You should be aware that not all life insurance companies are currently accepting insurance applications due to COVID-19 pandemic. We'll update our reviews as we find more information about what companies are currently accepting new applications.
State Farm Life Insurance is a highly-rated, financially strong life insurance company, their diverse range of products can grow and change with you and your family’s needs over time which is a definite asset.
- Pros and Cons
- Key Takeaways
Friendly agents provide product overviews
Top ranking customer satisfaction
Great selection of add-on riders
Discounts for combining policies
Offer comprehensive range of Life Insurance plans
Plans for all age groups and life stages
No medical exam coverage for 16 to 45-year-olds
Some plans may pay dividends
Can’t quote most policy types online
Sample quotes on their site are limited
Terms and conditions vary by state
Final Expense limited to $10,000
No Medical Exam plans limited to $50,000
Sold through captive agents
Not available in Massachusetts
- State Farm has a very robust list of life insurance policies you can choose from that include term, whole life, and universal life insurance.
- Customer satisfaction recognition suggests consumers are happy with the website and agent knowledge on plans.
- You can get an instant issue policy with no medical exam if you are between the ages of 16 and 45-years old.
- The return of premium policy gives you a no-risk option to get all your money back if you outlive the policy term.
- The free look period is a way for you to review all policy terms and conditions before making a final commitment.
- Year Founded 1929
- Kinds of Plans Term Life, Whole Life, Universal Life, Survivorship Life, Joint Life
- Number of Plans 10
- Payment Options Limited Pay, Single Pay, Monthly or Annual
- Official Website https://www.statefarm.com/insurance/life
State Farm Life Insurance has built a solid reputation for providing great customer service with a varied product line for its customers for several years running. They offer options for all types of life insurance, including term life insurance, permanent life insurance, and many optional add-on riders. Here’s our review of State Farm Life Insurance to help you compare life insurance policy options and decide if this is the right life insurance company for you.
According to its website, State Farm Life is ranked #2 for the largest life insurer "based on policies in force in the U.S. since 2016." Headquartered in Bloomington, Illinois, State Farm Life was founded in 1929 and has been offering life insurance for over 80 years. State Farm Life Insurance policies are issued through State Farm Life Insurance Company (not licensed in Massachusetts, New York, or Wisconsin) and State Farm Life and Accident Assurance Company (licensed in New York and Wisconsin). State Farm does not offer life insurance in Massachusetts. They offer a full range of services online, including self-servicing of policies, an informative blog, calculators to figure out how much life insurance you need, and online quotes. State farm sells life insurance through local agents who you can meet with in person or speak to by phone to get quotes and review various options.
State Farm offers 8 different life insurance plan options that work well for people of various ages and at different stages in life. The plans also offer features that allow you to convert term to permanent, add coverage at various intervals, and in some cases, have cash values. Take a look at the full roster of policy offerings by State Farm Life below.
Term Life Insurance
Select Term Life Insurance
Select Term provides life insurance with three possible terms: 10, 20, and 30 years of coverage. Premiums are level for the term, so you won’t have any surprise increases, which makes it easy to budget. Select Term plans with State Farm can cover you up until the age of 85 (Term 10 and 20) and up to age 75 for Term 30, with an option to continue coverage without a medical exam, at an increased rate to the maximum age of 95. Once your term is up, Select Term offers the option (for an additional cost) to get more coverage up until the age of 95. Note that the additional cost may be more expensive compared to what you were paying on your term plan. For example, issue ages for the term life are:
- 10-year term available from 18 to 75
- 20-year term available from 18 to 65
- 30-year term available from 18 to 45
Select Term also offers riders, such as the option to add a spouse or child, and also to convert to a permanent life insurance policy for yourself or the insured spouse or child without an additional medical exam. Learn more about what riders State Farm offers for life insurance in our section on riders below.
Don’t underestimate the value of a rider: If you have a family, a life insurance company that offers options to add spouses or children can save you money.
Return of Premium Term Life Insurance
State Farm Life Insurance also offers a term life insurance plan with a level premium payment for a term of either 20 or 30 years. Another advantage is that you can convert your policy to permanent life insurance up until age 75 without having to take an additional medical exam.
At the end of the term, if you do not use the death benefit, you may be eligible for a return of the premiums you paid. You may also borrow money against the policy if it has accumulated values. The ability to borrow against a term policy is a special feature not available with most “term” life insurance policies. However, while reviewing the product benefits and small print of the terms, we noted that it is important to be aware that unpaid loans or withdrawals will reduce the guaranteed death benefit.
Issue ages for Return of Premium plans are:
- 20-year term: 18 to 60 years old
- 30-year term: 18 to 45 years old
- For tobacco users, the 20-year term is available up to age 55, and the 30-year term is available up until age 40
Instant Answer Term Life Insurance
The Instant Answer Term life policy is a no medical exam required policy available for people aged 16 to 45. Coverage is for $50,000 and quotes are only available by talking to an agent.
