State Farm Life Insurance Review
State Farm life insurance (review below) offers term and whole life policy options with a respectable industry reputation and an A++ financial rating from A.M. Best. You could quality for State Farm life insurance rates starting as low as $11/mo, or you may find cheaper quotes when you comparison shop online. Start now with free life insurance quotes from our comparison tool below.
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UPDATED: Oct 15, 2020
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|Key Info||Company Specifics|
|Current Executives||CEO – Michael L. Tipsord|
|Number of Employees||56,788|
|Total Sales/ Total Assets||$959,000,000,000 / $16,000,000,000|
|HQ Address||One State Farm Plaza
Bloomington, IL 61710
|Premiums Written – Individual Life||$65,861,617|
|Best For||Strong Financial Ratings|
This State Farm life insurance review will answer any questions you may have about choosing this company and will tell you what to look for when shopping for term life insurance quotes.
Shopping for life insurance isn’t something most of us look forward to, but knowing about the company you’re interested in will relieve some of your stress. Even if you have done the research, there are lots of questions you might still have, like: What is term life insurance? Why do I need life insurance? How much life insurance should I get? How do I find the best rates?
Even if you have a life insurance company in mind, it’s always wise to shop around. This State Farm insurance company review will ensure that you find the best deal and the best coverage available.
Let’s get started. Before jumping into our State Farm life insurance review, start comparing State Farm with other life insurance companies now with our FREE quote tool.
Shopping for State Farm Life Insurance Quotes
When shopping for life insurance, you need to do research. That research should include learning the basics of insurance. Also, make sure to compare coverage and rates from different companies.
When deciding what insurance to buy, it would be smart to learn basic information about life insurance. Remember that you should buy a policy that will help replace the income that will be lost in the case of death, barring you don’t have a high mortality risk for any medical or vocational reason. You’ll need to identify how long you want to provide and if you need to replace your entire income or only a portion.
Life insurance will allow financial peace of mind that your loved ones will be taken care of.
Average State Farm Life Insurance Rates by Age
I am sure you are asking yourself, what is the average life insurance cost per month? The table below will help you find the average life insurance rate by your age.
|Policy Holder Age, Marital Status, & Gender||State Farm Average Rates||Average Annual Rates|
|25-Year-Old Single Female||$143.00||$164.50|
|25-Year-Old Single Male||$164.00||$183.61|
|35-Year-Old Married Female||$166.00||$170.47|
|35-Year-Old Married Male||$175.00||$190.40|
|45-Year-Old Married Female||$238.00||$247.50|
|45-Year-Old Married Male||$239.00||$274.59|
|55-Year-Old Married Female||$341.00||$417.01|
|55-Year-Old Married Male||$396.00||$543.23|
|65-Year-Old Single Female||$684.00||$898.76|
|65-Year-Old Single Male||$955.00||$1,308.00|
Almost all of State Farm’s rates are under the average.
It should be noted there was a State Farm rate increase. 2019 was a year in which most companies raised their rates.
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State Farm’s Life Insurance Policies
State Farm is located all over the world so it should be easy to find one near you. Google it. For example, just type in State Farm Life Insurance and the state you live in. For example, type in State Farm Life Insurance, MN, or State Farm Life Insurance California.
Life insurance is like a box of chocolates. There are many different options for you to choose from.
Like State Farm home insurance, the company’s life insurance branch is lesser-known. Although it is not as known as State Farm car insurance, the life insurance branch of the company offers multiple types of life insurance coverage: term, whole, and universal coverage.
They offer return of premium and instant answer term life insurance. The company offers limited pay, single-premium, and final expense whole life insurance. They also have survivorship, joint, and universal life insurance.
All of these policies have different features.
Keep reading for a more thorough explanation of the differences.
Term Life Insurance
State Farm is one of the best term life insurance companies. Consumer reports usually rank State Farm towards the top of their lists.
Term life insurance is an insurance that’s offered for a specified set of time, called terms. Terms are often in 10-year, 20-year, 30-year, and 40-year chunks of time. The return of premium term life insurance is a level premium payment that’s available for 20 or 30 years.
If you outlive the life of the coverage, then you’ll receive all the premiums back.
The Instant Answer term life insurance will provide a death benefit of $50,000. It will provide a death benefit until the age of 50 or a maximum of 10 years. You can apply, get an underwriting decision, and purchase your policy on the same day.
There are many different types of life insurance to choose from.
