State Farm Life Insurance Overview
State Farm is a well-established insurance provider offering term, whole, and universal life insurance policies. It’s known for its excellent customer service, ranking first in JD Power’s 2023 survey of 22 life insurance companies for customer satisfaction.
Key Features
- Offers term, whole, and universal life insurance
- Customizable policies with various riders available
- Strong financial strength rating (A++ from AM Best)
- Bundling discounts available for existing State Farm customers
Pros and Cons
Pros
- High customer satisfaction ratings
- Customizable policies for families and individuals
- Competitive premiums for term life insurance
- Whole life policies eligible for dividends
Cons
- Limited options for no-medical-exam policies
- Whole life dividends lag behind some competitors
- Some policy types have limited benefits or higher premiums for certain age groups
Policy Options
State Farm offers various life insurance products, including:
-
Term Life Insurance
- Select Term: 10, 20, or 30-year terms
- Return of Premium Term: Returns premiums if you outlive the policy
- Instant Answer Term: No-medical-exam term life insurance (up to $50,000 coverage)
-
Whole Life Insurance
- Traditional Whole Life: Lifetime coverage with cash value accumulation
- Limited Pay Whole Life: Premiums paid over 10, 15, or 20 years
- Single Premium Whole Life: One-time premium payment
- Guaranteed Issue Final Expense: For seniors aged 45-80 (not available in New York)
-
Universal Life Insurance
- Universal Life: Flexible premiums and cash value growth
- Survivorship Universal Life: Benefits paid after the second spouse dies
- Joint Universal Life: Covers both spouses, pays out after the first spouse’s death
Riders and Additional Coverage
State Farm offers various riders to customize policies, including:
- Children’s Term Rider
- Guaranteed Insurability Option
- Waiver of Premium for Disabilities Rider
- Accidental Death Rider
- Flexible Care Benefits for long-term care expenses
Cost and Alternatives
State Farm’s term life insurance premiums are competitive, staying below average costs for similar policies. However, for those seeking more no-medical-exam options or higher coverage limits, alternatives like Ladder Life Insurance may be more suitable. MassMutual offers more comprehensive whole life insurance options with higher dividend payouts.
Customer Reviews and Ratings
While State Farm has excellent industry ratings, customer reviews on third-party sites are generally negative, with complaints about claims processing and customer service. However, State Farm scored 0.33 on the National Association of Insurance Commissioners’ complaint index, indicating fewer complaints than expected.
Conclusion
State Farm Life Insurance is a solid choice for those seeking customizable life insurance policies with strong customer service. While it may not offer the most competitive no-medical-exam policies or the highest whole life dividends, its overall package and financial strength make it a viable option for many families and individuals.
