State Farm Life Insurance Company

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State Farm is one of the biggest names in the life insurance industry. Though its policies aren’t always the cheapest, the highly-rated company is second-to-none in customer service.

A.M. Best

A++

BBB

A+

J.D. Power

808

The Good

  • Financial security
  • Exceptional user experience
  • Versatile product lineup
  • Brand recognition
  • Wide range of riders
  • Local agents

The Bad

  • Policy changes require agent
  • Less competitive rates

Product Availability

Policy Types
  • Term
  • Universal
  • Whole
Riders
  • Accelerated death benefit
  • Adjustable premiums
  • Children’s term
  • Guaranteed insurability
  • Level term
  • Long-term care
  • Payor benefit
  • Select term
  • Waiver of premium

Review Breakdown

Overall

4.20

Price/Value

2.8

Financial Strength

3.4

User Experience

5.0

Product Availability

2.5

Brand/Size

4.9

Price/Value

What you pay for life insurance depends on a lot of factors, including the type of policy you apply for, the amount of coverage you need, and ultimately the company you choose.

Each life insurance company will evaluate the level of risk you pose to set your rates, looking at your age, health, your family’s health history, and even your job or high-risk hobbies.

With each provider weighing these factors differently, your rates could be lower with one company than another.

In terms of cost, State Farm does not stand out among the competition, with the average applicant finding higher than average rates.

If you’re young and in excellent health, you may find State Farm’s policies to be reasonably affordable.

However, if you’re a tobacco user, are an older applicant, or have a medical condition, you’re likely to find much more affordable coverage elsewhere.

Financial Strength

It’s equally important to choose a company backed by a strong financial reputation.

State Farm is ranked in the top 50 on the Fortune 500 list, with assets totaling $16.9 billion.

You can also use credit ratings to assess a company’s financial strength.

These ratings use a company’s financial performance and future outlook to determine its ability to meet financial commitments, like honoring your life insurance policy.

A.M. Best gives State Farm an “A++,” which is its highest rating. The company also got high marks from Standard & Poor’s, who issued State Farm an “AA“.

Based on State Farm’s financial performance and credit ratings, you can rest assured you’re partnering with a viable company if you choose to insure your car, home, or even your life with State Farm.

User Experience

In addition to a strong financial performance, State Farm prides itself on providing applicants and policyholders with a superior user experience.

This includes everything from their communication with clients to their website and application.

Ratings

There’s no better place to turn to gauge State Farm’s user experience than ratings informed by the company’s interaction with clients.

Both J.D. Power scores and BBB ratings shed some light on the State Farm user experience:

  • J.D. Power: 5 / 5
  • BBB: A+

J.D. Power ranks State Farm’s user experience “among the best,” based on factors like agent interaction, ease of application process, the website, and products and price.

The Better Business Bureau echoes the findings of the J.D. Power Study, awarding State Farm its highest score based on how the company settles complaints and communicates with clients.

Website

As you might expect based on State Farm’s highly rated user experience, the company’s website is resourceful and easy to navigate.

State Farm breaks down the basics of life insurance and provides the policy details you need to make a decision, clearly laying out policy limits, term ranges, and eligibility.

If you’re looking to calculate your coverage needs or compare quotes, State Farm’s website has you covered.

You can get quick term and whole life quotes on the website after entering a few details about yourself and your coverage needs.

You’ll also find plenty of information on the company’s history, financial performance, and other products.

Though the site doesn’t have a live chat option, you can call customer service or an agent for easy assistance.

Application

State Farm’s application process got a 4 out of 5 from policyholders, signifying it is “better than most.”

If your coverage needs are small. you could be able to apply for an Instant Answer term life policy online, getting up to $50,000 of instant coverage.

Otherwise, you’ll need to work directly with one of State Farm’s many local agents to start the application process.

Once you apply for quotes and define any additional coverage needs online, you can opt to have that information sent to an agent to get things started.

State Farm’s turnaround time for policies is average. Depending on the level of medical underwriting your policy warrants, you could have coverage in place in as little as one week or as many as six.

Product Availability

The next factor you need to consider in your evaluation of State Farm is the selection of life insurance products it offers.

State Farm provides applicants with access to term, universal, and whole life policies.

Let’s take a closer look at what each of those policies has to offer.

Term

Term life insurance provides you with the protection your family depends on for the length of time you need it.

Since you aren’t purchasing coverage for the entirety of your life, term life insurance is far more affordable than other types of policies.

