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State Farm Life Insurance Review
By Shelby Bennett MONEY RESEARCH COLLECTIVE
According to the National Association of Insurance Commissioners’ 2021 Life Insurance Report, State Farm ranks among the top 10 life insurance companies in market share. It also ranks among our best life insurance companies in the U.S. for customer satisfaction.
Given its popularity and recognizable brand, it may be tempting to choose State Farm for your life insurance needs. Keep in mind, though, that life insurance will greatly impact the financial stability of your beneficiaries after you die, so it pays to do your research.
This review provides a complete guide to determine if State Farm Life Insurance offers the right solution for your needs.
State Farm Life Insurance overview
Since its founding in 1922, State Farm has grown to be one of the largest insurance companies in the country. It recently celebrated 100 years in business and has more than 19,000 agents across all but four U.S. states.
In addition to life insurance, the company also provides many other lines of insurance as well as banking and investment solutions.
State Farm Life Insurance coverage
State Farm’s life insurance policies offer a variety of coverage options, whether you are looking for a permanent policy or one that lasts for just a set number of years. In some cases, you can get guaranteed acceptance, fixed premiums and no medical exam policies. if you’re looking for customization, there are riders available to add coverage to your base policy.
What State Farm Life Insurance offers
State Farm Life Insurance offers the following policy types:
- Term life insurance
- Whole life insurance
- Universal life insurance
There’s an online quoting tool available for term life insurance policies. You can answer a few questions about yourself, your health and policy needs, and the tool will estimate what a policy will cost. From there, you can apply through a State Farm agent.
There’s also a policy lookup tool for beneficiaries to locate unclaimed life policies. The tool is helpful to those who may not have known about their loved one’s policy or had difficulty finding it. The information is only provided to the person named as a beneficiary.
What State Farm Life Insurance doesn’t offer
While State Farm Life Insurance offers comprehensive coverage, it doesn’t provide no-exam life insurance for coverage over $50,000. You’ll need a paramedical exam if you need coverage greater than this amount.
The company doesn’t have an online customer service portal, so customers cannot email or chat with State Farm Life Insurance representatives. Customers can only reach reps by phone. There’s also a State Farm mobile app that provides policy management options.
State Farm Life Insurance doesn’t offer entirely online application systems. Your application may take a little longer, especially if you have to complete it by mail or in person at a local branch.
Types of coverage plan options available
From basic term life insurance to more comprehensive policies, here’s more information about available options.
Select Term Life Insurance
Select Term Life Insurance helps provide financial security for your family following your death. It’s available from State Farm Life and offers coverage for 10, 20 or 30 years. If you die during the selected period of time, it guarantees payment to your beneficiaries.
Instant Answer Term Life Insurance
State Farm Life’s Instant Answer Term Life Insurance plan resembles no-exam life insurance. While it doesn’t require a medical exam, most applicants must answer a health questionnaire. Often, applicants can finish the whole process — application, underwriting and purchasing — on the same day. It offers coverage up to $50,000 and level premiums that remain the same throughout the term.
Return of Premium Term Life Insurance
The Return of Premium Term Life Insurance option reimburses your premiums if you live beyond the initial 20- or 30-year term you’ve selected. With policies available for up to age 95, you’ll have coverage for the long haul. You also have the option to keep your policy in place after the initial term. Return of Premium insurance grows cash value over time, which you can borrow from during your policy period.
Whole Life Insurance
State Farm Whole Life Insurance best serves people looking for a long-term financial security plan. This coverage assures lifetime protection and level premiums, allowing you to budget for the future. It also provides cash value that accumulates tax-free, creating a “living benefit” that you can access in your lifetime.
Unlike term life insurance, which only covers you for a specific period, whole life coverage lasts your entire life. The policy also builds cash value over time that you can use to pay premiums or borrow against when needed.
Universal Life Insurance
While not the cheapest option, State Farm’s universal life insurance may suit those seeking flexible, permanent protection. Not only does a universal life policy from State Farm provide tax-free death benefits for beneficiaries, but it also allows level premiums and adjustable cash values.
