Are you currently “shopping” for a life insurance policy? Or have you recently been approved for a life insurance policy offered by State Farm Insurance Company and are now just wondering if it’s a good deal?
Well if so…
You should enjoy reading our review article on State Farm Insurance Company and hopefully, it will help answer some questions that you may have about whether or not State Farm Insurance Company is going to be your “best” bet for life insurance.
But before we get going…
We want to first point out two really important things:
- 1st We here at Insurance BrokersUSA believe that State Farm is a great insurance company, which is why we always feel that every individual who is thinking about purchasing a life insurance policy, should be sure to include State Farm in their “top 10 list” of insurance companies to consider.
- 2nd We do not offer any State Farm insurance products nor are we associated with them at all.
Now we say this…
Because here at InsuanceBrokersUSA, we do offer life insurance products from dozens of different life insurance companies.
Which means that..
We’ll often find ourselves in direct competition with State Farm insurance agents.
So please consider this fact as you continue to read our review.
As you read this article, please understand that it is not our intention at all to imply that State Farm Insurance Company isn’t a great insurance company. This is why you’re not going to find us saying anything “negative” about State Farm.
As an “independent” life insurance agency, we here at InsuranceBrokersUSA simply aren’t able to offer any of State Farm Insurance products simultaneously with other life insurance companies. This is why, we don’t actually sell any State Farm Insurance products.
If you continue reading our article, we believe you’ll understand why we “choose” to remain an “independent” insurance agency and why for some clients, having the ability to pick and choose among dozens of different insurance companies can be ENORMOUSLY beneficial!
So, without further ado, let’s dive right into it!
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About State Farm Insurance
History – When looking for the right life insurance provider for your policy, the initial reaction is to choose someone with a strong financial history since they have been through the good and bad times. If they can do this in the past, it suggests they will be comfortable moving forward and this is true for State Farm Life Insurance.
Since being founded in 1922, they have gone from strength to strength and consistently find themselves in conversations discussing State Farm as one of the ‘best life insurance providers’.
Today, they have well over 18,000 agents, 340 claim offices, and even 30 operation centers which certainly gives one a good idea about just how “large” a company they are. In recent years, they even moved into the top 50 of the Fortune 500 list and more customers choose State Farm for all their insurance needs than any other company in the United States. According to recent figures, they now service 80 million people across all their products (including car insurance and various other products as we will see later).
Finances – In 2015, State Farm Insurance Company saw revenues of nearly $76 billion and their total assets increased to a whopping $240 billion. Including agents and all workers in the offices and operation centers, they employ 70,000 people making them one of the largest insurance companies not only in the US but in the world.
State Farm Life Insurance Ratings
State Farm is one of the top 10 highest rated insurance companies in the U.S.
State Farm ratings as of April 2020
- A.M. Best – A++
- SP – AA
- Moodys – Aa1
- Fitch – n/a
- Comdex – 98
- BBB – B
All things considered, these ratings are exactly how you would expect; positive across the board. With this handful of ratings, we can see that they are financially sound with a very good credit rating.
With Fitch, they have provided a UIR (Unrated Issuer Report) which means that they have analyzed State Farm and the key issues but without actually giving a rating-like opinion. If you want to see this report, it can be found online with a simple search and it essentially summarizes that State Farm ‘maintains a leading position in the US market’.
With customer service in mind, the Better Business Bureau has given them a B rating using just over a dozen marking categories and areas of interest. Considering this gives them a score of between 84 and 87 out of 100, and while everyone would love to see an A rating here, a B is certainly strong particularly when considering just how large of a company they actually are.
At this point…
We should point out that you may see quite a few complaints online about State Farm but this is mainly geared towards the auto insurance department, and may not be totally “legitimate” consumer advocate sites.
Which is why…
We would simply have folks look at a report from the National Association of Insurance Commissioners, the life insurance department were State Farm was awarded with five out of five stars whereas the car insurance department only got one.
Now we’d love…
To go into further detail on why State Farm only got one out of five stars for their auto insurance department, but since we don’t sell auto insurance and don’t actually know a thing about the auto insurance industry, we’ll leave that additional research to you.
