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State Farm is a well-respected life insurance carrier with many customizable products, including some with no medical exam requirement, but shoppers with pre-existing conditions should look elsewhere for more affordable premiums.
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State Farm Life Insurance
Wide range of term, whole, and universal products
No medical exams for some policies
Lots of riders to choose from
Temporary coverage available
Great customer satisfaction ratings
Solid financial stability
Higher-than-average monthly premiums
Few term lengths available
Policy changes made through agents
Not available in Massachusetts
THE BOTTOM LINE
State Farm is a highly-rated life insurance carrier with a respectable reputation and many customizable products, including some with no medical exam requirement. But smokers and people with pre-existing medical conditions should look elsewhere for more affordable premiums.
State Farm is number 9 on Policygenius' list of the best life insurance companies, based on cost, financial confidence, third-party customer ratings, life insurance policy options, and ease of application.
STATE FARM LIFE INSURANCE SPOTLIGHT
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J.D. Power Rating
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IN THIS ARTICLE
Wide range of term, whole, and universal products. State Farm boasts on its website that it has over 100 auto, home, and life insurance products to choose from. The life insurance offerings don’t quite reach the triple-digits, but there’s still plenty to consider in the term, whole, and universal categories. And if you combine policies you may be eligible for discounts.
No medical exams for some policies. State Farm’s Instant Answer term life product does not require a medical exam, and people aged 16 to 45 can apply in minutes. The only downside is the benefit is a fixed amount of $50,000. If you need more than that you’ll have to look at other options.
Lots of riders to choose from. Want to customize your policy with a variety of add-ons and features? State Farm lets you cover children, spouses, waive premiums in the event of disability, and a lot more. Just be sure to read the fine print and hash out the details with an agent because riders and their features vary by state.
Temporary coverage available. State Farm offers at least 60 days of temporary coverage for its customers during the policy approval process.
Great customer satisfaction ratings. According to customer rating sites and services, folks love their State Farm insurance, likely due to the wide range of customizable products, flexibility when it comes to paying premiums, and the professional and courteous customer service staff.
Solid financial stability. Financial rating firms all say State Farm is nice and stable, and able to take care of customers when it's time to pay.
Higher-than-average monthly premiums. Unfortunately, State Farm customers pay more than the industry average for coverage. Unless you’re completely healthy without any pre-existing conditions, you’ll probably want to look at other life insurance carriers for affordable rates.
Few term lengths available. Depending on the product there are only two or three term lengths available to choose from, which may limit options for some customers.
Policy changes made through agents. If you want to change your beneficiary, cancel your policy, or make any kind of changes to your account you need to call up customer service or your local State Farm agent. Currently, there’s no way to change anything online or by mail.
Not available in Massachusetts. If you’re looking for life insurance in the state where freedom apparently began, you’ll have to keep searching. State Farm does not offer its services to Bostonians, Cape Codders, or Patriots fans (unless they live out-of-state, maybe).
Unless you’re in excellent health, you’re going to pay a higher-than-the-average amount for State Farm’s term life monthly premium costs. Of course, rates will change based on individual factors like age, gender, health, and location. But if you’re a smoker or have a pre-existing medical condition, you’ll likely want to look elsewhere for affordable life insurance coverage.
Using State Farm’s online quote tool, we gathered sample quotes for State Farm’s Select Term life insurance product for a non-smoking male in “very good” health living in California applying for a 20-year term with $500,000 of coverage.
Here’s the breakdown:
|AGE||STATE FARM AVERAGE||INDUSTRY AVERAGE|
State Farm’s term life insurance costs are higher than the industry average, at least when it comes to $500,000, 20-year policies for people in “very good” health. For comparison, AIG offers an average rate of $25.34 for a healthy male in his 20s for a $500,000, 20-year policy.
The premiums won’t increase for the initial term length of the policy, but they will go up if you decide to keep it after the initial term ends.
Compare State Farm Life Insurance to other top-rated companies
State Farm Life Insurance may suit your needs, unless you want to pay lower monthly premiums. Compare top insurers in one spot and find your best rate with Policygenius.
State Farm is one of the largest life insurance carriers in the U.S. based on the number of policies in force. It’s also a Fortune 500 company with nearly 20,000 agents ready to take and manage calls, and close to 83 million active accounts, including home and auto. If you think that sounds like a financially firm…firm, you’d be right.
