Do you currently have life insurance? Or are you considering purchasing a policy in the near future? If so, you likely want to protect your family and loved ones financially in case the unexpected occurs. And you probably have a crucial question on your mind: Is State Farm’s life insurance really worth buying?
I faced the same question recently while evaluating options to cover my family. State Farm offered very reasonable rates compared to other major insurance providers. But beyond just cost, I needed to dig into the provider’s history, financial strength, and what policyholders had to say.
State Farm offers competitive and affordable life insurance policies. But is their life insurance really worth it? In this post, I will cover everything important you need to know to decide if State Farm life insurance is the right fit for you.
What Types of Life Insurance Does State Farm Offer?
State Farm provides all the major types of life insurance:
- Term life insurance – Provides temporary coverage for a set period of time, known as the “term.” This is the most affordable form of life insurance.
- Whole life insurance – Provides lifetime coverage as long as you make the premium payments. It has a cash value that grows over time.
- Universal life insurance – A flexible policy that combines permanent coverage with a cash value account. You can adjust your premiums and coverage.
- Final expense insurance – Smaller policies meant specifically to cover end-of-life costs like funeral and medical bills.
No matter what type you need, State Farm likely offers a policy that can work for your situation.
What Factors Impact Your State Farm Life Insurance Premiums?
When calculating your life insurance premiums, State Farm will take into account:
- Age – Generally, younger people pay less for coverage than older individuals.
- Gender – Because women statistically live longer, they may pay a lower rate at first.
- Health status – Applicants go through medical underwriting. Conditions like high blood pressure can increase premiums.
- Lifestyle – Risky hobbies and tobacco use can also impact what you pay.
Of course, the amount of coverage you select will play the biggest role in determining your total premium cost. A $1 million policy will require higher payments than a $100,000 one.
What Features & Riders Are Included?
Many State Farm life policies come with additional features and riders for customization:
- Waiver of premium – Waives payments if you become disabled
- Living benefits – Early payout if diagnosed with terminal illness
- Accidental death benefit – Extra payout if death is accidental
- Child rider – Coverage for children/grandchildren
Riders will increase your base policy premium, but allow you to tailor the coverage to your needs.
How Do State Farm’s Premiums & Ratings Compare?
State Farm enjoys strong financial strength ratings from agencies like A.M. Best. This indicates they have the resources to pay out claims.
In terms of cost, State Farm tends to offer very affordable rates, especially for healthy applicants purchasing term life insurance. They remain competitive with other big insurance carriers like Prudential, MetLife, and AIG.
Exact premiums will vary based on your personal details. I always recommend comparing quotes from multiple providers before choosing a policy. This ensures you get the best value.
Does State Farm Have Any Downsides?
While they offer solid life insurance options overall, a few potential State Farm downsides include:
- No online quotes – You must call an agent to start the application process. Other insurers let you get quotes digitally in minutes.
- More invasive underwriting – State Farm may require a paramed exam with blood/urine testing for large policies. Some competitors rely on just medical records.
- Higher rates later in life – Once you pass age 50-60, State Farm’s premiums are not always the most affordable.
That said, they remain an excellent choice for many life insurance buyers, especially the under-50 crowd purchasing term policies.
Who Is State Farm Life Insurance Best Suited For?
Based on its strengths and limitations, State Farm life tends to work best for:
- Young, healthy adults purchasing term life
- People who want to bundle life insurance with auto/home policies
- Buyers who value personalized service and agent guidance
State Farm excels at covering younger individuals, where underwriting is more clear-cut. Their package discounts also appeal to clients with multiple existing State Farm products.
If you have complex medical issues or want ultra-affordable rates later in life, you may wish to widen your search to carriers who specialize in higher-risk cases.
Is State Farm Worth Considering?
State Farm offers flexible, competitively priced life insurance suitable for policyholders in all stages of life. Backed by strong financial ratings and nearly 100 years of experience, State Farm remains an outstanding option to protect your loved ones.
Younger, healthier applicants will likely find State Farm’s straightforward term life insurance affordable and adequate for their coverage needs. The ability to bundle with other State Farm insurance products can also make their rates hard to beat.
That said, those with existing medical conditions or who want easier access to digital quotes may wish to also get quotes from carriers like Banner Life, Haven Life, and Bestow.
Ultimately there is no “one size fits all” life insurance provider. You have to compare personalized quotes between State Farm and other highly-rated companies. This ensures you make the best choice. But for many shoppers, State Farm will emerge as an excellent value pick.
With competitive pricing, strong financial ratings, and highly customizable policy options, I think State Farm remains a leading choice for life insurance, especially for younger individuals and families.
Getting quotes from State Farm and 1-2 other top-rated providers ensures you secure sufficient coverage at the best possible rate.