State Farm Life Insurance – Everything You Need to Know

State Farm Life Insurance Company is widely recognized for its home and auto insurance, but how does its life insurance compare to the best options available? This guide provides an in-depth look at products, financial strength, customer service, and how it compares to other life insurance companies.

Founded in 1929, State Farm has grown into a major player in the life insurance industry, with over 7.8 million life insurance and annuity policies in force.

The company operates in all states except Massachusetts, New York, and Wisconsin. New York and Wisconsin policies are issued under State Farm Life and Accident Assurance Company. However, no policies are available in Massachusetts.

State Farm has excellent financial stability, making it a reliable choice for policyholders. The company holds high financial strength ratings from major rating agencies:

• AM Best Rating: A++ (Superior) – The highest rating available, shared by top-tier companies like Guardian, Mass Mutual, New York Life, and Northwestern Mutual.
• Fitch Rating: AA – A strong rating reflecting financial stability.
• Moody’s Rating: Aa1 – The third-highest rating, similar to Allstate (Aa3) and Guardian (Aa2).
• S&P Rating: AA – The third-highest rating, comparable to companies like Guardian (AA+) and Lincoln National (AA-).

These ratings highlight State Farm’s ability to meet obligations and reflect its conservative approach as a mutual holding company.

State Farm offers several life insurance options, but its products may not be the most competitive, especially for those with high-risk medical conditions.

State Farm’s Select Term product includes:

• Coverage starting at $100,000
• Term Lengths – 10, 20, or 30-year term
• Issue Ages:
  • 10-year – Ages 18-75
  • 20-year – Ages 18-65
  • 30-year – Ages 18-45
• Available Riders:
  • Children’s Term Rider – (up to $20,000 per child)
  • Term Riders – (10, 20, or 30-year riders for you or an additional insured)
  • Waiver of Premium for Disability

Cost Comparison: State Farm’s term life rates are significantly higher than competitors. For example, a 45-year-old male in Florida seeking $500,000 of 20-year term life insurance would pay:

• State Farm’s rate – $655 annually.
• John Hancock – $534
• Banner Life – $534.88
• Symetra – $538.02
• Corebridge Financial – $538.10
• Protective Life – $538.13
• Pacific Life – $541.10
• Transamerica – $545.00
• Prudential – $570
• Securian – $580.90

Better options are available elsewhere if you’re shopping for term life insurance. We can provide a free, no-obligation quote to find better rates.

State Farm offers a universal life insurance policy that can build cash value over time.

• Coverage Amounts:
  • Ages 0-17: $25,000+
  • Ages 18-54: $50,000+
  • Ages 55-85: $25,000
• A choice of level or increasing death benefit
• Riders available:
  • Level Term Rider
  • Children’s Term Rider
  • Guaranteed Insurability Option
  • Waiver of Monthly Deduction for Disability
  • Flexible Care Benefit Rider

The Guaranteed Insurability Option is unique. It allows policyholders at ages 17, 22, 25, 28, 31, 34, 37, 40, 43, 46, and 49 to buy more coverage at standard rates without medical underwriting.

State Farm offers a survivorship life insurance policy for estate planning:

• Coverage Amounts Start at $250,000
• Issue Ages – 18-90 (18-78 in CA)
• Riders Available:
  • Estate Preservation Rider
  • Level Term Rider
  • Waiver of Monthly Deduction for Death or Disability

Estate Preservation Rider—This rider provides additional coverage during the first four years of the policy to aid in estate planning.

This is a unique product in the industry. It covers two individuals but pays the death benefit upon the first person’s death.

• Coverage starts at $100,000
• Issue ages: 18-85
• Riders include Level Term Riders, Children’s Term Riders, Waiver of Monthly Disability Deduction, and Guaranteed Insurability Option.

State Farm offers a dividend-paying whole life insurance policy with flexible payment options:

• Traditional Pay – Premiums paid to age 100
• Limited Pay – 10, 15, or 20-year premium payment options
• Single Premium – One-time payment for lifetime coverage
• Final Expense – A simplified issue whole life policy with a maximum of $15,000.

Dividends may be paid depending on the company’s performance.

Riders available include a Waiver of Premium for Disability, Guaranteed Insurability Option, and Payor Insurance Rider.

Overall, State Farm’s life insurance products are designed to provide flexible coverage options, help customers protect their loved ones, and plan for the future.

State Farm consistently ranks among the best for customer service in the insurance industry.

• Multiple Contact Channels: Policyholders can reach agents via phone, email, and social media.
• 24/7 Support: Customer service representatives are available around the clock.
• Strong Agent Network: With a large network of licensed agents, policyholders have direct access to guidance and support.

However, since State Farm sells life insurance only through captive State Farm agents, you won’t get access to multiple carriers or competitive rates unless you shop independently.

While State Farm is a well-respected company with solid financials and customer service, its life insurance policies are not the most competitive.

Pricing is higher than many leading insurers, and as independent agents, we can often find better coverage at lower rates.

If you’re considering life insurance, request a free, no-pressure quote today. We’ll compare State Farm’s rates with those of other top providers to help you find the best deal.