Here’s the full breakdown:
A.M. Best, a credit rating firm that specializes in the insurance industry, gives State Farm the best rating a company can get, A++. State Farm has the superior ability to fulfill its financial obligations to customers, and its outlook is stable.
Moody’s rates Aa1 for State Farm, which is the second-highest rating the financial analysis firm can give. Basically, State Farm has a stable outlook and is a low-risk investment, with more than enough revenue to pay off your benefits.
Standard & Poor’s gives State Farm an AA. That’s the second-highest rating S&P can give a company. Like the Moody’s rating, it basically means State Farm is able to meet its financial commitments to customers.
State Farm Life Insurance Company earns high grades from the industry experts. Do its 8 million life insurance customers feel the same way?
For the most part, yes. Here’s the breakdown:
The Better Business Bureau, which grades companies based on their advertising and customer complaints, gives State Farm an A+ rating. As of April 2020, over 1,000 complaints have been closed in the last three years, and over 400 complaints closed in the last 12 months. It has a 1-star customer rating, based on an average of over 200 customer reviews.
Consumers Advocate, which focuses on a company’s reputation, policies, and stability, gives State Farm an “excellent” 4.8 out of five stars. The review also mentions an “excellent” Trustpilot score of four out of five stars.
Consumer Affairs lets customers directly review and rate companies. Turns out, customers have lots of nice things to say about State Farm. Based on over 300 reviews and ratings submitted in the last year, State Farm is rated 4 out of 5 stars, which is fairly high for a life insurance company on this particular website.
J.D. Power, which ranks insurance companies based on policies, price, and the clarity of billing and policy information, places State Farm in second place on its 2019 U.S. Life Insurance Satisfaction Study. That translates to a 5 out of 5 on its Power Circle rating, meaning it’s “among the best” life insurance companies out there.
The National Association of Insurance Commissioners (NAIC) tracks complaints submitted to state insurance departments. Based on their complaint index, State Farm gets a zero. That’s good! Because a score of 1 represents the baseline average, and a zero means there weren’t enough customer complaints to count. That’s pretty impressive considering there are 8 million policyholders.
State Farm has a wide variety of term, whole, and universal products, each with riders and extra features customers can use to customize their policy.
State Farm does provide temporary coverage, but the exact amount is based on the specific product and on how the applicant answers certain health questions.
State Farm offers Select Term, Return with Premium, and Instant Answer term life insurance products. Monthly premiums for all of State Farm term life products are guaranteed to stay level until the term period ends. After that, the premiums increase annually.
State Farm’s Select Term policy lets customers choose 10, 20, or 30 years of coverage, which starts at $100,000. You can pay premiums on a monthly or annual basis, and if you can keep the policy after the initial term at an increased cost, up to age 95.
Issue ages depend on the length of the term. For a 10-year term, applicants must be 18 to 75 years of age. For a 20-year term, 18 to 65 years of age. And for a 30-year term, 18 to 45 years of age.
State Farm auto insurance customers may be entitled to a discount with this policy.
The following rider options may vary from state to state.
State Farm’s Return of Premium term life insurance gives back all the policy premiums you’ve paid, if you survive the term length. This policy has term limits of only 20 or 30 years. Customers can continue their coverage after the initial period on an annually renewable basis, up to age 95. But premiums will increase year after.
Coverage minimum is $100,000. There is a cash value component that builds cash value, which you can use to pay towards your premium.
For a 20-year term, issue ages are 18 to 60 for non-smokers, and 18 to 55 for smokers. For a 30-year term, the issue ages are from 18 to 45 years.
State Farm auto insurance customers are also eligible for discounts with this policy.
Rider options may vary from state to state.
This policy requires no medical exam and takes only minutes to apply. Applicants just need to talk to an agent, or use State Farm’s online quote tool, and answer a few questions based on health. It’s the perfect option for people who need quick, last-resort, no-fuss insurance, or need to cover final medical or burial expenses.
This policy provides only $50,000 of protection for people aged 16 to 45, until age 50 or ten years after the policy’s start, whichever is longer.
There are no riders available for this policy.
State Farm allows customers to convert their term life insurance policies to a permanent plan at any time before the age of 75, regardless of health, but only during the first five years of term life coverage. Once you convert, the rates for the new permanent policy's first year will be reduced, based on what’s been paid on the previous term policy.
However, these conversion options can vary by state.
In addition to term life policies, State Farm offers whole life and universal life products, with a few differences when it comes to paying premiums.
