State Farm Life Insurance Review 2024
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State Farm
on Nerdwallet
Financial strength rating
Online purchase
NAIC complaints
Policies offered
on Nerdwallet
State Farm
Financial strength rating
Online purchase
NAIC complaints
Policies offered
Started in 1922 by an Illinois farmer, State Farm is perhaps best known for its home and auto insurance. But the company also sells a broad range of life insurance products, primarily through local agents. Although its reach is wide, the company doesn't issue new life insurance policies in Massachusetts.
» MORE: Compare life insurance quotes
State Farm life insurance rating
State Farm life insurance earned 5 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, complaint data from the National Association of Insurance Commissioners and financial strength ratings.
Based on these ratings, State Farm is among NerdWallet’s best life insurance companies.
State Farm life insurance policies
State Farm sells term life, whole life and universal life insurance policies to individuals. All of State Farm’s term products can be converted to permanent coverage, regardless of changes to your health. Availability and policy details vary among states.
Term life insurance. Available options include:
Select Term Life. Policies are available in 10-, 20- or 30-year terms, depending on your age, and renewable up to 95. Coverage amounts start at $100,000.
Instant Answer Term Life. $50,000 of coverage is available for people between 16 and 45, lasting until age 50 or 10 years after the policy is issued, whichever is later. State Farm’s instant answer life insurance doesn’t require a medical exam. However, you have to complete a health questionnaire, and your answers may disqualify you from coverage.
Return of Premium Term Life. Coverage starts at $100,000 and is available in 20- or 30-year terms, though you can renew the policy at increased rates. If you pay premiums faithfully, outlive your term and don’t renew, you’ll get your money back.
Whole life insurance. Policies include standard whole life, limited-pay whole life, single-premium whole life and final expense. The company’s standard whole life policy has level premiums. Its limited-pay and single-premium policies allow you to front-load the cost of the insurance so you don't need to pay during retirement. Final expense policies are available to applicants 50 to 80 years old (50 to 75 in New York). You can buy $10,000 to $15,000 in coverage.
Universal life insurance. Options include survivorship and joint universal policies. These types of policies cover two individuals, typically spouses. The company’s standard universal policy offers flexible coverage and payment options.
» MORE: Compare life insurance quotes
State Farm life insurance rates
Below are monthly rates for a 20-year, $500,000 term life insurance policy from State Farm. These are sample rates for a nonsmoking man and woman in excellent health — the final quote you’re offered will depend on factors like your age, health, lifestyle, occupation and driving record.
Age | Monthly rate - man | Monthly rate - woman |
|---|---|---|
20 | $29.14 | $23.49 |
30 | $31.74 | $25.69 |
40 | $46.99 | $37.84 |
50 | $106.59 | $78.29 |
60 | $294.49 | $202.69 |
Source: Insurer's site. Rates reflect the super preferred class and were generated on 10/23/2024. | ||
State Farm customer complaints and satisfaction
Over three years, State Farm has drawn fewer complaints to state regulators than expected for a company of its size, according to a NerdWallet analysis of data from the National Association of Insurance Commissioners.
State Farm ranked first out of 22 companies in J.D. Power's 2023 U.S. Life Insurance Study for overall customer satisfaction.
What Reddit users say about State Farm
Reddit is an online forum where users share their thoughts in “threads” on various topics. The popular site includes plenty of discussion on financial subjects like life insurance, so we sifted through Reddit forums to get a pulse check on how users feel about insurers. People post anonymously, so we cannot confirm their individual experiences or circumstances.
Comments on Reddit about State Farm life insurance are mixed. Some Redditors believe State Farm’s life insurance rates tend to be too high, though others said they were reasonable. And while some commenters praise the company for quickly paying out death benefits, others complain about agents trying to upsell additional policies that may not be necessary.
Questions from Reddit: Our experts answer
Are State Farm’s return-of-premium life insurance policies worth it?
With a return-of-premium life insurance policy, you’ll get a refund of the money you paid for your policy if you’re still alive at the end of the term. But you’ll pay a price — this type of insurance tends to be significantly more expensive than a regular term policy.
Can I get State Farm life insurance if I have a mental health condition?
Life insurance companies won’t necessarily refuse to cover you if you have a mental health condition. However, you could end up paying more or even being declined if your condition is serious or not well managed. Not all carriers view mental illnesses the same way, so it’s smart to shop around. A life insurance agent or broker can help you navigate your options.
Where State Farm stands out
State Farm has ranked #1 in J.D. Power’s annual study on customer satisfaction in the life insurance industry for the past four years (2020 to 2023). The study looks at insurers’ performance in these five areas: communication, interaction, pricing, product offerings and statements. State Farm’s track record points to a positive reputation, and customers should expect a personalized experience when working with the company.
Where State Farm falls short
While State Farm operates nationwide, it doesn’t offer life insurance to residents of Massachusetts. Its Android app also has fewer features than the app for iOS users.
More about State Farm life insurance
You can search for a local State Farm agent on the company’s website and get a quote for certain term products online.
The online portal allows you to view your policy, pay premiums and see lab results. However, it doesn’t support document downloads for Android smartphones.
Other insurance products from State Farm include:
Farm and ranch insurance.
Health insurance.
Boat insurance.
Life insurance buying guide
Before you start comparing companies, choose the type of life insurance you want, such as term or whole life. Decide which life insurance riders, if any, you want the policy to include. Calculate how much life insurance you need and how long you want the coverage to last. Check that the insurers you’re considering offer the coverage you’re looking for.
When comparing rates, be sure the quotes are for the same amount of coverage over the same period of time. It’s also important to make sure the policy’s medical requirements match your needs. For example, if you want to skip the life insurance medical exam but don’t mind answering health questions, confirm that the application process for each policy you're comparing aligns with that.
Price may not be the biggest driver behind your decision to buy. Look at the number of consumer complaints each company receives, as high numbers can be a red flag about the quality of service.
For more guidance, see our life insurance buying guide.
Methodology
Life insurance ratings methodology
NerdWallet’s life insurance ratings are based on consumer experience, complaint index scores from the National Association of Insurance Commissioners for individual life insurance, and weighted averages of financial strength ratings, which indicate a company’s ability to pay future claims. Within the consumer experience category, we consider ease of communication and website transparency, which looks at the depth of policy details available online. To calculate each insurer’s rating, we adjusted the scores to a curved 5-point scale.
These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2020-2022. To assess how insurers compare with one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.
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