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State Farm life insurance review 2020

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This insurer ranked #1 for customer satisfaction four years in a row.

finder.com's rating: 4 / 5

★★★★★

  • Get a quote if… you want great 24/7 customer service.
  • Choose a different… provider if you have a pre-existing condition or are in poor health.

18 to 75

Issue Age

$100,000 to $3,000,000

Coverage

Depends on policy

Medical Exam Required

Details

Free quote Online
Policy options Term, Whole, Universal, Variable
Term lengths 10, 20, and 30 years
Monthly cost Not listed
Claim methods Phone, Online.
Available states Not available in MA, NY or WI
Customer support Phone, Online
Riders Accelerated death benefit rider, Accidental death benefit rider, Child rider, Critical illness benefit rider, Disability income benefit rider, Estate protection rider, Guaranteed insurability rider, Level term rider, Waiver-of-premium rider

Expert review

Julia Cameron

Review by


Julia Cameron is a writer and editor who has experience in finance, mergers and acquisitions, content marketing and immigration law. She has a passion for interior design and an affinity for Old Florida, where she lives with her family.

Expert review

If you’re very healthy and live an active lifestyle, State Farm might be perfect for your needs. The company values its customers and offers unbeatable customer service and overall satisfaction. However, if you have any pre-existing conditions or want a more affordable option, you should consider looking elsewhere.

Best of 2020
Finder experts pick State Farm as a 2020 best brand for life insurance.

What types of life insurance coverage does State Farm offer?

Despite its massive size and extensive network of agents, State Farm keeps it simple with three types of life insurance. Term, whole and universal life insurance policies are available with additional riders and flexible options to get you the coverage you need. Here’s what coverage you can expect from State Farm life insurance:

Term life insurance is State Farm’s most affordable and straightforward type of policy. These plans offer a predetermined amount of coverage for a set period of time, along with monthly payments that don’t change for the life of your policy. Policy coverage is available in 10-, 15-, 20- and 30-year terms and provides a guaranteed benefit payout starting at $50,000. After your policy expires, either pay more for your current term coverage or convert to a permanent policy. Here are the various term life insurance policies that State Farm offers:

  • Select term life insurance. Level premiums and a guaranteed death benefit.
  • Return-of-premium term life insurance. Returned premiums if you outlive your policy.
  • Mortgage term life insurance. Coverage for repaying your home mortgage.
  • Instant answer term life insurance. No medical exam required and good for 10 years or until you’re 50 years old, whichever is longer.

State Farm’s whole life insurance policies offer lifetime financial protection while building tax-deferred cash value. Like term life insurance, these policies feature level premiums, but prices are much higher than term plans. You can borrow from the cash value of your policy, but outstanding loans or interest reduce the amount of your death benefit. State Farm offers two whole life insurance policies:

  • Limited pay life. Premium payments for 10, 15 or 20 years and tax-deferred cash value growth.
  • Single premium life. One premium payment, lifetime coverage.

State Farm’s universal life insurance policies offer flexible, investment-heavy alternatives to permanent life insurance. Tailor your premium amount and frequency to fit your needs. Policyholders have a choice between investment options featuring tax-deferred cash value accumulation. Death benefit payouts and policy loans are also tax-free. State Farm offers the standard universal life insurance policy, along with two others that cover two people:

  • Survivorship universal life insurance. Covers two people and the death benefit is paid out when the last person insured under the policy dies.
  • Joint universal life insurance. Covers two people, and the death benefit is paid out upon the first death of those insured.

Compare State Farm disability insurance

Does State Farm offer burial insurance?

Yes. State Farm’s final expense policy is open to seniors aged 50 to 80, or 50 to 75 in New York. It’s limited to $10,000, and coverage expires at age 100.

As a whole life insurance policy, it accumulates cash value over time and has the potential to earn dividends based on State Farm’s profits. You can also choose to pay your premiums monthly or annually.

What riders can I add to my life insurance policy?

While State Farm’s life insurance policies are comprehensive, add-ons allow you to tailor your policy with situational coverage and additional protection. Here are the life insurance riders available at State Farm:

  • Accidental death benefit rider. Provides an additional payment if the insured dies as the result of an accident.
  • Critical illness benefit rider. Access a portion of your death benefit amount every month if you become chronically ill.
  • Spouse rider. Provides additional coverage for your spouse, instead of purchasing a separate policy.
  • Child rider. Provides additional coverage for your child, instead of purchasing a separate policy.
  • Disability income benefit rider. Provides a monthly stipend to help cover expenses and support your family if you become disabled and unable to earn income.
  • Funeral expenses rider. Provides an additional payout to help cover funeral expenses.
  • Estate protection rider. Offsets any additional estate taxes if your life insurance policy is included in your estate.
  • Accelerated death benefit rider. Payout of a portion of benefits if you’re diagnosed with a terminal illness.
  • Long-term care benefit rider. This rider pays out a portion of the death benefit to cover the costs of long-term care.

How much does State Farm life cost?

We pulled sample rates using State Farm’s quote tool for a 20-year term, $500,000 policy for a healthy man and woman.

