State Farm Life Insurance Review
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A life insurance policy is a financial product that offers great financial protection that you hope you never have to use. If an individual passes away with an active policy, that person’s heirs will receive a death benefit. The total financial compensation depends on the amount covered in the policy.
Life insurance policies can help families recover from the loss of a spouse. They can minimize financial stress and offer the flexibility to focus on the grieving and recovery process. These policies are especially useful for families with young kids. Knowing there is an extra layer of financial protection for the worst-case scenario reduces the risk of financial ruin if a household goes from two incomes to one income because of a spouse passing away. Our State Farm life insurance review will help you understand the ins and outs of the policy.
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What is State Farm Life Insurance?
A State Farm Life Insurance policy offers your beneficiaries financial protection if you pass away. Consumers can choose from term life, State Farm whole life insurance, and universal life insurance products through the insurer.
State Farm Life Insurance Company has been a reputable insurance provider since 1922. The company was founded in Bloomington, Illinois, and initially served farmers, but now offers auto insurance, homeowners insurance, life insurance, pet insurance, renters insurance, health insurance, and business insurance. State Farm continues to help farmers but has expanded to help consumers and businesses.
How does State Farm Life Insurance work?
You can select three types of policies and adjust the coverage you want. The process starts on the State Farm website, where you must select the state where you live. Once you provide this detail, you can get a quote for life insurance coverage.
State Farm is not licensed in New York, Massachusetts, or Wisconsin. The State Farm Life and Accidental Assurance Company is licensed in New York and Wisconsin. State Farm offers a useful chart explaining the differences between permanent and term life insurance policies. This distinction can help you make the optimal choice for your insurance needs.
It only takes a few minutes to receive a quote from State Farm. You can opt for lower premiums with a term life insurance policy or know that a benefit will arrive if you opt for a permanent policy. You can request a policy change at any time. If you have to file a claim, you can either call State Farm or contact the insurer online.
How much does State Farm Life Insurance cost?
The monthly cost of a State Farm Life Insurance policy depends on several factors, such as your state, age, and gender. State Farm has coverage amounts starting at $100,000 with flexible coverage for 10, 20, and 30 years. You can own a State Farm Life Insurance policy alongside other policies.
I ran a test to see what premiums a 30-year-old male in Maine would receive. I filtered the search results to a 6’ 0’’ individual weighing 140 pounds with great health. These are the expenses that came up.
- $500,000 coverage amount for 10 years — $24.34/mo or $280/yr
- $500,000 coverage amount for 20 years — $28.29/mo or $325.00/yr
- $500,000 coverage amount for 30 years — $43.09/mo or $495.00/yr
- $1,000,000 coverage amount for 10 years — $33.89/mo or $390.00/yr
- $1,000,000 coverage amount for 20 years — $41.79/mo or $480.00/yr
- $1,000,000 coverage amount for 30 years — $69.59/mo or $800.00/yr
You can select coverage amounts of $100,000, $250,000, $500,000, $750,000, and $1 million. State Farm also lets you select a custom coverage amount if you want a different amount of protection. Term length options are 10, 20, and 30 years.
You can also add additional coverages such as a Disability Waiver, Child coverage, and coverage for an additional adult. The actual premium can be slightly higher or lower than the quoted premium.
State Farm will obtain additional information during the underwriting process and will then offer an actual premium. Once you verify the quote, you will have to fill in your contact information. An insurance agent will reach out to you shortly after.
Protect Your Family's Future with Bestow
- Secure up to $1,000,000 in life insurance for your family
- Apply with a 60-second online questionnaire
- Policies start at $11 per month
- No medical test needed, no waiting, no hassles
State Farm Life Insurance features
Flexible term lengths
Choose from 10-year, 20-year, and 30-year term life insurance policies. This flexibility offered through policy options can help you secure the right amount of coverage and adjust premiums based on how many years you choose for your policy. Shorter policies have lower monthly premiums since you are younger when the policy expires.
Coverage amount starting at $100,000
State Farm coverage starts at $100,000 for your life insurance policy. You can also go to $1 million if you want extra protection and can afford the higher premiums.
Insurance riders
You can add a Disability Waiver, Children’s term rider, and coverage for an extra adult on your policy. These add-ons will increase your monthly premiums but offer extra protection if needed.
Quick quoting process
Consumers can get life insurance quotes in a few minutes. It’s straightforward and will give them an idea of their premium payments. After the underwriting process, you will receive an official price.
Whole life insurance
State Farm doesn’t only offer term life insurance but offers two types of life insurance. The company’s whole life insurance policies offer more stability but come with higher premiums. Some policyholders can receive dividends on their whole life insurance policies. These dividends can reduce the premium, accumulate as interest, or cover additional insurance policies.
Universal life insurance
State Farm has several universal life insurance policies that cater to your needs. If you don’t find the right whole-life or term life insurance policy, you may find a solid financial product in this category.
Who is State Farm Life Insurance best for?
People who can afford the premiums
If you cannot afford the premiums, the insurance policy will lapse. You should only select a coverage amount that you can afford instead of risking falling behind on payments.
Families with young children
If the surviving spouse receives a financial windfall, raising the children and giving them a good future can be easier than stressing about money and a lost spouse. Money won’t bring someone back, but it can alleviate some of the stress and offer a path forward.
Younger individual
Younger individuals have lower insurance premiums since they are healthier and less risky for insurers. Getting an insurance policy later in life is possible, but you will have to contend with higher premiums.
Who shouldn’t use State Farm Life Insurance?
