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State Farm Life Insurance Review

see how State Farm compares

1 Minute Review

State Farm offers a selection of life insurance products designed to meet the needs of most customers. All the basic policy types are covered by this national insurer, with coverage options that are easy for consumers to understand. Some less common types of life insurance are not well represented and, as always, customers are encouraged to get quotes from multiple insurers.

Best For

  • Customers who have existing policies with State Farm
  • Auto insurance is discounted up to 17% if bundled with life insurance through State Farm

Pros

  • State Farm website provides easy life insurance quotes and helpful information to guide the process
  • A nationwide network of over 18,000 agents provides access when questions arise
  • Sizable discount on auto policies for customers who also purchase life insurance

Cons

  • Premiums may be higher than some competitors, depending on individual rating considerations
  • Less flexibility in term lengths then some competitors

Who’s State Farm Life Insurance for?

Beginning in 1922 as a single-line insurer, State farm now offers over 100 products and services. While well-known for home and auto insurance, and currently the nation’s largest auto insurer, State Farm is a life insurance company at its core.

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Families wishing to consolidate their insurance policies with one insurer, including life insurance, can find a home for nearly any common insurance need with State Farm. Agents are well versed in life insurance products and actively work their insurance books of business to cross-sell life insurance products wherever they see a gap in coverage. Customers new to life insurance will find that agents or representatives are eager to assist and discuss coverage options.

State Farm Life Insurance Products

  • Term Life Insurance – Term life insurance provides life insurance for a specific period of time. This type of Life Insurance is especially well-suited to those with financial obligations for a set number of years. For example, term life insurance is often used in combination with mortgages or other large loans, or for those who have young dependents. In these cases, the financial obligations will be met after a set number of years and buyers may not need life insurance beyond that point. State Farm offers term life insurance in three varieties: Select Term, Mortgage Life insurance, and Return of Premium Term Life Insurance.
  • Whole Life Insurance –  Whole life insurance is among the group of insurance products called permanent life insurance, which is intended to provide insurance for an entire lifetime. Often, whole life insurance policies are purchased while younger because the premiums are usually higher than a term policy for an equal dollar amount of coverage.
  • Universal Life Insurance – Universal life insurance is also intended as permanent life insurance, but with an investment element which can help build cash value within the policy.  Universal life insurance also offers some flexibility in premium amounts If the policy has sufficient cash value. Universal Life policies are more complicated products than term life insurance or standard whole life insurance. Much fewer customers choose universal life products over term or whole life.
  • Variable Universal Life Insurance –  Variable universal life takes the investment element of universal life a step further, providing cash value growth opportunities which are uncapped. However, while the investment elements of the policy can grow, they can also go down, Introducing an element of risk to the life insurance policy.
  • Final Expense Insurance – State Farms final expense Insurance offering is a form of whole life insurance available to customers 50 to 80 years old. The policy provides a $10,000 death benefit, and because of this low amount, the policy is intended to provide for only basic final expenses. These might include funeral and burial costs, as well as some remaining medical bills.
  • Small Business: State Farms life insurance products for businesses include group life insurance, which businesses may offer to employees as a benefit, as well as key man life insurance, which is used by some businesses and startups to insure personnel who are vital to the business.

Focus on Term Life: State Farm Term Life Options

Due to its low premium cost relative to whole life insurance, term life insurance is the most popular type of policy sold by State Farm and many other insurers. In most cases, families purchase life insurance as income replacement in the event of an early death and purchase this coverage to meet existing financial obligations. With this goal in mind, term life insurance is well-suited to the needs of most families who have mortgages, young children, or other larger financial obligations that have a fixed end date.

  • Select Term – State Farm’s primary term life insurance product is called Select Term,  and is available in three-term lengths: 10 years, 20 years, and 30 years. Eligibility for term lengths is based on age. For example, State Farm’s Select Term 30 policy is only available for customers ages 20 to 45. Coverage amounts begin at $100,000. Using State Farm’s online quoting tool, a 47-year-old male of average height and weight in good physical condition returned a monthly premium cost of about $34 for $100,000 in coverage and a 20-year term. By contrast, the same amount of coverage for a State Farm whole life insurance policy was quoted at about $204 per month. However, the whole life policy would continue coverage until age 100 without an increase in premium.
  • Return of Premium Term Life Insurance – State Farm’s return of Premium term life insurance product is an attractive option for some, at the expense of a higher monthly premium.  The same 47-year-old male who could be insured for $34 a month with $100,000 death benefit using State Farm’s Select 20 policy, was quoted at about $108 per month for the same coverage with the return of premium life insurance product.  While the premium is higher for a return of premium term life insurance, if the insured does not die within the term period, the premiums are returned in full. Some customers utilize this product successfully as a type of mortgage insurance, paying premiums for the policy for 20 years and then using the lump sum return of premium to pay off the remaining balance on the mortgage.
  • Mortgage Life Insurance –  Available in 15 or 30-year terms, State Farm’s mortgage life insurance product is designed specifically to align with mortgage obligations. State Farm’s mortgage life insurance is subject to the same age limitations as its Select Term life insurance product, and customers age 45 or older will not be able to select a 30-year term.