Additionally, you can opt for Survivorship or Joint policy options if you want further financial protection. Survivorship Universal Life Insurance covers two people; the death benefit is paid once the last person on the policy dies. Joint Universal Life also covers two people, but the death benefit is paid when the first person dies.
Rider options
State Farm offers various rider options to help customize policies to fit the unique needs of individuals. Some options include the children’s term rider, estate preservation rider, flexible care benefit rider and the guaranteed insurability option. A waiver of premium for disability option allows you to waive your premiums if you become disabled for more than six months in a row, so you don’t have a lapse in coverage.
Additionally, State Farm offers a level term rider to insure your spouse (or another beneficiary) until age 95 and the payor insurance rider to help cover premiums at your death or in the case of a disability.
State Farm Life Insurance accessibility
If you’re contacting State Farm to file a claim, receive technical support or ask a question, you’ll have to call the company directly. State Farm supports relay services like 711 for deaf and hard-of-hearing individuals. You can also visit a State Farm agent in person.
Contact information
Phone numbers
- Life insurance claims: 1-877-292-0398
- General inquiries: 1-800-STATE-FARM (800-782-8332)
Address
State Farm Life Insurance Company
Bloomington Life Operations
Life Claims
P.O. Box 2364
Bloomington, IL 61702-236
Availability
State Farm Life Insurance is available in all states except Rhode Island, Wisconsin, New York and Massachusetts.
Charitable causes
State Farm contributes to numerous charitable causes through its Good Neighbor Grant program. It also offers support services for educators and students. Notably, it gave $2 million to environmental causes in honor of its 100th anniversary. It’s also planning to reduce its greenhouse gas emissions by 50% by 2030.
State Farm Life Insurance customer satisfaction
Evaluating customer feedback helps determine if a company provides good service. We examined customer reviews on reputable third-party websites to understand how customers perceive State Farm Life Insurance.
Third-party ratings
State Farm has high third-party customer satisfaction ratings. With an A++ rating from AM Best and a score of 822 out of 1,000 from J.D. Power, State Farm has established a reputation as one of the most financially stable life insurance companies available. The BBB gives State Farm an A+ rating.
Customer reviews and complaints
Customer feedback is notably different from third-party ratings. As of January 2023, customers on Trustpilot give State Farm 1.8 out of 5 stars based on over 303 customer reviews, though most of these reviews are for State Farm’s auto insurance offerings. Its life insurance still has complaints; customers have expressed frustration with long wait times for policy approval, difficulty getting claims approved and poor customer service.
Consumer Affairs is the only platform that has listed State Farm Life Insurance independently, and it has a 4 out of 5-star rating from 770 customer reviews. Most complaints center around the slow claims process and poor customer service, but some customers have also cited fraud issues or unfair denial of coverage.
State Farm Life Insurance FAQ
How we evaluated State Farm Life Insurance services
To evaluate State Farm Life Insurance services, we reviewed the following factors:
- Life insurance products: We researched the types of life insurance policies and riders State Farm offers, along with the terms and coverage amounts.
- Credentials: We looked into the company’s registrations, licenses, awards and lawsuits.
- Accessibility: We researched customer support channels, physical locations, service areas, how easy it is to get coverage and the user experience online.
- Customer reviews: We researched customer reviews through third-party websites like J.D. Power, Trustpilot and the BBB.
- Competition: We compared the policy types and benefits with comparable companies.
All of this information helped us comprehensively evaluate State Farm Life Insurance’s overall service. We looked at its financial strength rating, customer service ratings and customer reviews to determine its strengths and weaknesses. We also considered the variety of policy options available to customers and the company’s commitment to philanthropy and environmental sustainability.
Summary of our State Farm Life Insurance review
State Farm can be an attractive option for those looking for a life insurance provider with high customer satisfaction and complaint ratings, financial stability and the ability to customize policies.
The company offers a range of term, whole life and universal life policies at competitive rates. While its quoted rates may rank higher than other companies, you can make up for that with dividends. Shop around and compare rates to find the best policy for your needs.