Last Updated: July 2019
Disclaimer: We are NOT State Farm Life Insurance.
Quick Tip: Complete the quote form on the side to get competitive life insurance quotes. Compare these quotes with the State Farm term life insurance quote you received – you’ll be happy you did.
You’re most likely here because you’re considering buying a State Farm life insurance policy or have already bought one, and you’re wondering if you’ve made or are making the right choice.
It turns out this is hard for many consumers to determine this because they have a good relationship with their State Farm agent. This review will give you an insider’s look. The information in this article is gathered from my State Farm life insurance friends combined with my life insurance industry knowledge.
- Is a State Farm Life Insurance Quote Competitive?
- About State Farm Life Insurance Underwriting & Medical Exam
- Why State Farm Agents Sell You Life Insurance
- State Farm Life Insurance Review: Frequently Asked Questions
- Compare State Farm Rates to Other Life Insurance Companies
Before you make your final life insurance purchase decision though, we recommend looking into some other company reviews as well, such as our reviews on Allianz Life Insurance, Zander Insurance, Primerica Life Insurance, and United Home. We believe in giving consumers real information to make informed decisions.
Now, let’s get started on our Review of State Farm Life Insurance
Is a State Farm Life Insurance Quote Competitive?
Let’s start by acknowledging that State Farm is a fantastic auto and homeowners insurance company. We know several State Farm agents and know dozens of families who have their insurance products. They all have great things to say about their agent and the company.
Here’s the thing: Every family we know that has their auto and home with State Farm, doesn’t have their life insurance with them because they simply are not competitive when it comes to rates. We wouldn’t let anyone we know have their life insurance with State Farm for reasons we’ll explain below.
Why State Farm is Usually Not the Best Choice for Life Insurance
Here are several of the reasons we typically do not recommend State Farm for life insurance.
- State Farm Term Life Insurance is overpriced.
- State Farm Whole Life Insurance is underperforming.
- State Farm Final Expense life insurance is overpriced and only allows one coverage amount.
However, State Farm agents are required to sell life insurance to hit various benchmarks. Every State Farm office has a life insurance quota to hit in order to hit their full compensation on all their other products, so they’re going to ask you to purchase life insurance if given the opportunity.
The Mistake People Make with State Farm Life Insurance
And the big misconception is:
If you bundle your homeowners insurance, auto insurance AND life insurance together, you’ll pay lower rates overall. This is simply NOT TRUE.
With auto and homeowners it’s true, but adding life insurance, it’s not. You cannot legally discount life insurance. Rates are the same no matter where you go with life insurance.
Every scenario we’ve run, our clients would be better off with one of the top 10 life insurance companies rather than State Farm.
About State Farm Life Insurance Underwriting & Medical Exam
We’ve helped dozens of State Farm clients with their life insurance after they were declined by State Farm for a life insurance policy. When it comes down to any medium or high risk life insurance policy, State Farm typically won’t offer any coverage.
We’ve helped some consumers obtain “standard” or “preferred” rates when they were previously declined by State Farm.
This includes very common impairments like:
- Bipolar disorder
Other impairments like COPD, cancer history, multiple sclerosis, heart attacks, and strokes are also insurable risks that we’ve personally seen State Farm decline and we’ve obtained affordable life insurance rates.
Remember, just like with any other company, you will have to take a State Farm Life Insurance medical exam, which includes a blood test. Your test results combined with your medical records will determine your ultimate health classification and rates.
If you’re in good health and don’t have any medical issues, even State Farm life insurance’s best health class doesn’t compare to what you can obtain on the open market.
Why State Farm Agents Sell You Life Insurance
I don’t want this to sound like we’re picking on State Farm because of their overpriced life insurance with below-average underwriting. They really are a great company when it comes down to personal auto and homeowners.
Life insurance just isn’t in their wheelhouse.
So why would your friendly State Farm agent sell you an overpriced life insurance policy?
Well, State Farm’s agents have life insurance quota’s they have to meet. I actually feel bad for the agents because they HAVE to sell their over-priced life insurance. I hear this complaint from my State Farm agent friends (who I would never out) and on internet message boards.