People who cannot afford the premiums
An insurance policy is designed to offer an extra blanket of financial protection for the worst-case scenario. However, if an insurance policy strains your current finances, keeping up with emergency expenses and various living costs can be more difficult. It may not be worth squeezing your budget for a scenario that may not happen.
Families with grown-up children
If your children have grown up and are making money independently, a life insurance policy isn’t as valuable. While it can still provide a windfall for your heirs, they can stand on their own from a financial perspective. If your children have all left the house, it also means you’re older and will have higher insurance premiums.
Pros and cons
Pros
- Flexible term lengths
- Coverage can reach $1 million
- Several add-ons are available
- Choose from whole life, term life, and universal life insurance
- Quick quote process
- J.D. Power ranks State Farm at the top for customer satisfaction. Its financial strength rating is A+ with AM Best.
Cons
- Insurance is an extra monthly expense
- You normally cannot exceed $1 million worth of coverage but can contact an agent to see if they will make an exception
- You must talk with a State Farm agent to get a policy
Protect Your Family's Future with Bestow
- Secure up to $1,000,000 in life insurance for your family
- Apply with a 60-second online questionnaire
- Policies start at $11 per month
- No medical test needed, no waiting, no hassles
State Farm Life Insurance vs. competitors
A State Farm Life Insurance policy offers extra financial protection if something happens. However, State Farm isn’t the only insurer available. Comparing life insurance companies can help you find a product that offers reasonable premiums with good coverage. Here’s how State Farm compares with some of the best life insurance companies in the market.
Minimum Coverage | Maximum Coverage | Term Life Insurance Range | |
State Farm Insurance | $100,000 | $1 million | 10, 20, and 30 years |
Nationwide | $100,000 | $1.5 million | 10, 15, 20 and 30 years |
Prudential | $100,000 | $65 million | 10, 15, 20, and 30 years |
Aflac | $10,000 | $250,000 ($100,000 maximum if you are 50 years or older) | 10, 20, and 30 years |
Nationwide
Nationwide has been offering insurance policies since 1926. The insurer has flexible life insurance policies and offers no-exam policies. However, you will pay a higher premium if you do not complete a medical exam. Most policies are 10, 15, 20, or 30 years old, but Nationwide makes some exceptions based on an applicant’s age. You will have to contact an agent to get a Nationwide Guaranteed Level Term. Applicants can receive Nationwide Life Essentials online quotes and policies without calling an agent. This policy is available in every state except New York. The Nationwide Guaranteed Level Term is available in all 50 states.
Prudential
Prudential is one of the oldest insurance giants, founded in 1848. The firm has been around for over 175 years and is rooted in Newark, New Jersey. The company offers several life insurance options, such as term life insurance, universal life insurance, indexed and variable universal life insurance, and whole life insurance.
Policyholders can receive up to $65 million in coverage. Most policies are good for people 18-60 years old, and some life insurance policies extend to people 18-85 years old. You can do some of the applications independently, but other Prudential products require a financial advisor to submit a digital or paper application for you.
Aflac
Aflac is one of the life insurance providers that offers the lowest minimum coverage and low life insurance rates, which makes insurance policies more affordable. However, the company also offers the lowest maximums, especially if you are 50 years or older. Aflac can help people with tight budgets, but it isn’t the best choice if you can cover the monthly premiums for a pocket with a high coverage amount.
Aflac has been offering insurance policies since 1955. The company, which has its roots in Columbus, Georgia, has 16 employees and 60 agents. Aflac stands for the American Family Life Insurance Company of Columbus.
FAQs
Is State Farm a reputable insurance company?
State Farm is a reputable insurance company that has been around for over 100 years. The company has survived various economic cycles while paying claims.
Should I get term life or whole life insurance?
A term life insurance policy is better for short-term needs and lower premiums. A whole life insurance policy is optimal for people who can afford higher premiums and want the assurance that the policy will never expire. You should look at your budget and assess how much you can afford before choosing the best term life insurance or whole life insurance policy.
Do you have to repay loans on life insurance?
You don’t have to repay loans on your life insurance policy if you borrow against it. However, the loan will accrue interest and reduce the death benefit. Paying it off early can leave more money for your heirs if they file an insurance claim.
Can you cash out on life insurance before death?
It’s possible to cash out on a whole life insurance policy that has build cash value before you pass. However, the money you take out of your policy will reduce the death benefit.
Is it smart to borrow against your life insurance?
Borrowing against your life insurance can be a smart move. You’ll get a low rate and won’t have to go through a credit check. You don’t even have to pay it right away. However, borrowing against your policy will reduce the death benefit unless you pay back the loan during your lifetime.
Protect Your Family's Future with Bestow
- Secure up to $1,000,000 in life insurance for your family
- Apply with a 60-second online questionnaire
- Policies start at $11 per month
- No medical test needed, no waiting, no hassles
The bottom line
A State Farm Life Insurance policy offers extra financial protection and can help your loved ones maintain their way of life if something happens to you. You never want your loved ones to file a claim for your life insurance policy when you are young, but it’s good to have it just in case.
Life insurance policies will add an extra monthly expense to your budget. Make sure you only get a policy that you can afford. If the premiums strain your budget, you may want to consider less coverage or working on a side hustle to make extra income.
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Writer
Marc Guberti is a business freelance writer who specializes in personal finance, digital marketing, and entrepreneurship. His award-winning book "Content Marketing Secrets" teaches readers how to create, promote and optimize content for growth and revenue. Marc also hosts the "Breakthrough Success Podcast," where listeners learn how to master content marketing and get more clients.
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