State Farm Life Insurance Review: Is it A Good Choice?

Life insurance is a critical investment that can safeguard your loved ones in the event of your untimely demise. If you’re in the market for life insurance, State Farm is a well-known name in the industry. With a wide range of policies and coverage options, State Farm is a great choice for many individuals and families.

What is State Farm Life Insurance?

State Farm is an insurance company that provides a range of insurance policies, including life insurance. Founded in 1922, the company has a long history of providing reliable insurance options to its customers. State Farm offers both term life insurance and permanent life insurance policies.

Term Life Insurance

Term life insurance is the most common type of life insurance policy. It provides coverage for a set amount of time, typically between 10 and 30 years. If you die during the term of the policy, your beneficiaries will receive the death benefit.

State Farm’s term life insurance policies come in two types: Select Term and Instant Answer Term. The Select Term policy allows you to choose your coverage amount and length of coverage, while the Instant Answer Term policy provides up to $50,000 in coverage without requiring a medical exam.

Pros of Term Life Insurance

1. Lower premiums than permanent life insurance policies
2. Flexible coverage options
3. Simple and straightforward policies
4. No investment component

Cons of Term Life Insurance

1. Only provides coverage for a set period of time
2. No cash value or investment component
3. Not suitable for estate planning or business continuation purposes

Permanent Life Insurance

Permanent life insurance is a type of policy that provides coverage for the entirety of the policyholder’s life, as long as the premiums are paid. There are several types of permanent life insurance policies, including whole life insurance, universal life insurance, and variable life insurance.

State Farm offers both whole life insurance and universal life insurance policies.

Pros of Permanent Life Insurance

1. Provides lifetime coverage
2. Accumulates cash value that can be borrowed against or used to pay premiums
3. Can serve as an investment vehicle
4. Suitable for estate planning and business continuation purposes

Cons of Permanent Life Insurance

1. Higher premiums than term life insurance policies
2. Complex policies that may be difficult to understand
3. Investment component may not produce significant returns
4. Borrowing against the cash value can reduce the death benefit

State Farm Life Insurance Rates

The cost of your State Farm life insurance policy will depend on several factors, including your age, health, and coverage amount. State Farm offers competitive rates for its life insurance policies, and you can get a free quote online or by speaking with an agent.

As an example, we got a quote for a 35-year-old female in excellent health. The Select Term policy with a 20-year term and $250,000 in coverage had a monthly premium of $19.64. The whole life policy with $250,000 in coverage had a monthly premium of $206.68. Your rates may vary based on your individual circumstances.

State Farm Life Insurance Reviews

When choosing a life insurance provider, it’s important to consider the experiences of other customers. State Farm has a strong reputation in the insurance industry, with an A+ rating from the Better Business Bureau and high ratings from independent rating agencies like AM Best and Moody’s.

On ConsumerAffairs, State Farm has a 3.7 out of 5-star rating based on 301 ratings. Many customers report positive experiences with State Farm’s customer service and claim handling process. Some negative reviews mention high premiums or difficulty getting approved for coverage.

FAQs

1. How do I get a quote for State Farm life insurance?

You can get a free quote for State Farm life insurance online or by speaking with an agent. To get a quote online, visit State Farm’s website and enter your information into the quote tool.

2. What factors affect the cost of my State Farm life insurance policy?

Several factors can affect the cost of your State Farm life insurance policy, including your age, health, and coverage amount. Generally, younger and healthier individuals will have lower premiums than older or less healthy individuals.

3. Can I change my coverage amount or policy type after I’ve purchased a State Farm life insurance policy?

Yes, you can make changes to your State Farm life insurance policy after you’ve purchased it. However, making changes may affect your premiums or death benefit, so it’s important to speak with your agent before making any changes.

4. What happens if I miss a premium payment for my State Farm life insurance policy?

If you miss a premium payment for your State Farm life insurance policy, you’ll typically have a grace period of 30 days to make the payment before the policy lapses. If the policy does lapse, you may be able to reinstate it by paying the missed premiums and any applicable fees.

Conclusion

State Farm is a reliable and trusted provider of life insurance policies. Whether you’re in the market for term life insurance or permanent life insurance, State Farm has a range of options to suit your needs. With competitive rates and positive customer reviews, State Farm is a great choice for many individuals and families.