State Farm's life insurance review for 2024

State Farm's excellent customer service and history of paying dividends make it a top pick for life insurance. Additionally, it is one of the few major carriers that offers joint life policies and return-of-premium riders. However, term life insurance policies from State Farm do not come with as many additional riders as other companies offer, and you will need to work with a State Farm agent to purchase any policy.

State Farm life insurance review

State Farm life insurance pros and cons

What you should know about State Farm life insurance.

Pros

• Ranked first for customer satisfaction by J.D. Power
• Claims can be filed online
• Converting most term life policies to whole life is typically possible without a medical exam.
• Multiline discount of up to 17% if you bundle with other policies.

Cons

• All policies must be purchased from a State Farm agent
• Only no-medical-exam policy is final expense insurance
• Doesn't offer variable life insurance
• Not available in Massachusetts or Rhode Island

Types of State Farm life insurance

In all states except Massachusetts and Rhode Island, State Farm provides term, whole, and universal life insurance.

Term life insurance

Term life insurance is valid for a limited period, usually between 10 and 30 years, and has lower rates compared to whole or universal life insurance, which remains active as long as premiums are paid.

State Farm has three term life insurance policies:

• New applicants must be 75 or younger, but you can renew up to age 95. Coverage starts at $100,000. Premiums remain level for the life of the policy.
• State Farm offers a unique return of premium policy that refunds your premiums if the policy term ends without any payout. Your premium rate remains the same throughout the term, and coverage begins at $100,000.
• For individuals aged 50 or younger, a $50,000 policy can be approved on the same day without a medical exam. The coverage lasts for up to 10 years or until the policyholder turns 50, whichever comes first.

Whole life insurance

Your whole life insurance policy will remain active as long as you continue to make premium payments. The policy has the potential to accumulate cash value, which can be withdrawn or used to cover monthly premiums. Additionally, you can borrow against the cash value of your policy.

State Farm's whole policy options include:

• This policy guarantees a standard whole life with no premium increases and coverage that stays in place as long as you continue to pay. Additionally, it accumulates cash value and qualifies for dividends.
• You can pay off the policy's full cost over 10, 15, or 20 years, with death benefits starting at $100,000.
• A single premium whole life policy offers coverage of $15,000 for individuals up to age 80, with a one-time payment.
• This final expense insurance policy, intended for funeral expenses, guarantees approval and pays between $10,000 and $15,000 to individuals aged 45 to 80, with no medical exam or health questions. Immediate effect is possible, and a similar policy is available for New Yorkers aged 50 to 75 with a $10,000 payout.

In 2023, State Farm, a mutual company, paid out $725 million in dividends to its policyholders, which is a substantial increase from the $603 million paid in 2022.

Universal life insurance

Universal life insurance offers the flexibility of premiums, cash value growth, and payouts, while remaining in place throughout one's entire life.

• The cost of standard universal life insurance varies based on age: for those aged 17 or younger or between 55 and 85, coverage begins at $25,000, while for those aged 18 to 54, coverage starts at $50,000.
• A joint life insurance policy covers two individuals and provides a payout after the first person's demise. At State Farm, this coverage is available to individuals aged 18 to 85, with a minimum coverage amount of $100,000.
• Joint survivorship life insurance: A policy that pays out when the second person dies, with State Farm offering such policies from ages 18 to 90 (78 in California) and starting death benefits at $250,000.

State Farm life insurance riders

Although State Farm offers several riders, it has fewer options than its competitors and none are free.

• Up to age 25, children are insured for up to $20,000, with the option to convert to a permanent policy on their 25th birthday.
• Tax planning issues in the first four years of your policy can be covered with an additional death benefit for estate preservation.
• This endorsement, similar to an accelerated death benefit, allows you to access a portion of your policy's death benefit if you are chronically ill and receiving long-term care. However, it is not available in California or New York.
• You can purchase extra insurance coverage at specific ages or significant life events without undergoing a medical examination.
• Level term life insurance offers coverage to a second person, usually a spouse, until age 95.
• If you have a minor on your payor insurance policy and become disabled or pass away, premiums will be waived until you recover or the child turns 25.
• Offers term-life insurance coverage up to age 95, with premiums based on a 10-, 20-, or 30-year team period.
• If you're unable to work due to illness or injury, your premiums will be waived for the duration of your disability.

State Farm life insurance rates

State Farm's quoted rates for a 20-year, $500,000 term life insurance policy for healthy male and female non-smokers are lower than the national average. However, your premiums may vary significantly based on your age, health, lifestyle, and other factors.

Other State Farm insurance

State Farm, the nation's largest provider of home and auto insurance policies, has been recognized for its high customer satisfaction ratings and has been included on CNBC Select's list of the best car insurance companies. In addition to its auto insurance offerings, State Farm also provides home insurance policies.

• Pet insurance (through Trupanion).

Bundle your State Farm life insurance with an auto, life, or homeowners policy to save up to 17%, as stated by the company.

State Farm customer satisfaction

J.D. Power's 2023 individual life insurance survey ranked State Farm as the top provider, with excellent customer satisfaction ratings based on interactions, prices, communication, product offerings, and statements. Additionally, State Farm received significantly fewer complaints than other life insurance companies, as reported by the National Association of Insurance Commissioners.

Over 100 unresolved complaints led the Better Business Bureau to give State Farm a C- rating.

In 2023, State Farm received an A++ financial strength rating from A.M. Best, indicating its ability to pay out benefits to policyholders.

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How State Farm compares to other life insurance

Here's how State Farm stacks up against two leading life insurance providers.

State Farm vs. Guardian

Although Guardian and State Farm are similarly priced, State Farm offers a slightly lower monthly payment of $19.14 for a 25-year-old woman with a $250,000 benefit and a 30-year term, compared to Guardian's quote of $27.

State Farm can offer a 17% bundling discount because it offers various types of insurance, while Guardian does not have any multiline discount.

J.D. Power's survey of life insurance companies ranked State Farm as the top provider for customer service, while Guardian fell below the industry average.

Although State Farm does not have as many built-in endorsements as Guardian, it does offer an additional cost for a waiver of premium rider.

State Farm vs. Amica

A 25-year-old woman would pay $15.28 a month for a 30-year term policy from Amica, which pays out $250,000, compared to $19.14 a month quoted by State Farm.

Amica offers term or permanent life policies without a medical exam if you're in good health, while State Farm only provides no-exam policies for final expenses. Unlike Amica, State Farm offers universal life insurance, including survivorship policies.

Both companies provide auto and homeowners insurance, allowing policyholders to receive discounts for bundling.

How do I buy life State Farm insurance?

To purchase a term or permanent life insurance policy from State Farm, you must speak with an agent. You can find an agent near you by entering your address on the State Farm website or by viewing the list of agents by state.

You can reach State Farm customer service at 800-782-8332, pay your bill by calling 800-440-0998, and file life insurance claims by calling 877-292-0398.

You can also file claims, pay premiums, track claims, use life insurance calculators, read explainers, and chat with a live representative online.

Is State Farm life insurance right for me?

If you're seeking an insurer with exceptional customer service and a comprehensive discount package, State Farm may be the ideal choice.

If you prefer a hands-off approach and want to avoid dealing with an agent or taking a medical exam, you may want to consider another provider.

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