old female in excellent health living in Illinois with $250,000 in coverage and a 20-year term life policy.
Methodology
Our analysis begins with customer feedback on the company under review from J.D. Power and studies from Life Happens and LIMRA. Next, we look at the following metrics:
- Cost relative to the company’s competitors.
- Financial strength and ability to meet obligations.
- Policy types, features and riders.
- Customer satisfaction.
Frequently asked questions (FAQs)
Is State Farm legit?
Yes, State Farm has been in business for more than 100 years and is a well-known insurance company.
Who is State Farm insurance backed by?
State Farm issues its own policies as a mutual insurance company. This means that the firm is owned by policyholders and members. Because of this direct model, you must go through the website or find a local agent to get a State Farm policy.
Does State Farm insurance require a medical exam?
Most policies might require a medical exam. However, Instant Answer and the Guaranteed Insurability Option offer lower coverage amounts without a medical exam. Find out from an agent whether you need a medical exam.
Does State Farm have a waiting period?
You might have a waiting period for approval, especially for permanent insurance. There might be a waiting period on certain types of passing, such as the policy not paying a death benefit if suicide is the cause of death within two years. An agent can provide information on potential waiting periods and restrictions on benefit payouts.
This story was written by NJ Personal Finance, a partner of NJ.com. The information presented here is created independently from the NJ.com editorial staff, and purchases made through links in this article may result in NJ.com earning a commission.
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