In the market today, few companies can say they play such a significant role in insuring America as State Farm. With policies in more households than almost any other, State Farm has a strong allegiance to individuals for multiple lines of insurance to give them simplicity and peace of mind.
But with such a big brand and massive marketing arsenal, are you really getting what you pay for? See below why we don’t think State Farm is your best choice for life insurance, though it may still be a lucrative option for you if you like to have a single household insurer.
This review of State Farm Life Insurance Company is our own, and should be but a supplement to your own research before purchasing any kind of life insurance policy.
Our State Farm Life Insurance Company Review for 2017
The story of State Farm begins almost a century ago in 1922. George Mecherle, a former farmer and insurance sales person, began the company combining his experience and expertise in both industries. He began the company as offering insurance policies on for vehicles, but the company has since expanded its product line to several other insurance niches.
State Farm is a mutual insurance company, meaning it is owned only by policyholders, and no shares can be bought from any stock exchange because it isn’t listed. In order to own your piece of the company, you must do business with the company. While this model is rare among insurers, it has helped those who chose this format to remain strong and focused where others couldn’t during bad economic times.
State Farm: By the Numbers
State Farm is very much a household name insuring more automobiles and houses than all the other carriers in the United States. Ranked in to the top 50 on the Fortune 500 list, its size and reputation make it one of the 10 best life insurance companies in 2016 in the U.S. with 18,000 agents in all the major cities across the nation.
State Farm is highly recognized with many different prestigious awards from nearly 100 years in business, including “Top Employer For Military Veterans,” “Most Admired Company” by Forbes for its industry, several awards for fair employment for women and diverse cultures, and much recognition for its pro-activity in saving energy.
The company also specializes in insurance products for:
- long term care
- and more…
It’s main products under the life insurance umbrella are for term, whole, and universal products to suit the many changing needs of the American family. Condo and renters insurance is also available.
State Farm is also active for the purposes of banking, investing for things like education and retirement, and financial planning for both families and small businesses. While it does not play a major role in employee benefits, all products typically available through your workplace are available under one roof at State Farm.
State Farm also prides itself on direct contact from local agents and their assistants. With the ability for agents to potentially open their own offices, the State Farm brand has become a nationally recognized name from small towns to large cities. Also be on the lookout for any savings State Farm offers through bundling policies, something most insurance companies don’t have the capacity to do because they don’t offer so many lines of insurance.
State Farm, in addition to its brand recognition in every major and small city around the U.S., is one of the more aggressive insurers when it comes to marketing. With one of the stronger presences in both print and television, State Farm has made it a point to make sure everyone knows their name and what they represent.
Our Thoughts On State Farm
If you have any kind of health risks, State Farm is not for you. They are not generous for those who aren’t in great shape, and, quite honestly, even if you are, you’ll still over pay.
For basic term life, you’ll be better to consider companies like Sagicor, Banner, Protective, Assurity, and others. For permanent, you’ll see great returns with the same level of guarantee by purchasing products from the major mutuals, like New York Life, Northwestern, or Mutual of Omaha.
However, if you’re all about carrying all your insurances in one place, State Farm is a fine bet, if you don’t mind a higher price tag. For some, this is worth the price of admission. Just know the idea of bundling won’t help you on your life insurance portion.
|Company Name (and Subsidiaries)||State Farm
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
|Company Ratings||A.M. Best (A++)
Moody’s Investors Services (Aa1)
Standard &Poor’s (AA)
|Headquarters (Address, Phone, Web)||1 State Farm Plaza
Bloomington, IL 61710
Phone: (309) 766-2311
|Policy Types Available||Term