Whole Life Insurance
Whole Life insurance is a type of permanent life insurance policy. State Farm offers several plans, many of them offer tax-deferred cash values. With the Whole Life policy you have the option of accessing the cash value through loans, and you may also be eligible for dividends. Although the State Farm website mentions dividend eligibility, this does not guarantee dividends. We did not find any reference to dividend payout history on the site.
Limited Pay Life
Limited pay life insurance is a good option to choose if you only want to pay premiums for a specific length of time and do not mind paying a little more to finish your payments early. State Farm Life offers several limited pay terms: Pay 10, Pay 15, and Pay 20. You pay for the number of years you select and then can keep the policy for life after that without having to worry about premium payments. This policy also accumulates cash values.
Issue ages for Limited Pay plans are:
- Pay 10: Age 0-85 years old
- Pay 15: Age 0-80 years old
- Pay 20: Age 0-75 years old
Single Premium Life
The Single Premium life insurance plan offers you the chance to take a whole life policy but pay it off in one lump sum. Besides the advantage of not having to pay life insurance premiums, this policy is eligible for dividends and has guaranteed cash value. The disadvantage is that it is considered a Modified Endowment Contract, which has tax implications; be sure to find out more about this before selecting this kind of plan. The minimum value for this plan is $15,000 and issue age is 0-80 years old.
State Farm Life Insurance Final Expense insurance policy has a limit of $10,000 and is available for purchase from ages 50-80 and 50-75 in New York. The premium duration is to age 100.
Universal Life Insurance
Universal Life Insurance with State Farm Life is a flexible “lifetime” policy where you choose the minimum payments you want to make (subject to their guidelines).
Coverage starts at $25,000 for ages 0-17, $50,000 for ages 18-54 and $25,000 for ages 55-85.
There are two death benefit options in their universal life insurance plan:
- Level Death Benefit: With the level death benefit, it is a set amount.
- Variable Death Benefit: with the variable death benefit, the amount varies based on the value of your account.
Joint Universal Life
Joint life insurance covers two people on one policy and is a cost-efficient way to cover two people if you can’t afford (or do not want to) buy two policies. State Farm’s Joint Universal Life policy also offers a Level Term Rider that allows you to purchase additional term coverage for each person on an individual basis if you want to supplement the joint plan. The Level Term Rider allows you to convert it to a whole life policy at a later time as well.
The Joint Universal life plan also accumulates cash value, which provides the option to access that cash if needed along the way.
Survivorship Universal Life Insurance
Survivorship life insurance is a cost-effective type of universal life insurance policy that only pays out after the second person on the policy has died. Because you are covering two people on one policy, it is generally less expensive than buying two separate policies. The money you pay for this policy goes partially to the premium and partially into a federal tax-deferred cash value account. You can access the cash value if needed, but it will reduce the guaranteed death benefit and cash value of the policy until you pay it back. Loans from your life insurance policy will also accrue interest.
Does State Farm Life Insurance Offer Riders?
A life insurance rider is like an endorsement on an insurance policy. It adds extra optional coverage. State Farm Life Insurance offers one of the most comprehensive ranges of riders available covering all the bases for the add-ons you might need. Depending on the rider you choose to add, the rider can:
- Give you added flexibility
- Improve or increase coverage
- Extend coverage to a family member
- Protect your policy
Don’t underestimate the value of a rider: If you have a family, a life insurance company that offers options to add spouses or children can save you money.
List of State Farm Life Insurance Policy Riders:
Waiver of Premium Rider
Waiver of premium riders may be available for various policy types. This option allows you to have your premiums waived if you become totally disabled prior to age 60 for as long as you remain totally disabled. This waiver has some specific conditions, so be sure and ask about the full details, and how the option varies by age or depending on the plan you are on.
Waiver of Monthly Deduction for Disability
The Waiver of Monthly Deduction is similar to the Waiver of Premium Rider, except this rider waives the monthly deductions of the entire policy in the event of total disability. It applies to the Joint Life Insurance product.
Accidental Death Rider
The Accidental Death Rider is an option you can add that will allow the death benefit to be paid out as double, and in some cases triple, the amount of the normal death benefit if the cause of death is an accident.
Guaranteed Insurability Rider
The guaranteed insurability rider lets you purchase an additional amount of insurance without a medical exam at specific ages known as “option ages”. The option ages are 17, 22, 25, 28, 31, 34, 37, 40, 43, 46 and 49. You may also take the next available option when you get married or become a parent. This is available for people aged 0 to 37 for coverage levels of $25,000 to $100,000.
This rider provides a nice way to lock in lower rates while you are healthy, and increase coverage at the same rate without a medical exam when your family or personal needs grow. The only catch is that to take this rider, you also have to select the “Waiver Of Premium For Disability Rider.”
Spouse or Children Rider
The option to add your spouse to your coverage as a rider, this can provide additional coverage for less cost than a separate policy.
The children’s rider can cover a child up until age 25, or until you turn 65 (whichever occurs first) for a limit of $5,000 to $20,000. The children’s rider is convertible without an additional medical exam into an individual life insurance policy for the child, valued up to 5 times the amount of the original rider under various conditions at age 18 and 25.
