State Farm Life Insurance
- A.M. Best: A++
- Fitch: AA
- Moodys: Aa1
- S&P Global: AA
State Farm is among the most reliable life insurance providers. They are also one of the largest, ranking 33rd on the Fortune 500 list for 2017.
State Farm has a powerful financial backing, excellent customer service, and multiple options for life insurance policies so that you can choose the best one for you.
There are things you should keep in mind if you are considering their products—no company is perfect. Take a few minutes to read the following State Farm Life Insurance review to help you make an informed decision.
Table of Contents:
- Is State Farm Life Insurance Good?
- How Does State Farm Work?
- What Does State Farm Offer?
- Are They Reputable?
- Pros & Cons
Is State Farm Life Insurance Good?
State Farm Life Insurance strives to offer high-quality insurance products, and they accomplish that goal. One thing to note about State Farm is that not everyone will qualify for their insurance so easily.
State Farm has been in business since 1922 and issued millions of policies. The customer service is outstanding, and they pay their claims without hassle.
You’ll enjoy a variety of policy options that allows you to get what you need.
State Farm is a solid life insurance provider, and you won’t have to worry about not being able to cash out your policy in the future.
How Does State Farm Life Insurance Work?
State Farm Life Insurance works like most other life insurance companies. You can go online or chat with an agent over the phone to purchase your policy.
It all begins with a quote.
You will need your current height and weight, date of birth, and desired coverage amount for the person you’d like to cover (or yourself). Some policy quotes have additional information requirements, but this is how State Farm works in general.
Once you receive your quote, you can decide if the policy and premium are right for you.
What Does State Farm Offer?
State Farm offers both term and permanent life insurance policies. Term policies last for a set amount of time, while permanent policies last for as long as you pay the premium.
The term policies that State Farm offers are reasonable, and you can purchase them for a lower rate than at most other companies. State Farm’s permanent life insurance policies are decent as well, but you’ll find they are more expensive than the average industry pricing.
Term Life Insurance
State Farm’s term policies come in three options: standard term, instant no-exam, and a return of premium plan. The term policies are available in ten, twenty, or thirty-year policies.
Standard Term Life Plan
The Standard Term Life policy is priced competitively and offers flexible coverage. You can choose ten, twenty, or thirty years of coverage. It expires when the term is up or when the covered individual passes away.
Instant Answer – No Exam Plan
The Instant Answer Term life policy allows you to receive an immediate answer without a medical exam. You get $50,000 in coverage that lasts until age 50 or for ten years, depending on which parameter arrives latest.
Return of Premium Plan
The Return of Premium plan means you don’t have to worry about outliving the policy. If you do, you will be reimbursed for the money that you paid into it. These policies last twenty or thirty years.
Whole Life Insurance
State Farm’s traditional whole life insurance is the most affordable whole life plan in its arsenal. The policy increases in value over the years and lasts as long as you pay into it.
If you’re looking for something more aggressive, you may want to peruse State Farm’s single premium life policy. You’ll pay a lump sum to access $100,000 in death benefits. It is a barrier for some because not everyone can afford it, but if you can, the policy accrues interest quickly.
Limited pay life combines whole life benefits with term life payment structure. You’ll choose how many years you’ll pay into the policy, and have a plan that lasts until death. The option means you’ll pay a higher premium, but it may be just what you need.
Is State Farm a Reputable Company?
State Farm is a reputable company and a not so subtle hint toward their extensive advertising. They’ve been in business since 1922 and issued millions of policies.
State Farm has reasonable ratings and reviews that further prove they’re a reputable company. A.M. gives them an A++ rating, and S&P awarded State Farm with an AA rating. They are reliable and stable—which is essential for an insurance company.
When you purchase from State Farm, you don’t have to worry about them suddenly going out of business or not paying your claim. They have a solid financial foundation and few complaints.
Pros & Cons of State Farm Life Insurance
As with any insurance company, there are pros and cons to buying State Farm Insurance.
- Low rates on term life insurance policies
- An option for term life insurance that doesn’t require a medical exam
- A solid financial foundation and a strong company history
- Limited complaints and excellent customer service
- Ranked top in the industry for customer satisfaction
- Offers both term and permanent life insurance
- Offers an option to renew your term policy “regardless of health” up to age 75
- The mobile app they offer allows you to view your details, pay your bills, and manage your policy
- Doesn’t have all the financial products that some people might be interested in, so you’ll need approach multiple companies
- State Farm Insurance isn’t available in every state
- Limited-term length options when compared to other similar plans
- Doesn’t offer an accidental death benefit rider
- Not the cheapest option
- Independent agents have been known to overprice the policies they facilitate
State Farm is a solid choice for life insurance policies in a competitive industry. They really shine with term life options, so you may want to shop around more if you’re looking for permanent life insurance products.
The company has been in business for almost a century, is top-rated for its customer service, and has substantial financial backing. All this adds up to mean that when you purchase a policy from State Farm, you can be confident in the products and services you will be receiving.