State Farm Life Insurance Review

Background-State Farm Life Insurance

State Farm was founded in 1922 by George J. Mecherle, a retired Illinois farmer. Initially focusing on auto insurance for his fellow land workers, the company Mecherle founded moved into other areas and started to offer life insurance right at the beginning of the Great Depression. They are currently the 8th largest provider of life insurance servicing 7.8 million policies across the US and Canada. State Farm offers life insurance in all states except for Massachusetts, Wisconsin and New York. 

The stalwart company is a recognized leader in the life insurance industry and currently offers three major type of life insurance policies; Term life, Whole life and Universal life. These life insurance categories are further sub-divided into more detailed plans that offer its own unique coverage and rider options. Term Life Insurance is available at 10, 20 and 30 years and is offered up to age 95. Optional services also include managed accounts, retirement and estate planning, annuities and long term care. The company also offers 24/7 support for both claims and payment services.

Company Reputation

State Farm Is the country's #1 insurer of individual life insurance policies. They are a Fortune 500 company and employ more than 65,000 people. It would indeed be difficult to obtain a better reputation than State Farm. They are consistently ranked among the highest in all agencies.

Customer Experience

The National Association of Insurance Commissioners gave State Farm a complaint ratio of .13 for 2015. While this is higher than average for the companies we rank, it's on the low end considering the life insurance industry as a whole. 

State Farm is also not so agent-centric for such an established company. They offer you the option of calculating insurance, getting a quote, and even applying online.

State Farm is a member of the Marketplace Standards Association, an independent  organization that promotes ethical conduct.

Policies

State Farm life is able to offer a huge variety of flexible coverage options. Premium-wise you're going to pay a price for this reputation and level of service, and State Farm isn't the cheapest company out there. But in our opinion this is definitely one of those occasions where you get what you pay for. Some standard policy options include:

Guaranteed renewal on term plans up until age 95
Level premiums for whole life
Level premiums for initial period of term plan, increased premiums will never exceed what's stipulated in contract
Term convertible to permanent with guaranteed purchase option (no medical exam)
Return of premium
Mortgage term
Discounts for State Farm auto insurance

Sample State Farm policies:

Term Life

Whole Life

Universal Life

Additional Features

State Farm scores high here because they offer the most robust list of policy riders in the business. This allows customers incredible flexibility in customizing their policy to fit their specific needs. Term, whole and universal plans can enjoy add-ons for everything from disability income to funeral expenses. Of particular note is the company's flexible care benefit rider, which allows customers to access a portion of their policy's death benefit in the event of a chronic illness.

Plan Riders

Accidental Death
Flexible Care Benefit
Child
Disability Income
Funeral Expenses
Additional Insured
Estate Protection
Accelerated Benefits
Death Benefit Guarantee
Long Term Care Benefit

Help and Support

State Farm offers unparalleled support among life insurance entities. The company has customer care reps available by phone 24/7. Round the clock support is also available when managing accounts online. The company is also accessible through email and social media.

Online Presence

Unique among the more traditional/older insurance companies, State Farm has an extensive online presence featuring a robust searchable learning center containing news, articles, videos, columns, and advice for beginners through experts. Mobile apps for iPhone and Android are also available. 

Additionally, determining the amount of life insurance coverage you'll need is incredibly easy (and fun) with their online life insurance calculator. You can then get quotes, apply for insurance and manage your account all online. 

State Farm Life Insurance

State Farm Life Insurance ranks highly on our list because of their history, reliability, reputation, customer service - but primarily because of their huge amount of flexible plans and fantastic rider options that allow for maximum customization. Great policy features including access to cash value, guaranteed death benefits, accelerated death benefits and optional coverage items are definitely marks in their column as well.

The only downside we can see is that premiums tend to be on the pricier side when compared to other similarly featured offers from other life insurance providers. Charges and fees are also a concern. But as we said above, you get what you pay for. Everyone knows State Farm is a rock solid company with an outstanding reputation you can depend upon.