State Farm Life Insurance Review

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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
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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.

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

State Farm offers term life insurance in three varieties: Select Term, Mortgage Life insurance, and Return of Premium 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.

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 Life Insurance

State Farms life insurance products for businesses include group life insurance, which businesses may offer to employees as a benefit, as well as key person life insurance, which is used by some businesses and startups to insure personnel who are vital to the business.

State Farm Term Life Insurance

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.

State Farm 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.

State Farm 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.

State Farm 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.

State Farm Bundling Discounts

Life insurance rates are determined by actuarial tables and individual health considerations. Older customers, or customers with preexisting 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 Customizability

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 preexisting health condition which was not disclosed on the application.

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:

State Farm 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.

State Farm 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.

State Farm 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.

State Farm Life Insurance Overall Rating

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.

State Farm vs Competitors

Get started securely through Bestow Life Insurance’s website
Disclosure: *excludes New York
Age Requirements
18-59
N/A
1 Minute Review

Bestow offers 2 kinds of life insurance policies: 20-year level term policy or a 10-year level term policy.

Through its policies, you may qualify for up to $1 million in term life insurance. That may seem like a sizeable sum, but if you have a spouse and children, you have to consider the cost of things beyond your mortgage, such as daycare and eventually college, as well as the loss of wages over time.

Bestow uses its proprietary technology to underwrite your insurance policy, so the application process is much faster than with traditional life insurance companies. They’re also backed by Munich Re and North American Company for Life and Health Insurance, 2 A+ rated insurance companies.

Best For
  • People who are looking for short-term life insurance
  • Individuals who don’t want to go through the hassle of having a medical exam or blood work done to get coverage
Pros
  • Plans start at just $8/month
  • Decent coverage options if you need insurance quickly and without hassle
Cons
  • Offers 2 types of plans; does not offer whole or universal life insurance policies
  • The 10- and 20-year plans not available to users under 21 or older than 55
Age Requirements
18 – 100
N/A
1 Minute Review

Northwestern Mutual offers a variety of life insurance policies that are suitable for a wide range of people. Policies are available in all 50 states, although some policies and riders may not be available in every state. The company has strong financial strength ratings and an above-average rating when it comes to consumer complaints. 

To get a quote from Northwestern Mutual, you have to talk to one of its agents. However, you can browse information on its website and use the coverage calculator tool to estimate how much life insurance coverage is recommended for your family.

Best For
  • Affordable term life insurance that can be converted to a permanent life insurance policy later
  • Adding riders to a life insurance policy
Pros
  • Strong financial strength ratings and a low number of consumer complaints
  • Several types of life insurance policies available
  • Offers other financial planning, insurance and investment products and services
Cons
  • Lack of clarity about the product offerings on Northwestern Mutual’s website
  • Can’t get a quote or apply directly for a policy online
get started securely through Fabric Life Insurance’s website
Age Requirements
21 – 60
N/A
1 Minute Review

Fabric offers term life insurance, free digital will creation and other tools to help you better your family’s financial life. They’re the one stop shop for young families looking for financial security.

Fabric offers 10, 15, 20, 25 and 30 year term options and coverage ranging from $100,000 to $5 million.

Fabric offers highly reviewed online customer service through its app and website and has the highest TrustPilot rating in its class.

Best For
  • No exam required for most
  • Those who want to avoid the hassle of insurance salesmen
  • New or expecting parents looking for a broader suite of financial tools
Pros
  • Affordable premiums
  • Free digital will creation
  • Free app with helpful tools for parents
  • Apply and see your rate in less than 10 minutes
Cons
  • No term life coverage in New York or Montana
  • Can’t increase coverage after purchasing
Age Requirements
18 – 80
N/A
1 Minute Review

With more than 12 million active customers, Transamerica Corp. is one of the biggest names in the life insurance industry. Transamerica offers a wide array of life insurance products — everything from term to a variety of permanent life insurance products, including whole, universal and variable life.

Transamerica life insurance policies are available to anyone ages 18 to 80, with coverage starting at just $25,000 and going as high as $10 million. In addition to term and permanent life insurance policies, Transamerica offers final expense insurance and any number of riders to help customers customize their policies.

Best For
  • Coverage with chronic conditions
  • High benefit policies
  • Smokers
Pros
  • Term life policy quotes and purchase available online
  • Wide array of products
  • Comprehensive online resources
  • No medical exam required for many term policies
Cons
  • Below-average scores from the National Association of Insurance Commissioners (NAIC) and J.D. Powers
  • Policies purchased through agents only
  • Disproportionate number of customer complaints
get started securely through Ladder’s website
Disclosure: Ladder Insurance Services, LLC (Cal. license # 0K22568; Ark. license # 3000140372) offers term life insurance policies: (i) in New York, on behalf of Allianz Life Insurance Company of New York, New York, NY (policy form # MN-26); and (ii) in all other states and the District of Columbia on behalf of Allianz Life Insurance Company of North America, Minneapolis, MN (policy form # ICC20P-AZ100 and # P-AZ100). Only Allianz Life Insurance Company of New York is authorized to issue life insurance in the state of New York. Insurance policy prices, coverages, features, terms, benefits, exclusions, limitations and available discounts vary among these insurers and are subject to qualifications. Each insurer is solely responsible for any claims and has financial responsibility for its own products.
Age Requirements
20 – 60
N/A
1 Minute Review

Ladder offers policies with no hidden fees, on-the-spot underwriting and a streamlined website. Coverage ranges from $100,000 to $8 million and you can adjust your coverage over time as needs change.

You can choose a 10, 15, 20, 25, or 30-year term. Ladder also offers up to $3 million in coverage without a medical exam — just answer a few health questions and complete the application to get an instant decision.

Ladder doesn’t impose policy, cancellation or processing fees and you can cancel at any time. Take three steps to get Ladder insurance:

  1. You can apply for life insurance coverage with Ladder right now via the online application.
  2. Find out whether you’re instantly approved.
  3. Accept your offer — including affordable prices and no hidden fees.

Its price lock guarantee ensures your premium won’t increase as your health changes and you age. Policies in New York are issued by Allianz Life Insurance Company of New York and in the other states and DC by Allianz Life Insurance Company of North America. You can receive a refund within the 1st 30 days if you’re unhappy with your coverage and you can cancel at any time.

 

Best For
  • Term life insurance
  • Online application
  • Policyholders between 20 to 60 years of age
Pros
  • Up to $8 million in coverage
  • Price lock guarantee
  • No policy fees
  • 30-day money-back guarantee
  • Adjustable coverage
Cons
  • No policy riders
  • Term life insurance only

Frequently Asked Questions

Q

Does State Farm offer life insurance?

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Does State Farm offer life insurance?
asked
A
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Yes, State Farm offers life insurance in addition to the many other types of insurance products on its roster. You may be eligible for bundling discounts if you have several types of insurance from State Farm.

answered
Q

How do I cancel my State Farm life insurance policy?

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How do I cancel my State Farm life insurance policy?
asked
A
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To cancel your State Farm life insurance policy, you can contact them in 1 of 3 ways: call your local State Farm agent by phone, cancel by mail, in person with your agent at a local State Farm office. To cancel, you’ll need your name, address, birthdate and policy number to start.

answered
Q

What is State Farm’s mailing address to cancel?

1
What is State Farm’s mailing address to cancel?
asked
A
1

Corporate Headquarters
State Farm Insurance
One State Farm Plaza
Bloomington, IL 61710

answered

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Methodology

Benzinga crafted a specific methodology to rank life insurance. To see a comprehensive breakdown of our methodology, please visit our Life Insurance Methodology page.