AgeManWoman
20$26.09$20.44
25$26.09$20.44
30$31.74$22.19
35$34.39$24.34
40$40.04$33.49
45$56.99$67.44
50$90.94$56.00
55$147.04$98.29
60$259.24$174.00

What factors affect my rate with State Farm?

Along with your age and gender, life insurers factor your health status and habits into your rate. Preferred Plus is State Farm’s best rate class, and here’s what you’ll need to be eligible:

  • Blood pressure under 115/70
  • Cholesterol under 175
  • No moving violations in the past two years, no DWI/DUI ever
  • No family history of cancer or heart disease
  • Regularly do routine, vigorous exercise

Pros and cons of State Farm life insurance

State Farm is best known for its industry-leading levels of customer satisfaction, but it does have its shortcomings.

Pros

  • Financial stability. State Farm received an A++ rating from AM Best, the most trustworthy rating agency for the insurance industry. This is the highest possible rating, meaning there’s no risk of this provider being unable to pay its claims.
  • Top-rated customer service. This provider has some of the best customer service in the industry, even offering 24/7 assistance via phone by calling 800-782-8332.
  • Strong product lineup. State Farm offers term, whole and universal life insurance policies with a range of different plans and options under each category. Your policy can be customized further with a wide range of rider offerings.

Cons

  • Strict underwriting. State Farm has some of the most strict underwriting guidelines in the industry. Those with pre-existing conditions, subpar driving records or even moderately high cholesterol levels may not be approved.
  • No variable universal life insurance. Universal life insurance is often the primary investment vehicle for many customers, so flexibility is an important factor. State Farm doesn’t offer variable universal life insurance, meaning investment options are limited.
  • High rates. Since State Farm’s underwriting guidelines are so strict, its best rate class is nearly unattainable. Unless you’re in incredible shape and have a clean driving record and family history, it’s likely you’ll find better rates elsewhere.

Compare alternatives to State Farm

Name Product Issue age Minimum Coverage Maximum Coverage Medical Exam Required
Sproutt
18 - 100 years old
$50,000
$3,000,000
No
This life insurance broker combines technology and the human touch to match you with a policy tailored to your needs.
Policygenius
18 - 85 years old
$10,000
$10,000,000+
Depends on provider and policy
Compare affordable quotes from 12+ A-rated life insurance companies side-by-side.
Bestow
21 - 54 years old
$50,000
$1,000,000
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Affordable 10- and 20-year term life insurance policies with instant quotes and no medical exams.
Everyday Life
20 - 75 years old
$100,000
$10,000,000
No
Build a customized laddering strategy to target specific financial responsibilities and save on term life.
Fabric
25 - 60 years old
$100,000
$5,000,000
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Get affordable term life insurance with accelerated underwriting or no-exam coverage up to $1,000,000. Available in all states except CA, NY and MT.
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State Farm reviews and complaints

JD Power ranked State Farm life insurance in first place four years in a row for overall customer satisfaction. However, that streak came to an end in 2019, with State Farm holding a close second to Northwestern Mutual life insurance.

State Farm is not accredited with the Better Business Bureau (BBB) or TrustPilot, but it does have an A- rating on the official BBB website. Despite its high levels of customer satisfaction and positive consumer reviews elsewhere, reviews on the BBB and TrustPilot websites showcase a lot of negativity. However, most of these complaints are about its auto insurance, so take this with a grain of salt.

How do I get a quote?

To get a quote from State Farm for life insurance:

  1. From the State Farm homepage, select Life Insurance, enter your state and then click Go.
  2. Enter personal and health info and select your desired coverage amount. Then click Get Quote.
  3. Select your term length and coverage amount, then add any riders or coverage for another person.
  4. Click Continue to apply online, or send your quote and policy to an agent to finish applying.
  5. Review your information and click Apply Online if you’re ready to finalize your policy.
  6. After you’ve been approved, register your account online to review your policy, make changes and set up autopay.

How do I file a life insurance claim with State Farm?

Filing a claim with State Farm can be done through your agent, online or by phone. Here’s how:

  • Agent. Locate your agent online and they’ll walk you through the process.
  • Phone. Call Life Claims at 877-292-0398, then select option 1 to start a new claim.
  • Online. Visit the online claim center to start your notice of loss, then follow the five steps.

What do I need to file a claim?

Regardless of which method you choose, here is the information you’ll need to provide:

  • Insured person’s full name and nickname (if any)
  • Date of birth
  • State of residence
  • Life insurance policy number (if known)
  • Date and cause of death
  • Name of person reporting the claim, and his/her relationship to the deceased
  • Daytime and evening phone numbers

After your agent receives the notification of death and contacts the beneficiary, they’ll take care of all necessary forms. You’ll be notified of the status of your claim and can manage it online.

Frequently asked questions about State Farm

Life insurance ratings

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★★★★★ — Good

★★★★★ — Average

★★★★★ — Subpar

★★★★★ — Poor

Our experts analyze life insurance companies to help you to find the strongest possible policy and premium for your family’s needs. We assess their financial strength, customer satisfaction, policy features and riders. We then give each insurer a score between one and five stars that reflects their offering and reputation in the industry.

Learn more about our methodology here.

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