All the following policies come with a guaranteed death benefit and build cash over time, which can be used to pay towards the monthly (or annual) premiums or cover medical expenses.
Keep in mind: Although permanent life insurance provides lifelong protection it is much more expensive than term life. Most policyholders abandon their whole life policies altogether.
State Farm’s basic whole life package includes cash value accumulation and level premiums payable to age 100. The minimum death benefit, or face amount, is $100,000.
Basically a different way to pay for State Farm’s whole life policy. Instead of paying throughout your life, you only pay for 10, 15, or 20 years. After that, you’re scot-free -- you don’t have to worry about payments and you keep the policy. Customers can pay premiums annually, monthly, semi-annually, or quarterly. The premiums will be much more expensive than usual.
Similar to the basic whole life insurance policy except you pay the premium all at once. There are no additional payments afterwards. There are dividends available for this policy, but the drawback is it’s considered a Modified Endowment Contract, which means it’s taxable.
The minimum benefit is $15,000, and anyone up to age 80 can apply.
A policy meant for final burial or medical expenses, it provides only a fixed benefit of $10,000. You may be eligible for dividends as well, but like Single Premium, this policy is also considered a Modified Endowment Contract, so it’s taxable.
Applicants ages 50 to 80, or 50 to 75 in New York, are eligible. The premium duration is to age 100.
State Farm has a few universal life policies. They’re all flexible, which means policyholders can choose how much they pay and how much their benefit will be, based on their financial situation and on State Farm’s minimum guidelines. Cash also builds with these policies, so customers can withdraw from the benefit to pay other expenses.
A lifetime policy that lets customers raise or lower their benefit and premiums as they see fit. Builds cash value.
Minimum coverage starts at $25,000 for ages zero to 17; $50,000 for ages 18 to 54; and $25,000 for ages 55 to 85.
There are two types of death benefits with this policy: A level death benefit that’s equal to the coverage you choose, and a variable amount that’s based on what’s left in your account.
This type of policy covers two people at the same time, and it’s generally cheaper than having two separate whole life or universal life policies. However, the death benefit is only paid when the second person on the policy dies. For that reason, only customers concerned with estate planning or other special circumstances should consider this plan.
Coverage starts $250,000 for applicants aged 20 to 90, 20 to 78 in California. Cash value builds and can be withdrawn.
This provides permanent protection for two insured people under one policy, similar to the Survivorship Universal Life policy, except the death benefit for this one is paid out when the first death occurs.
Coverage begins at $100,000 for applicants aged 18 to 85. Cash value builds and can be withdrawn.
State Farm has a decent amount of information on its website, including details about each life insurance product. You can get a free quote online easily by inputting basic information, and even compare State Farm policies side-by-side. There are also blog articles and FAQs shoppers can refer to.
The customer service phone line is quick, helpful, polite, and oddly funny in these tense times (one professional representative joked, “add me as your beneficiary”). Our questions about coverage and policies were answered quickly, and we only had to wait for a few minutes.
State Farm doesn’t have a live online chat available on its website, but you can call customer service or a local State Farm agent to find out more about the company’s products.
State Farm Life Insurance Company sells life insurance products in every state except Massachusetts, New York or Wisconsin. New Yorkers and Wisconsinites would need to buy from State Farm Life and Accident Assurance Company. State Farm does not sell life insurance in Massachusetts.
The Instant Answer Term life insurance product takes between five and ten minutes. Most other policies require dealing with a local State Farm agent, which will take longer.
It depends on the policy because some require medical exams, and others do not. Expect to wait one to six weeks for most policies. Coverage begins upon first payment.
State Farm delivers the policy electronically and via mail.
Unfortunately, every policy change needs to be made through a State Farm agent or by calling the customer service line. However, you can change your address and track your application status online.
State Farm lets customers pay their premiums a few ways.
State Farm allows some grace periods.
State Farm has a coverage calculator, a free online quote tool, and a mobile app which you can use to pay bills.
To file a benefits claim, the beneficiary must mail or call a State Farm agent with the following information:
Policygenius offers insurance policies from many of the nation's top insurers, who pay us a commission for our services. However, all editorial choices are made independently.
About the author
Tim Torres is the reviews editor at Policygenius. His work has appeared in Computer Shopper, Tom's Guide, and numerous other outlets over the last ten years.
Policygenius’ editorial content is not written by an insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for you.
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