The last take away…
We would want to mention here in this section is that at the end of the day, State Farm did rank first in the 2016 Life Insurance Study from J.D. Power for customer satisfaction so if all you’re considering purchasing is life insurance, you should be good to go.
With the strong financial foundation underfoot, State Farm has expanded in their product offering over the years and they now boast auto insurance, homeowners insurance, identity theft insurance, business insurance, disability insurance, health insurance, boat insurance, flood insurance, and a whole lot more. As a result, many people have decided to use State Farm for various types of insurance to bring them all under one umbrella.
As well as offering the classic insurance options, they have also kept up with the times by introducing Rideshare Insurance which protects drivers of companies like Lyft and Uber. Currently, this is available in around 25 states but it is quickly becoming more popular. With this innovation, you can be certain that State Farm will be in the market for another 100 years and any potential policy you start will be safe.
So now that we’ve covered a little bit of background information about State Farm Insurance company, let’s now go into a bit more detail regarding their life insurance side of the business and see if State Farm is going to be a good fit for you.
State Farm Life Insurance Policies are offered in all fifty states and have three main options; term, whole, and universal.
Term Life Insurance – Starting with the temporary option for life insurance, this will be available to you as long as you’re between 16-95; this upper age limit is one of the highest you will find across the industry. Furthermore, the duration is relatively flexible with options for 10, 15, 20, and 30 years; the flexibility continues with a potential death benefit of between $100,000 and $3,000,000. Just when you think that’s enough, you can either pay monthly or annually depending on your preference. With the annual option, you won’t pay as much interest which allows you to save money.
Whole Life Insurance – Starting at the age of 25, anyone up to the age of 100 can buy a whole life policy from State Farm with a minimum death benefit of $25,000 and the upper limit set to $3,000,000.
Universal Life Insurance – For the third and final insurance option from State Farm, offers universal policies as well which have a death benefit of between $25,000 and $3,000,000 and can be bought by anyone between the ages of zero and 85.
As you probably know, riders are likely to increase the amount you pay per month but they can keep you protected against certain events like injury or disability. With this in mind, State Farm has a good offering for all products in this regard.
Term Life Insurance – With the temporary insurance, you can add Child Protection, Waiver of Premium, and a Term rider. In addition to this, you can buy a Return of Premium policy which will be significantly more expensive but it will allow you to be refunded every single premium at the end of the policy (if you outlive it). If you fully expect to outlive your policy, a Return of Premium special may be worth it but you should always assess your options in detail.
Whole Life Insurance – With this option, you can choose from Waiver of Premium, Disability, and Guaranteed Insurability.
Universal Life Insurance – Finally, the two universal options can offer Spouse Protection, Child Protection, Guaranteed Insurability, and Disability.
And there you have it…
Now as you can see, State Farm Insurance has a pretty strong portfolio that is backed by an outstanding reputation, and a long history of success. But is it the right life insurance company for you?
They could be, but without knowing more about what you’re looking to “achieve” by purchasing a life insurance policy as well as what “pre-existing conditions” you bring to the table, we really won’t know if State Farm is right for you.
This is because…
When it comes to purchasing a life insurance policy the “type of policy” and “price” that you can qualify for is going to vary significantly based on the underwriting guidelines that each life insurance company chooses to use in their underwriting practices.
Even though State Farm Insurance Company may be the “perfect” life insurance company for some, it may not always be the “best” fit for everyone.
Why you ask?
Well that’s simple, it’s because insurance companies are going to consider a wide range of factors into consideration when determining what “type” of insurance you can qualify for and what price you’ll be expected to pay.
Factors such as your:
- Height and weight,
- Pre-existing medical conditions,
- Current medications,
- Family medical history,
- Driving record,
- Occupation (high risk?)
- Hobbies (are they dangerous?),
- Tobacco use,
- Marijuana use,
- Previous felony or misdemeanor convictions,
So, is State Farm Insurance Company the right life insurance company for you?
They could be, we just won’t know, and neither will you until you compare them to someone else.
But that’s where we step in…
And help our client compare dozens of highly rated life insurance companies against one another so that you can be sure that your getting a great deal on your life insurance policy.
And if it turns out that State Farm is the “best” insurance company for you awesome! You’re all set!
But if they’re not, then let’s help you find that company that is right for you!