Whole Life Insurance
Whole life insurance, also called permanent life insurance, will cover you for your entire lifetime.
Limited Pay whole life insurance is a type of life insurance that can be paid in full in 10, 15, or 20 years. This means that you could avoid paying premiums during retirement if you purchase the policy young enough. This is a good policy for families and most adults.
Single-Premium whole life insurance is a type of insurance that will cover you for your life after you pay a single lump-sum premium. If you are asking, can I take money out of my State Farm life insurance, then yes. This coverage does offer a cash value. The premium will be $15,000 and is available to ages 0–80.
Final Expense insurance is insurance that will pay a $10,000 death benefit for final expenses.
Universal Life Insurance
Universal life insurance is a type of permanent insurance. It offers low premiums and an investment portion in your coverage.
The Survivorship universal life policy covers two people. The policy won’t pay out until both of the covered individuals die. It’s an affordable option that’s less expensive than buying two individual policies and is a great option for spouses who want to leave money for their children or grandchildren.
The coverage eligibility starts at 20 years of age until 90. If you reside in California, then the eligibility ages are 20 to 78. This policy offers coverage starting at $250,000. This is still a good option for seniors.
A joint universal life policy also covers two people. This type of coverage is very similar to survivorship universal life insurance except it will pay out the death benefit when the first of the two insured parties passes away.
Burial & Final Expense Life Insurance
Many people don’t realize how expensive burials can be.
State Farm offers Final Expense insurance. This insurance is a death benefit that will be paid to the beneficiary for a funeral and final expenses. The policy amount is $10,000. You must be 50 to 70 years of age to qualify unless you live in New York. If you live in New York then the ages of eligibility are 50 to 75.
Many insurance companies will have you take a medical exam and fill out questions about your health. You can get life insurance with a medical condition or if there are conditions that are hereditary in your family will.
The VA’s website explains the government’s life insurance and how to gain access to that life insurance if you qualify.
Other Life Insurance Products
State Farm is actually very famous for their car insurance. Many people are not aware that the company offers auto, home, and health insurance. The car insurance portion of State Farm offers many policies and options.
If you are interested in refinancing your home or getting health insurance, while getting life insurance, then ask an agent if they have any bundles available. You can pay for multiple types of insurance, with one company, in one bill.
Life Insurance Riders
Most life insurance companies offer riders that you can pair with your traditional policy. Riders are supplemental insurance.
State Farm’s website only features their Flexible Care Benefit Rider.
This rider is for the event that you become chronically ill. If you are eligible, the rider will allow you to access a portion of the policy’s death benefit every month. The site says to contact an agent or start a quote to learn about additional riders.
How to Get a Quote Online with State Farm
Getting a quote from State Farm is extremely easy. Go to State Farm’s home page — it’s found at www.statefarm.com.
Find the header that says Get A Quote and click it. Choose Life as your product. Also, pick the state you live in from the drop-down box.
Press Get Go. This page will complete your life quote pre-check. You will simply be entering basic information.
First, select your birth month. Then, choose your birth date. Next, select the year you were born.
Now, click continue. Fill out your basic information.
This page will have you answer demographics to give you a quoted rate for the plans available to you.
The bottom part of the application is a breakdown of the amount of coverage you will need.
Fill out the coverage amount you’ll need. State Farm offers a coverage tool for a detailed estimate.
Click Get Quote when you’re finished with the form.
Get your life insurance options and your quoted rates. This format gives you a visual comparison of all the different policy quotes at once.
If you would like to compare policies, then just click the Compare Policy box under the plans you’re interested in.
Customize your policy. If you pressed Select and Continue, then the next page will allow you to customize your policy. You simply have to press the Select and Continue button.
If you chose to compare policies, then the site will bring you to a page that shows you the policy options that you were interested in, side by side.
If you want further information about a specific policy then press Select and Continue under that policy.
Canceling Your Life Insurance Policy
State Farm has made canceling your policy very easy. They offer you multiple options to choose from when canceling.
How to Cancel
State Farm has made it fairly easy to cancel your policy. Go to the State Farm homepage. The website can be found at www.statefarm.com. The homepage has recently changed.
Scroll to the bottom of the page. You want to find the box at the bottom that has hyperlinks to many parts of the State Farm site. Find the heading that says Customer Care Center. Now, find Manage Your Account.
Click Manage Your Accounts — it will be under the Customer Care Center heading. Scroll down the page until you find the heading “Have More Questions?” then click “How to cancel your policy.”
