Are you currently shopping for a life insurance policy, or have you recently been approved for one offered by State Farm Insurance Company and are now wondering if it’s a good deal? If so, you may find our review article on State Farm Insurance Company helpful in answering some of your questions and determining if it is the best option for you.
Before we get started, we want to emphasize two important things:
- Firstly, we at Insurance BrokersUSA believe that State Farm is an excellent insurance company, which is why we recommend that every individual considering purchasing a life insurance policy should include State Farm in their top 10 list of insurance companies to consider.
- Secondly, we do not offer any State Farm insurance products nor are we associated with them in any way.
It is important to note that at InsuranceBrokersUSA, we offer life insurance products from dozens of different life insurance companies. This means that we often find ourselves in direct competition with State Farm insurance agents. Please keep this in mind as you read our review.
Additionally, we would like to make it clear that our intention is not to imply that State Farm Insurance Company is not a great insurance company. You will not find us saying anything negative about State Farm in this article.
However, as an independent life insurance agency, we are not able to offer any of State Farm’s insurance products simultaneously with other life insurance companies. This is why we do not sell any State Farm Insurance products.
If you continue reading our article, we believe you will understand why we choose to remain an independent insurance agency and why having the ability to pick and choose among dozens of different insurance companies can be enormously beneficial for some clients.
Without further ado, let’s dive right into it!
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About State Farm Insurance
When searching for the right life insurance provider for your policy, it’s natural to look for a company with a strong financial history that has weathered both good and bad times. State Farm Life Insurance is a prime example of this.
Founded in 1922, State Farm has consistently grown and improved, earning a reputation as one of the best life insurance providers. Today, with over 18,000 agents, 340 claim offices, and 30 operation centers, State Farm is one of the largest insurance companies in the United States. They even ranked in the top 50 of the Fortune 500 list in recent years. More customers choose State Farm for all their insurance needs than any other company in the US, with 80 million people now serviced across all their products, including car insurance and other offerings.
In terms of finances, State Farm Insurance Company had revenues of nearly $76 billion in 2015, and their total assets increased to an impressive $240 billion. With 70,000 employees, including agents and office and operation center workers, State Farm is one of the largest insurance companies in both the US and 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
When looking for the right life insurance provider, the initial reaction is to choose a company with a strong financial history, since they have been through good and bad times. State Farm Life Insurance has been consistently mentioned as one of the “best life insurance providers” since its foundation in 1922. They have grown in strength, and today they have more than 18,000 agents, 340 claim offices, and 30 operation centers. In recent years, they even moved into the top 50 of the Fortune 500 list. More customers choose State Farm for all their insurance needs than any other company in the United States, and they now serve 80 million people across all their products, including car insurance and various other products.
In 2015, State Farm Insurance Company’s revenues were nearly $76 billion, and their total assets increased to $240 billion. They employ 70,000 people, making them one of the largest insurance companies in the world.
State Farm has been rated positively across the board, indicating that they are financially sound with a very good credit rating. Fitch provided an Unrated Issuer Report (UIR), which analyzed State Farm’s key issues without giving a rating-like opinion. The Better Business Bureau gave them a B rating, which is strong, considering the large size of the company. The National Association of Insurance Commissioners awarded State Farm’s life insurance department five out of five stars, whereas the car insurance department only received one star.
Regarding complaints, people can find many online about State Farm. However, most of them are geared towards the auto insurance department, and some may not be entirely legitimate consumer advocate sites. The reason why State Farm only received one out of five stars for their auto insurance department is unknown, and additional research is required.
State Farm has expanded its product offerings over the years and now offers various types of insurance, including auto, home, identity theft, business, disability, health, boat, and flood insurance. They have also introduced Rideshare Insurance, which protects drivers of companies like Lyft and Uber. It is available in around 25 states and is becoming more popular. With this innovation, customers can be confident that State Farm will continue to offer insurance policies for many years to come.
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.
To begin with, State Farm offers Life Insurance Policies in all fifty states and has 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,
While State Farm Life Insurance policies may seem like a great option based on their strong financial history, positive customer service ratings, and diverse product offerings, it’s important to remember that every individual’s life insurance needs are unique. While State Farm may be a good fit for some, it’s always recommended to shop around and compare policies and rates from different providers to find the best fit for your specific situation. Only by doing your due diligence and researching different options can you be sure that you’re getting the best coverage for the best price.
It’s also worth noting that factors such as your age, health, and lifestyle may impact the availability and cost of life insurance coverage, so it’s important to work with a licensed insurance agent to fully understand your options and make an informed decision.