You may know State Farm for its catchy commercials, but it’s the company. One of the biggest Individual life insurance underwriters in the US offer a number of term life, whole life and universal life policies that cover you and your family. In this State Farm Life Insurance review, we at the policy team discuss the available coverages and what customers are saying about the insurance.
State Farm Life Insurance Overview
State Farm issued its first life insurance policy in 1929. Today the company has more 19,000 agents Nationally and has the highest AM Best. A++ financial strength rating. For customer satisfaction, State Farm ranks No. 1 in JD Power 2021 American Individual Life Insurance StudyMaking it our top recommendation for customer experience.
You can purchase State Farm term life insurance quotes online, but some units require a phone call. For example, it’s important to contact a State Farm agent to discuss whole life and universal life insurance options. State Farm does not sell policies in Massachusetts and Rhode Island, so residents in those states will have to look elsewhere for coverage.
Types of life insurance offered
Life insurance coverage It provides a tax-free death benefit to the beneficiaries on the death of the policyholder. Your loved ones can use cash death benefits to pay for funeral expenses and other living expenses. There are no restrictions on what expenses users can use the funds for.
State Farm offers three types of life insurance – term life insurance, whole life insurance and universal life insurance. Additional support such as a child term rider and a care benefit rider allow you to customize your cover and benefits.
Lifetime warranty
Life insurance policies cover you for a limited period of time. It expires at the end of the term unless you die within the period or renew or change the policy. State Farm offers the following policy term life insurance options:
- Choose a contract: 10, 20 or 30 year terms with coverage starting at $100,000. The maximum eligibility age is 75 for a 10-year term, 65 for a 20-year term and 45 for a 30-year term.
- Return of premium period: 20 or 30 year terms. If you don’t die within that period, the premium will be refunded, and the cover will start at $100,000. The maximum eligibility age is 60 years for a 20-year term (55 if you use tobacco) and 45 for a 30-year term.
- Fast Response Time Guarantee: Terms of 10 years (or until you reach the age of 50, whichever comes first). Maximum coverage of $50,000 and no medical examination required.
Whole life insurance
Whole life insurance It is a permanent policy that covers you as long as you make the premium payments. Whole life policies pay a death benefit, have a fixed premium and can build cash value. State Farm offers the following comprehensive life policies.
- Full life: Guaranteed rate premium and cash value accrual.
- Fixed Payment Whole Life: Premiums can be paid for 10, 20 or 30 years. After that, coverage will continue, but you can stop making payments.
- Single Premium Whole Life: Premiums are paid at once.
- Final Cost: The coverage is designed to cover $10,000 to $15,000 plus final living expenses. You must be between 50 and 80 years old to be eligible.
Universal life insurance
Universal life insurance is permanent life insurance where premiums and coverage are fixed. State Farm has three universal life insurance policies:
- universal life; Adjustable coverage and premium with cash value reserve.
- Remaining Universal Life: Cover for two persons where death benefit is payable on the death of the last person on the policy.
- common universal life; Cover for two persons where death benefit is payable on the death of the first person on the policy.
State farm life insurance rates
Life insurance costs vary, and life insurance companies analyze risk factors to determine your insurance rate. Factors that affect premiums include:
- Age: Policy rates generally increase with age.
- Gender: Men usually get more value than women because women live longer.
- Health: Being in good health can help you qualify for lower premiums, while having a medical condition can increase your premiums.
- family medical history; Family members’ medical conditions may affect your rate.
- hobbies and activities; Participating in risky hobbies or working in high-risk jobs such as construction or truck driving can increase your risk.
- Type of Cover: Term policies are more affordable than permanent policies.
Below are sample term and fixed life insurance costs at State Farm:
Life insurance cost
Sample values are for a 25-year-old woman in Illinois with $250,000 in coverage and in good health.
The cost of permanent life insurance
A sample price is for a 25-year-old woman in Illinois with good health and $100,000 in coverage.
*Sample quotes retrieved from State Farm website on April 6, 2023.
State Farm Life customer reviews
Despite its high rating on JD Power’s service survey, State Farm has received polarizing reviews from customers on third-party review sites.
Some customers rave about State Farm’s responsiveness and how professional its insurance agents are, while others complain about phone wait times and the frustration of trying to get someone on the phone.
“Great insurance and amazing customer service. They take more time to explain and evaluate policy needs and changes; This is what everyone wants. Thanks for all your input and help! “… – Lisa Johnson via Trustpilot
“I am very fortunate to work with women in the Seattle office. They were there right away for my questions, got a great price on my insurance, and I completely trusted them to make sure we were safe. We have been on the phone with them since we first met with them, and they are professional and follow through on everything they say. – Debbie Bennett via Trustpilot
“State Farm’s 1-800 customer service line operators are the rudest and most disrespectful people I have dealt with this year. Avoid this company at all costs unless you sue them. – Andrew G. via the Better Business Bureau
“Terrible wait times on the phone. Calling to ask about a claim, and the wait time is between 42 minutes and 1.5 hours. What a joke. No wonder their prices are so low. – No service included.” – LP via Trustpilot
We reached out to State Farm for comment and the following was the response.
“We are proud of the incredible service our more than 19,000 State Farm agents provide in our communities. We’ve been there to help our customers prepare and recover from unexpected situations for over 100 years, and we’re thrilled that so many customers choose State Farm.
“We rely on a number of factors to evaluate our performance; internal, external and direct customer feedback. We always strive to provide excellent customer service and incorporate all of these factors to ensure that we exceed our customers’ expectations.”
Bottom line
Some customer reviews of State Farm on Trustpilot and the BBB are less than stellar, but J.D. Power’s survey results show the company generally gets better customer satisfaction ratings than other private life insurance companies.
If you’re not sure what type of insurance you need, you can find a variety of options with clearly defined features on State Farm’s website. And you can contact one of the many agents nationwide for help. Choosing the best policy for your family.
Methodology: Our system for ranking the best life insurance companies
Our aim at the Guides Home team is to provide you with comprehensive, unbiased advice that you can trust. To rate and rank life insurance companies, we developed an in-depth methodology and analyzed each company by combing policy information online, talking to agents on the phone, reading customer reviews to understand the typical customer experience, and evaluating third-party financial reliability scores.
After collecting this information, we ranked each company in the following categories: coverage, drivers, availability and ease of use, and brand trust. To know more: Read the full article Life insurance method For review and score providers.
Taylor Medin In the year In 2013, as a recent college graduate, she began blogging about her experiences stretching a dollar. Eventually, that passion grew into a career researching personal finance topics and educating people like her—everyday consumers. You’ll find her writing, looking for travel deals, or trying (and often succeeding) on a DIY project.
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