State Farm life insurance review: Low rates, discounted bundles
State Farm has low rates and high financial ratings, and current customers could get a discount on their auto insurance when they buy life insurance.
By
Logan SachonLogan SachonSenior Managing Editor, Life Insurance & ResearchLogan Sachon is a former senior managing editor of life insurance and research at Policygenius. As a journalist, her work has appeared in The Guardian, Business Insider, CNN Money, BuzzFeed, Money Under 30, VICE, New York Magazine, and elsewhere.
Edited by
Adam MorganAdam MorganEditorial DirectorAdam Morgan is an editorial director at Policygenius who leads the life insurance team. Previously, he led editorial teams matrixed across multiple financial publications at Red Ventures — including Bankrate, NextAdvisor, Million Mile Secrets, and others. As a journalist, his work has appeared in Esquire, Scientific American, The Guardian, Los Angeles Times, and elsewhere.
Our proprietary ratings methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the “Ratings methodology” section for more details.
5.0
AM Best rating
AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).
A++
Cost
Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).
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The bottom line
State Farm is best known as the largest provider of auto and home insurance in the U.S., and they also sell life insurance with competitive rates. But if you want more than $50,000 in coverage, you’ll need to take a medical exam, and the term policy doesn't offer an accelerated death benefit rider.
Note: State Farm products are not available through the Policygenius marketplace.
Pros
Competitive rates
Life insurance policyholders can get a discount on their State Farm auto insurance
Cons
Not available in MA
No accelerated death benefit rider on term policies
No-med term max is $50,000
Basic coverages offered
Term life insurance: Select Term Life is State Farm’s traditional term life insurance product for people age 18 to 75. Policies are available for terms of 10, 20 and 30 years for coverage starting at $100,000. State Farm also offers Instant Answer Term Life, an instant-issue policy for people age 16 to 45. Coverage is available up to $50,000 for a 10 year term or until age 50, whichever is second. Return of Premium Term Life is State Farm’s return of premium life insurance policy. It is available for 20 or 30 year terms for coverage amounts starting at $100,000.
Whole life insurance: State Farm’s whole life insurance products include traditional whole life and single premium whole life. These policies may be dividend paying.
Final expense insurance: State Farm’s final expense policy is available to people 50 to 80 for one coverage amount: $10,000.
Universal life insurance: State Farm offers universal life insurance, a type of permanent life insurance with flexible premiums. It also offers two policies that cover two people: universal joint life insurance, which pays out when the first of the two insured has died, and universal survivorship life insurance, which pays out when the second has.
Variable universal life insurance: State Farm offers variable universal life insurance (VUL) through a partnership with Pacific Life. VUL is a type of permanent life insurance with flexible premiums, a flexible death benefit, and options to invest your cash value.
Additional coverages offered
Children’s term rider: For an additional cost, the child rider provides life insurance coverage to the insured’s children.
Disability waiver of premium rider: For an additional cost, the waiver of premium rider waives premiums during a period of disability.
Select term rider: For an additional cost, adds coverage for another person on your policy.
Ratings methodology
Price
5.0/5
Our price rating scale compares insurance companies’ life insurance costs for a sample $1 million 20-year term policy for a 35-year-old female non-smoker with a Standard Plus health classification. State Farm’s rates put it in the most affordable category according to our rating system.
Customer experience
5.0/5
Our customer experience scale uses data from the National Association of Insurance Commissioners (NAIC) complaint index. State Farm has a score of 0.2, which means it receives fewer complaints than expected for a company of its size. (The expected number would be 1.0.)
Transparency
4.3/5
Our transparency rating scale measures how easily shoppers and policyholders can find information about an insurer on its website. State Farm gets points for having clear contact information, a support hub, and policy details (including coverage amounts and term lengths) clearly posted outside of its quoting tool. It lost points for not having its average rates posted.
Financial strength
4.9/5
Our financial strength rating is a weighted combination of three industry-leading metrics to measure a company’s financial health: A.M. Best, Standard & Poor’s, and Moody’s. State Farm has an A++ rating from A.M. Best, an AA rating from Standard & Poor’s, and an Aa1 rating from Moody’s.
A closer look at State Farm
Who is State Farm best for?
State Farm’s life insurance policies are best for current State Farm customers who are looking to save on their auto insurance by taking advantage of the company’s multiple-policy discount. They won’t be able to save on their life insurance premiums this way, however.
What makes State Farm unique?
State Farm is unique in that it does not offer an accelerated death benefit rider with its term policies. This rider, which allows you to access a portion of the death benefit if you’re diagnosed with a terminal illness, is included with most other companies’ term life policies.
Who should consider a different life insurance company?
People who want to skip the medical exam for term life insurance should look elsewhere, as State Farm only offers no-med term life for a max of $50,000, and only until age 50 or for a term of 10 years, whichever is later.
State Farm’s history, reputation, and social responsibility
The State Farm Mutual Automobile Insurance Company was founded in 1922 in Illinois, and it sold its first life insurance policy in 1929.
Today the Fortune 500 company is the largest provider of home and auto insurance in the United States. Its products are sold exclusively by State Farm agents, and it still operates as a mutual company. [1]
Life insurance products are underwritten by the State Farm Life Insurance Company, except for in New York and Wisconsin, where they are underwritten by State Farm Life and Accident Assurance Company. State Farm does not offer life insurance in Massachusetts.
State Farm’s sustainability goals include reducing greenhouse gas emissions by 50% by 2030. Its ESG investments include $50 million for emission reduction technologies, $100 million for racial equality and justice, and $30 million on workforce skills development through Arizona State University. [2]
State Farm in the news
In December 2022, State Farm announced a deal to purchase renewable energy credits for its corporate facilities in Bloomington, IL. (State Farm)
In September 2022, State Farm expanded its annual celebration of Good Neighbor Day (Sept. 28) to Good Neighbor Month in order to further champion good deeds around the country. (State Farm)
State Farm life insurance rates
State Farm does not publish its life insurance rates.
State Farm has high ratings for its financial stability, including an A++ from A.M. Best.
How do I contact State Farm?
To contact State Farm, including the claims support team, call 800-782-8332 or visit the State Farm website.
References
Policygenius uses external sources, including government data, industry studies, and reputable news organizations to supplement proprietary marketplace data and internal expertise. Learn more about how we use and vet external sources as part of oureditorial standards.
Logan Sachon is a former senior managing editor of life insurance and research at Policygenius. As a journalist, her work has appeared in The Guardian, Business Insider, CNN Money, BuzzFeed, Money Under 30, VICE, New York Magazine, and elsewhere.
Adam Morgan is an editorial director at Policygenius who leads the life insurance team. Previously, he led editorial teams matrixed across multiple financial publications at Red Ventures — including Bankrate, NextAdvisor, Million Mile Secrets, and others. As a journalist, his work has appeared in Esquire, Scientific American, The Guardian, Los Angeles Times, and elsewhere.