Accelerated Death Benefit Rider
The Flexible Care Benefit rider is a way to get “living benefits” from your life insurance policy if you become critically ill. You can select to accelerate part of the death benefit and get payments on a monthly basis if you are chronically ill and receiving long-term care services. During this period this rider waives your monthly deductions as well.
Customer Service: Local Friendly Agents
State Farm works through local agents who can get to know you and help guide you with your State Farm insurance options. You can reach a local agent easily by phone during normal business hours, or by email.
You can use an agent from State Farm's nationwide network to get fast, friendly, personalized guidance.
Once you select an agent, this agent will become your representative and you will deal with them for all matters regarding your policy. There is no online chat. However, they do offer online policy management, a blog and web resources that are easy to understand. When we tested their “speak to an agent now” phone number, we got connected to a local agent in a few minutes and received friendly and helpful service.
- State Farm Life Insurance Company scores very well on the National Association of Insurance Commissioner’s (NAIC) National Complaint Index report, with a rating of 0.27. This rating has been consistently good for the past 3 years.
Customer Satisfaction: Among the Best
State Farm Life has a consistently strong track record of high scores in the J.D. Power Life Insurance Study, which ranks life insurance companies for customer experience and satisfaction. From 2014 to 2018, State Farm was awarded the top rank. In 2019, State Farm came in second for overall customer satisfaction, just two points below the top-ranked company.
|Overall Satisfaction – Score 808||Among the Best|
|Product Offerings||Among the Best|
|Price||Better than Most|
|Statements||Better than Most|
|Interaction||Among the Best|
|Communication||Among the Best|
|Application and Orientation||About Average|
Financial Strength: Highest Ranking A++(Superior)
State Farm Life Insurance Company and State Farm Life and Accident Assurance Company (together referred to as State Farm Life) have a financial strength rating of A++ (Superior), by AM Best.
State Farm Cancellation Policy
State Farm requests that you contact your agent if you want to cancel your policy, or send a request in writing. Ask about cancellation fees or procedures before you buy to have a good understanding of what to expect, especially if you want to know about cash values or surrendering your life insurance policy.
Price of State Farm Life Insurance
- State Farm Life Insurance ranks as having a price that is “Better Than Most” by J.D. Power.
- State Farm Life provides several payment options, including monthly or yearly on a single pay plan, limited pay options, or premium to 100 options.
State Farm lists some premiums on their website using sample rates for a 25-year-old female in excellent health in Illinois. They suggest getting a quote to get personalized pricing. They do not offer sample quotes for males.
Even though their website offers dynamic quoting tools, don’t expect your premium to directly match the quote.
The Select Term rates state that the premiums will increase annually to age 95, but will never exceed the maximum premium stated in the policy.
Here are their sample rates for $250,000 of coverage:
|Return of Premium/ 20 Years||Starting at $49.59/month; $570.00 annually|
|Return of Premium/ 30 Years||Starting at $51.77/month; $595.00 annually|
|Select Term/10 years||Starting at $15.02/month; $172.50 annually|
|Select Term/20 years||Starting at $15.22/month; $175.00 annually|
|Select Term/30 years||Starting at $19.14/month; $220.00 annually|
We researched prices for comparison using the “good health” criteria and included both male and female sample rates. State Farm Life Sample Insurance Prices below were for 25, 35 and 45-year-old male and female in California, in “good” health, average weight, non-smokers for $250,000 of coverage. Rates were obtained from the State Farm website.
|Age||Term 20 - Male||Term 20- Female||Whole Life- Male||Whole Life- Female|
|25 yrs old||$20.89/mo $240.00/yr||$16.97/mo $195.00/yr||$211.84/mo $2435.00/yr||$190.54/mo $2190.00/yr|
|35 years old||$22.42/mo $257.50/yr||$28.07/mo $322.50/yr||$297.32/mo $3417.50/yr||$259.69/mo $2985.00/yr|
|45 years old||$40.02/mo $460.00/yr||$30.44/mo $350.00/yr||$450.44/mo $5177.50/yr||$365.62/mo $4202.50/yr|
Average expected costs for life insurance, according to LIMRA, are $160 per year for $250,000 term life insurance for a healthy 30-year-old.
How State Farm Stacks Up to the Competition
We wanted to see how State Farm stacked up to the competition when it came to life insurance policies. After reviewing products and offerings from 25 life insurance companies, State Farm Life insurance is tough to compete within the areas of product offering, optional riders or flexibility. They not only offer traditional life insurance options but also are one of the few insurance companies that offer a term life option that has a cash value. They also offer property insurance that may get you discounts for combined policies.
State Farm Life insurance is tough to compete with when it comes to product offerings, optional riders or flexibility.
State Farm Life Insurance is a good company that can offer you a lot of choices when it comes to buying life insurance. They also offer a full range of other insurance options like home and auto, some of which will give you discounts. Their website has a lot of resources, but not a lot of interactivity. You will have to speak to an agent to get most types of policy quotes. Since State Farm works through captive agents, if you want to get a sense of what other insurance companies might offer you, consider shopping around for life insurance options or speak to a financial advisor to help you make a well-informed decision.
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