State Farm offers 3 term life products:

  • Select Term Life Insurance: Coverage begins at $100,000, with 10-, 20-, and 30-year terms. Policies can be renewed up to age 95, with premiums increasing after the term is up. Policies can also be converted to permanent life insurance.
  • Return of Premium Term Life Insurance: This policy provides the same protection, renewal terms, and convertibility as Select Term, but comes in 20 and 30-year terms. If you outlive your policy, your premiums are returned to you. Just note this feature makes the policy more expensive.
  • Instant Answer Term Insurance®: Applicants between the ages of 16 and 45 can get a $50,000 death benefit, lasting the longer of 10 years or the policyholder’s 50th birthday. With this no exam policy, you apply for coverage, get an instant decision, and head to an agent’s office to buy your policy.

Universal

If you’re looking for a more permanent solution, State Farm has you covered.

Universal life insurance is the most affordable permanent life insurance product, allowing you to alter the coverage and cost of your policy as your needs change.

The policy includes accessible cash value in addition to the face value of your policy, which accumulates at a guaranteed minimum interest rate.

State Farm’s universal policies start at $25,000 for individuals between the ages of 0-19 and 55-85, and $50,000 for individuals between ages 20-54.

You can also customize your universal coverage with several riders and waivers.

Additionally, State Farm offers joint and survivorship universal policies, which cover not one, but two policyholders.

Whole

In addition to term and universal life insurance, State Farm offers whole life insurance to applicants.

Like universal life insurance, whole life insurance comes with both a death benefit and a growing cash value.

It also provides you level premiums and a guaranteed death benefit effective for your entire life, as long as you faithfully pay your premiums.

State Farm’s whole life policies come with a couple of payment options:

  • Single Premium Life: You can opt for a single payment, where you pay for your policy upfront.
  • Limited Pay Life: With this option, you make payments for a pre-determined number of years, or make payments up to age 100.

State Farm also offers small final expense policies, with a death benefit of $10,000 and guaranteed premiums through age 100.

Brand/Size

The story of State Farm begins almost a century ago, in 1922.

George Mecherle, a former farmer and insurance salesman, combined his professional experiences to form State Farm.

While the company began strictly as an auto insurer, it has since expanded its product lineup to include several other types of insurance.

State Farm is a mutual insurance company, meaning it is owned only by policyholders.

No shares can be bought from any stock exchange because the company isn’t listed. In order to own a piece of the company, you must be a policyholder.

Mutual companies remain strong and focused throughout the ups and downs of the everchanging economy, paying out more than $600 million in dividends to policyholders in 2019.

State Farm insures more automobiles and houses than all the other carriers in the United States, but they’re also a major life insurance underwriter.

The company has 8 million life policies in force, with 83 million policies across all of its insurance niches.

Accolades

In addition to supporting the customers at its core, State Farm is recognized for being an exceptional employer to its 58,000 employees.

The company has been awarded as one of the top military employers by GI Jobs, along with receiving a slew of awards for equality, diversity, and overall workplace quality.

State Farm is also hailed for its community involvement, partnering with organizations to impact local communities through volunteering, donating, and providing annual charitable grants.

Brand Recognition

Like a good neighbor, State Farm is there.

With policies in more households than almost any other provider, the neighborly company provides individuals with multiple lines of insurance.

State Farm is widely popular and recognized for its admiral business practices and volunteerism, but also for its wide-scale marketing.

The brand is highly recognizable, adding to State Farm’s credibility.

Clients can connect with State Farm on Facebook, where the company has over 2 million followers, as well as Instagram and Twitter.

You can catch State Farm’s commercials, along with inspirational stories and educational content on the company’s Youtube account.

Consensus

State Farm is a trustworthy provider with plenty of positive attributes, but you don’t have to take our word for it.

We’ve analyzed numerous online reviews from authoritative financial sites, advisors, and policyholders to gauge the consensus around State Farm.

Experts and customers generally agree that State Farm’s reputation, financial performance, and product selection are commendable.

If you’re looking to carry multiple insurance policies in one place and work with a local agent, State Farm is a great choice, as long as you don’t mind a higher price tag.

On the other hand, if you suffer from any kind of health risks, or you’re looking to secure coverage at the lowest cost possible, State Farm might not be ideal.

Whatever your health status or policy needs, take the time to compare quotes from a handful of providers.

State Farm Life Insurance Company

Phone
(309) 766-2311
Address
1 State Farm Plaza
Bloomington, IL 61710

Company Name (and subsidiaries)

  • State Farm Mutual Automobile Insurance Company
  • State Farm Life Insurance Company
  • State Farm Life and Accident Assurance Company
  • State Farm VP Management Corp.
  • State Farm Bank

Author:

Avatar

Jason Fisher

Jason Fisher is the founder and CEO of BestLifeRates.org, LLC. and a multi-state licensed life insurance agent who has helped over a million Americans seek out affordable coverage, compare quotes, or get their family and businesses covered.