Here is one of those message board threads: Thread #2
We understand that some people have a good relationship with their neighborhood State Farm agent. For those people, we suggest you obtain a quote from an independent life insurance agency like ours and compare it to your State Farm life insurance quote. Bring it into their office and give them a chance to beat what we give you. You can even run the rates yourself on their website. Choose the best offer.
Term life insurance is a commodity. As long as you get it from an AM Best “A” rated company or better, you should go for the best-priced term life insurance policy. If you’re looking for whole life coverage, compare the illustrations and expenses in each policy – State Farm isn’t competitive in term or whole life situations…ever.
For those that don’t have that relationship with their State Farm agent, we encourage you to compare quotes on our website.
State Farm Life Insurance Review: Frequently Asked Questions
If you have any questions, please comment on this post and I’ll add the question to this section and answer thoroughly and notify you when I do.
Does State Farm Life Insurance Pay Claims Quickly?
Yes, State Farm life insurance death claims are paid quickly. The consensus in the field from agents is that claims are paid quickly. Especially after the policy has been in force for 2 years and is beyond the contestability period.
If you have a death claim, just call their customer service line and they’ll send the claim forms.
What is their Application Process Like?
It’s just like every other life insurance company. You must complete a medical exam (which consists of a blood and urine test) and then the underwriters will review your medical records combined with your application and exam and make a decision. The process typically takes 4-6 weeks.
What is the Financial Rating of State Farm life insurance?
The industry benchmark in the life insurance industry for financial strength is from AM Best. State Farm life insurance has an “A++” rating – the highest you can get. They have a very strong claims-paying ability.
What about State Farm Life Insurance Complaints?
Any time you’re a massive company like State Farm, you’re going to have unhappy customers for one reason or another. Most of the complaints we’ve seen online are consumers who just didn’t understand the process of applying for life insurance – saying the process took too long or the rates came back higher than they applied for (usually the consumer not disclosing medical information to their agent).
State Farm is a fine insurance company. The only real complaints consumers should have is with their high life insurance rates. Other than that, I’d dismiss anything else.
Is State Farm Guaranteed Acceptance Life Insurance Good?
State Farm does NOT have a “Guaranteed Acceptance” life insurance plan.
They have a final expense policy, but there are health questions to qualify for it. If you want a guaranteed acceptance life insurance policy, go to Mutual of Omaha directly. They have the best priced guaranteed acceptance life insurance policy on the market today.
Does State Farm have Living Benefits on their Life Insurance Policies?
No, they don’t.
If you’re looking for living benefits where you can access your death benefit in the event of a cancer diagnosis, heart attack, stroke or other conditions, look at policies from Ameritas and American National. They’ll be cheaper than State Farm and have living benefits attached to them.
Compare State Farm Rates to Other Life Insurance Companies
We’ve established that State Farm’s life insurance rates aren’t competitive. If you don’t want to take our word for it, you can run rates on the State Farm life insurance calculator here.
Then compare those rates to the life insurance quote engine on this page.
You’ll find that it doesn’t matter what age, coverage amount or death benefit you’re seeking – you can find better life insurance rates working with an independent life insurance agent outside of State Farm.
And for term life insurance and final expense life insurance, it really is all about price. Term life insurance and final expense life insurance is a commodity. You want to find the lowest price possible from a highly rated carrier (we only quote highly rated carriers).
For whole life insurance, it’s about performance and while we can’t effectively show you how other life insurance companies outperform State Farm, if you really want to know, give us a call and we’ll examine your policy or illustration they sent you.
We know your State Farm life insurance agent is a good person and they work for an admirable company, but you can find better life insurance options.
Alternatives to State Farm Life Insurance
We don’t work on behalf of any specific company, we work on behalf of our clients.
Our agency has over 50 life insurance companies to choose from. You should know that we will always find the best coverage at the lowest possible cost that is best for you and your needs.
We hope this State Farm life insurance review and information was useful. Please don’t hesitate to call or fill out our request form for quotes or with any questions.
Here are some other life insurance companies to consider along with State Farm.
- Allianz Life Insurance
- Phoenix Life Insurance
- HSBC Life Insurance
- Voya Life Insurance
- Genworth Life Insurance