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State Farm disability insurance review 2020

Last updated:  

This carrier offers short- and long-term policies, plus a unique product: individual credit disability insurance.

  • Consider State Farm if…You want a generous policy, or to protect your credit score with individual credit disability insurance.
  • Look elsewhere if…You live in Massachusetts, New Jersey or Rhode Island, or if you reside in New York and want individual credit disability insurance.

18 to 75

Issue Age

$100,000 to $3,000,000

Coverage

Depends on policy

Medical Exam Required

Details

Individual credit
Benefit periodShort term: 1 or 3 years
Long term: 5 years, 10 years, or to age 65 or 67
Individual credit: None
Waiting periodShort term: 30, 60 or 90 days
Long term: 30, 60, 90 or 180 days
Individual credit: None

Expert review

Katia Iervasi

Review by


Katia Iervasi is a writer from Sydney, Australia. Her writing — and curiosity — has taken her around the world, and she now calls New York home. With a journalistic eye for detail, she navigates insurance and finance for Finder, so you can splash your cash smartly (and be a pro when the subject pops up at dinner parties).

Expert review

State Farm sets itself apart from its competitors by offering individual credit disability insurance, which helps to keep your credit score in tact if you become disabled. Its short- and long-term policies are generous and customizable, too. But if you want coverage, you’ll need to pick up the phone.

To learn how State Farm stacks up to its competitors, compare disability insurance companies.

What’s individual credit disability insurance?

It’s a type of disability insurance policy that’s designed to protect your credit score. If you become disabled and cannot work, it pays your creditors so you can keep up with your loan repayments.

Built-in benefits and available policy riders

Built-in benefits

  • Waiver of premium. Pauses your premiums while you receive disability benefits.
  • Residual disability. Pays a partial benefit if you’re able to work part-time but lose 20% or more of your income. During the first six months of residual disability, State Farm pays a minimum of 50% of the total disability. If your loss of earning exceeds 75%, the insurer will pay the full benefit amount.
  • Rehabilitation expenses. Covers part or all of the costs of an approved vocational rehab program while you’re totally disabled.
  • Additional purchase option. Allows coverage add-ons on the fifth anniversary of your policy — without having to go through the full application process.
  • Cost of living adjustment (COLA). Increases your monthly disability payments each year in response to inflation.

Riders

  • Social insurance supplement (SIS) rider. Pays an additional benefit that’s reduced proportionally once the SIS benefit is approved.
  • Regular occupation extension rider. Extends the claim qualification to include other jobs besides your occupation.

State Farm disability insurance reviews and complaints

State Farm isn’t accredited with the Better Business Bureau, but it has an A+ rating for customer service and interaction. The BBB records 1,382 complaints over the past three years, and customers award State Farm 1 out of 5 stars. But these complaints and reviews reflect the company as a whole, and not just its disability insurance department.

It’s a similar story on TrustPilot. State Farm has 2 out of 5 stars, with many customers complaining about the claims process and staff members’ lack of empathy. However, most of the reviews centered on auto insurance.

State Farm’s financial strength

Your insurance company’s financial strength is crucial because you might not make a claim for years to come. State Farm scores the highest possible rating from AM Best and Standard & Poor’s, and reported $673 million in income in 2019. This means it has the financial resources to pay out claims in the foreseeable future.

As for customer satisfaction, the insurer topped the list of companies surveyed in J.D. Power’s latest life insurance study.

AgencyRating
AM BestAA++ (Superior)
Moody’sN/A
Standard & Poor’sAA (Very strong)
FitchN/A
J.D. Power5 out of 5 circles

Compare alternatives to State Farm

Updated April 9th, 2020
Name Product Waiting period Benefit period
Policygenius Disability Insurance
60 - 365 days
2, 5, or 10 years or until age 65 or 67
Get matched with one of 15 top life insurance companies to find the best coverage and rates for you.
Breeze
30 - 365 days
1, 2, 5, or 10 years or until age 65 or 67
This startup offers some of the most riders and benefits backed by an established underwriter.
LeverageRx
30 - 365 days
1, 2, 5, or 10 years or until age 65 or 67
LeverageRx is a digital lending and insurance marketplace exclusively for medical professionals.
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Compare up to 4 providers

How do I sign up for State Farm disability insurance?

Sign up for disability insurance by speaking with a local agent.

  1. On State Farm’s homepage, click Find an Agent.
  2. Type in your ZIP code.
  3. Adjust the distance and select your preferred language.

The system will generate a list of local agents and their contact details.

More about State Farm

Founded in 1922, State Farm originally focused on selling auto insurance to farmers. Over the years, the mutually owned insurer expanded to offer a full suite of insurance products. The Fortune 500 company has a network of 19,000 agents across the country and more than 83 million policies in force.

State Farm is committed to giving back to the community by offering auto and home safety programs and natural disaster recovery services. It also provides education grants through its Good Neighbor Citizenship Company Grants program.

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