Clicking will take you to a new page. This page gives you multiple options on how to cancel your insurance policy. The first option is to Cancel By Phone. The State Farm Life Insurance phone number is located in the table at the top of the page.
The next option is to Cancel By Mail followed by Cancel In Person. This option also allows you to find a State Farm life insurance agent in your area by typing in your zip code and clicking Find an Agent.
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How to Make a Claim with State Farm
If you want to make a claim, then go to www.statefarm.com. Find the heading named Claims and click it. A box will pop-up and ask if you would like to File a Claim or Track a Claim.
It will take you to a new page.
Click Start a Claim and choose Life as your claim type. You’ll need the insured party’s name, date of birth, state of residence, your policy number, and the date and cause of death of the insured party.
If you’re having problems with your State Farm claims, State Farm also offers a live chat option. This is found in the red bubble that says Chat. Just click the button if you’re interested in the chat option.
State Farm’s Customer Experience
The NAIC Complaint Index will give you information about the number and types of complaints that are made about a company. The NAIC has provided 55 complaints against State Farm life insurance.
J.D. Power’s highest award that they give is the Among the Best Award. This is the award that J.D. Power gave State Farm in 2018. State Farm is still in the top-ranking life insurance companies, according to J.D. Power.
State Farm’s Programs
State Farm offers many resources on their website to help you learn about life insurance. They provide many tools to help assist you in your search. They offer a life insurance calculator and links to learn enough about life insurance to make an informed decision.
When it comes to programs, it seems that the company offers more information about car insurance.
Design of Website/App
The design of the website is very user-friendly. It’s as easy as filling out the information inside of the box and receiving an immediate quote.
The headers at the top of the site make it easy to find what you’re looking for.
For life insurance, click Life. This will give you access to all of the information and tools related to life insurance.
About State Farm Life Insurance
State Farm was founded on June 7, 1922. It was started by a retired insurance agent named George Jacob Mecherle as a single-line automobile insurance agency. They now own five lines of business.
Mecherle’s dream was to do the right things and operate his company fairly. The company states that they still follow his vision today, having passed many seat belt laws and fighting for driver safety.
It’s one of the most well-known and used life insurance companies. Now, they even have State Farm bank.
State Farm’s Ratings
There are multiple life insurance company rating websites that you can check to see how reliable the company you’re interested in is. Comparing credit ratings can be useful when comparing companies. It can help you answer the question, “What is the best life insurance company?”
If you are asking yourself, Is State Farm good for life insurance, then the answer is yes.
State Farm has very good ratings.
A.M. Best has rated State Farm with an A++ rating. The Better Business Bureau (BBB) rated State Farm with an A+. Moody’s has rated State Farm with an Aa. Standard & Poor’s (S&P) rating system gave State Farm an AA.
State Farm’s Market Share
State Farm’s market share as of 2018 was 6.42 percent. In 2017, the company’s market share was 6.38 percent. In 2016, the company had a market share of 6.48 percent.
The company market share was highest in 2016.
|Companies||Market Share 2018||Market Share 2017||Market Share 2016|
|New York Life||5.68%||5.70%||5.61%|
|Minnesota Mutual Group||2.70%||2.52%||2.51%|
The market share of a company is the total industry sales over a fiscal year divided by the company’s total revenue of sales.
State Farm’s position for the future looks promising.
State Farm’s Online Presence
State Farm has 2.15 million people who’ve liked their Facebook page. They post multiple times a week. The company also posts video content regularly.
The company’s YouTube page has 170,000 subscribers and its page has many videos.
State Farm offers a Color Full Lives series.
This series is a podcast featuring Angela Yee, Tonya Rapley, and Aminatou Sow. These three women of color discuss their lives and financial tips. The series is meant to be a celebration of African American women and meant to start discussions about their financial future.
The video below is a preview of Season 4 of the podcast.
State Farm’s Twitter page has 102,900 followers. They tweet multiple times a week. They also have a State Farm Latino Twitter that’s in Spanish.
State Farm’s LinkedIn account has 325,724 followers. The company LinkedIn profile posts almost every day. They also have a company Instagram account. The company’s Instagram account has 58,100 followers. There are 659 posts.
State Farm’s Commercials
State Farm has many commercials. You can find them on State Farm’s YouTube account. The company has a new Jake from State Farm, and he is featured often on their website and commercials.