Policy Types and Options Rating: 4 Stars

Available Discounts & Tips on Getting the Best Rates

Life insurance rates are determined by actuarial tables and individual health considerations. Older customers, or customers with pre-existing health conditions, will face higher premiums than younger or healthier applicants, but health decisions such as being a non-smoker can help make premiums more affordable.  

Because of the way life insurance premiums are determined, based largely on age and health, there isn’t any flexibility through discounting nor are there the abundance of coverage options found with other types of insurance. However, purchasing a life insurance policy through State Farm can save you up to 17% on your auto insurance policy with State Farm. Having other policies will not create a discount towards your life insurance policy, but payments can be combined with one payment plan if preferred.

State Farm Life Insurance Coverage Selections

Important Coverages and Considerations

State Farm provides some ways for customers to customize their coverage. For example, life insurance buyers have the option to add another adult to their policy or purchase a rider to add their children to their policy. In both cases, some limitations may apply. A waiver of premium for disability option is also available for an additional cost.

While it’s often best to purchase your State Farm life insurance through an agent who can answer questions, it may also be useful to experiment with State Farm’s online life insurance quote tool and make a list of available options and riders to ask about. This method ensures a thorough conversation on this important coverage and begins to set expectations on price.

Most State Farm life insurance policies require a physical in addition to the application questionnaire regarding your health. The physical can be scheduled at your convenience within a short time after applying for coverage. Life insurance policies come with a contestability clause which allows the insurer to contest the settlement if death occurs within the first two years of policy issuance if the insurer suspects or can prove a pre-existing health condition which was not disclosed on the application.

Other Related Insurance Types Offered by State Farm

Not all insurance types offered by State Farm are available in all states or for all agents. However, the major types of insurance such as home, auto, and life insurance should be available nationwide and likely through all agents.

State Farm also offers:

  • Home Insurance
  • Renter’s Insurance
  • Auto Insurance
  • Personal Articles Insurance
  • Business Insurance
  • Medicare supplements
  • Disability insurance
  • Annuities and Investments
  • Loans and Online Banking

Customer Service

Agencies – State Farm is a national and sure that’s also a neighborhood insurer, with over 18,000  agents across the country. Its familiar red and white signs signifying an agent office can be found within easy travel distance in most areas of the country. State Farm agents or generally quite knowledgeable, particularly about common life insurance products, and can help guide your purchase. As with many major purchases, and to ensure your needs are met, it’s best to do some research on your own before beginning the conversation.

Website –  State Farm’s website provides an excellent quoting tool which can help you price out a life insurance policy. Be aware, however, that rates may vary from the online quote based on the medical exam or changes in coverage options. Making changes to your life insurance policy isn’t quite as simple as making changes to your auto insurance policy, so website functionality is limited in this regard.  Simpler tasks such as bill payment or setting up a payment plan are available through State Farm’s website.

Mobile App – State Farm does provide a mobile application, however, its functionality in regard to life insurance is much more limited than for other insurance types such as auto insurance.

Customer Service Rating: 5 Stars

Claims Support

State Farm offers three ways to submit a life insurance claim. Customers can visit an agent who will walk them through the paperwork. Claims can also be started on State Farm’s website or by calling the life insurance claims specialists at 877-292-0398.Most claims are handled quickly and professionally. Representatives are sensitive and courteous during what is a difficult time for families. In some cases, settlement checks are sent to your local agent who can then help you expedite any remaining paperwork.Claims Support Rating: 5 Stars

Consumer Ratings

State Farm Life Insurance JD Power Ratings

Overall Policy Offering Price Rating Billing Rating Interaction Rating Claim Rating
5 5 5 5 5 5

http://www.jdpower.com/ratings/study/U.S.-Home-Insurance-Study—Homeowners-Insurance/1503ENG

State Farm Life Insurance A.M. Best Rating: A++

http://ambest.com/home/ratings.aspx

Pricing & Value

Using the 47-year-old male from earlier examples, State Farm’s Select 20 policy was quoted at $34 per month for a 20-year $100,000 policy. A five-minute time investment found an online quote from a national competitor at $19 per month for the same coverage. Less expensive options may be available depending upon your individual rating information. However, many find value in State Farm’s nationwide network of agencies and feel comfortable that their claim will be handled professionally with the company.

Pricing & Value Rating: 4 Stars

Customer Support

Phone: 1 (800) 782-8332

Website: https://www.statefarm.com/customer-care/contact-us

Find an Agent: https://www.statefarm.com/agent/

Email/Contact Form: http://online2.statefarm.com/forms/sf/commentsOrQuestions.xhtml

Twitter: https://twitter.com/StateFarm

Final Thoughts

As a national insurer providing both business and personal lines of insurance, State Farm is a household name trusted by many.  State Farm’s life insurance offering, while more limited than some competitors, can meet the needs of most consumers. Comparing online quotes othee life insurance providers quickly found a lower price than offered by State Farm, however life insurance pricing is individually subjective and customers are encouraged to shop several providers. Pricing aside, State Farm has a vast network of agents who can assist in choosing coverage, managing policies, or if there is a claim. JD Powers Ratings were an impressive 5 stars in all areas surveyed.

Overall Rating: 4.5 Stars