State Farm Long Term Care Insurance Review

Rating: 8.9 / 10 (Excellent)
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State Farm is the largest property and casualty insurance company in the United States. Its long term care insurance is sold only through its network of agents, although quotes are available online. The company is located in Bloomington, Illinois and does business in every state and the District of Columbia.

How is State Farm rated?

Breakdown

10/10
Claims & Benefits
9/10
Policies & Coverage
7/10
Financial Strength
9/10
Reputation

Overall Rating: 8.9 / 10 (Excellent)

State Farm is a solid choice for long term care insurance. With solid financials and almost a century operations, the company appears to be prudently managed-an important consideration when purchasing policies that may not pay out for years or decades. Like many large old-established companies, State Farm has been involved in some consumer litigation and state regulatory actions. These, however, have not involved the company's long term care insurance products. State Farm shines when it comes to coverage, claims, and benefits, the only potential negative there being that all claims must go through one of its agents.

Policies & Coverage

Policies & Coverage - 9 / 10

State Farm offers a solid array of long term care policy options, but not all options are available in all states. It sells policies that qualify under the long term care partnership rules of all states that participate in the program. The company also offers a rider on its life insurance policies that, in effect, converts them into a hybrid life/LTC policy. These riders, however, are not available in California or New York.
Policy Types
Individual / Standard
State Partnership
Hybrid Life and Long Term Care
Tax Qualified
Types of Covered Care
In-Home Care
Assisted Living / Adult Day Care
Nursing Home
Hospice Care
Medical Help Systems
Facility Coverage
Any Facility
Available Policy Riders
Inflation Protection
Return of Premium
Waiver of Premium
Home Modification

Inflation Protection

You can choose inflation protection in one of several formats: Future Purchase Option, Simple Automatic Increase Benefit, Compound Automatic Increase Benefit

Claims & Benefits

Claims & Benefits - 10 / 10

State Farm's claims and benefits procedures are superior to most in the long term care insurance industry. Its $500 daily limit should be more than sufficient to pay for 24/7 home health aide care or for care in a nursing home. The company's benefits triggers are also reasonably designed and do not unduly burden consumers. For eligibility, State Farm policyholders must be unable to perform two activities of daily living. All claims for benefits must be processed through a State Farm agent, a practice that will please some customers and frustrate others.
Maximum Daily Benefit Limit
$500 per day
Lifetime Benefit Period
5 years
Unlimited Lifetime Benefit Period?
No
Elimination Period
30, 60, or 90 days
Eligibility Requirements
Activities of Daily Living Limitations
Physician Certification / Letter
Alzheimer's or Cognitive Impairment

Financial Strength & Ratings

Financial Strength - 7 / 10

One of the largest insurance companies in the world, State Farm is a Fortune 50 company that's highly rated by financial analysts. Further, the company has been in business since 1922, which suggests prudent financial management in good times and bad.
Underwriter
State Farm Insurance Company
Moody's Financial Rating
Aa1
AM Best Financial Rating
A++
Standard & Poor's Financial Rating
AA
*The above information reflects the financial strength of the underwriter of the State Farm long term care insurance policies: State Farm Insurance Company.

State Farm Reputation

Reputation - 9 / 10

Reputational data for State Farm has to be viewed with an understanding that the company is one of the largest insurers in the country and offers many different lines of insurance. It's not usually possible to separate consumer comments about the company's long term care insurance from comments about its other insurance products. The company's lopsided number of negative BBB reviews is typical for a large company of this nature. State Farm was recently forced to refund overcharges of $13 million to California homeowners and renters policyholders. Though that doesn't bear directly on long term care policyholders, consumers would do well to closely scrutinize their billing statements from State Farm and other insurers to make sure they are being fairly charged.
Trust Pilot Rating
7.5 out of 10
BBB Rating
A-
Number of BBB Positive Reviews
4
Number of BBB Neutral Reviews
3
Number of BBB Negative Reviews
138
Date Collected
2017-10-31

Contact & Additional Information

Company Type
Underwriter
Year Founded
1922
Homepage URL
Company Phone
(800) 782-8332
Headquarters Address
One State Farm Plaza, Bloomington, IL, 61710
Mailing Address
One State Farm Plaza, Bloomington, IL, 61710

Top Rated
Our Partner
9.8 / 10
  • Rated A+ by the BBB
  • Monthly cash benefits for spousal home care
  • Nationwide network of agents
  • Affiliated with top long term care carriers
  • Applicants between the ages of 30 and 79 will be considered for coverage.
  • Choose between multiple long term care insurance policies

Latest State Farm Reviews

J
James P
Lee's Summit, Missouri

3/10/2017
I currently have LTC through State Farm since Agee 55.. now 75. They continue to raise my premier each hear 30-40% and give no real reason other than...expenses....would like to know their income vs pay out on this one sector. I feel like they are trying to " run me out" with continued outrageous increases.... Just show me the numbers,etc....Thinking about calling my ATG in Mo and raise a complaint... I need information from State Farm but can't get a corporate number?