The company motto is, “Like a good neighbor, State Farm is there.” You’ll hear the company motto often in its commercials, one of which is featured below.
The ads are funny and entertaining.
State Farms commercials also feature a lot of celebrities and sports stars.
They have recently had Chris Paul, Terry Crews, Alfonso Ribiero, and Aaron Rodgers in the company’s commercials.
State Farm even has commercials in Spanish.
State Farm in the Community
State Farm is extremely active in the community. They have multiple company grants, foundations, and initiatives that they use to help.
The Good Neighbor Citizenship® company grants fund organizations and institutions. Their State Farm Companies Foundation has a matching gift program. This program was started to encourage State Farm associates to support higher education and charitable organizations.
State Farm serves many different communities. They have designated initiatives to attempt to serve the African-American, the Asian and Pacific Islander, the Hispanic, and the LGTBQ communities.
State Farm’s Employees
State Farm is actually considered one of the best life insurance companies to work for. State Farm has reviews from employees on Indeed, Payscale, and Glassdoor.
Indeed has rated the work-life balance is rated 3.6 of 5. Payscale has a lot of ratings for State Farm. They have an overall company rating of 3.3 out of 5. Glassdoor has given State Farm a ranking of 3.2 out of 5 for State Farm.
State Farm reviews seem generally average across the board.
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Pros & Cons of State Farm Life Insurance
So, is State Farm a good insurance company? Let’s take a look at the pros and cons.
Pros of State Farm Life Insurance
Is State Farm good life insurance? It is and this is why.
They are a very well-known and trusted company and consistently rank among the top 10 insurance companies.
They are also very philanthropic and do a substantial amount of volunteer work and donating to the community. They have a stable looking financial outlook and offer very low life insurance premiums. They did write more premiums in 2018 than in 2017.
Cons of State Farm Life Insurance
One con with State Farm is that the company market share did decrease. The company would seem more financially stable if its numbers had not dropped.
Not all of State Farm’s policies can be adjusted or changed unless you go in person.
Many people like the availability of being able to do everything online and State Farm does have specific issues that have to be dealt with in person and with an agent.
There are some states that State Farm does not sell in or that they offer policies for a smaller amount of ages.
State Farm Life Insurance: The Bottom Line
State Farm is a very well known and respectable company. They are extremely involved in the community and they are financially stable. Now that you’ve learned about this company, are you ready to compare other companies?
Don’t wait! Now that you’ve read our state farm life insurance review, click our FREE quote tool below to get quotes from top life insurance companies.
Frequently Asked Questions: State Farm Life Insurance
Here are answers to frequently asked questions about State Farm.
#1 – What do I need to do to change my beneficiary with State Farm?
Unfortunately, State Farm doesn’t allow you to change a beneficiary online. You’ll have to make an appointment with a local State Farm agent, and they will help you.
#2 – Will State Farm still pay if the cause of death is suicide?
On State Farm’s website, in the fine print, it does say that there may be limitations on payment in the case of suicide within the first two policy years. Call your insurance agent to discuss if the policy can be paid out. They should know all of State Farm Life Insurance payout options.
#3 – Can I combine my auto insurance, life insurance, and homeowner’s insurance through State Farm?
Yes, most companies will let you bundle different types of insurance together. You should make sure that this will be a cheaper option than buying them separately. Bundles may save you money, but they may not.
#4 – Does State Farm offer any no medical exam life insurance policies?
Yes, State Farm does offer insurance that has a no medical exam term life feature. The no medical exam policy that State Farm offers is the Instant Answer Term Insurance policy.
#5 – Can I change my life insurance policy with State Farm?
State Farm will adjust many types of insurance policies. You must contact your local life insurance agent to make sure that your policy can be changed.
#6 – What happens if I apply online with State Farm and my application is rejected?
If your application is rejected and you applied online, then the application will be sent to a State Farm agent. You can contact a local State Farm agent to continue the application process.
#7 – How does State Farm Life Insurance work?
It is as easy as going to your local State Farm Agency or signing up or inquiring online. The company will ask for basic information, a medical exam, and you will pay them a monthly, or one-time sum, for a policy that your beneficiaries will receive when you die. For more detailed instructions, read the article above.
#8 – What is the cost of a $500,000 term life insurance policy?
A $500,000 term life policy would be more expensive than a whole life policy of the same amount. The amount you will pay each month largely depends on the amount of the policy you purchase and how long the term is.