State Farm is one of the biggest companies in our country. So it’s no surprise that they are a wonderful company which focuses on great service and products to its policyholders. But like most big auto and home companies, State Farm may not be the best deal when it comes life insurance. So whether you have been thinking about bundling life insurance to your existing auto and home coverage or you saw one of the many great advertisements with State Farm keep reading to find out more. In this article, we will be discussing the history of State Farm, we will provide an honest review, highlights of their products, and of course some pros of theirs. The following are some key points from this article;
- Now as far as company strength State Farm is an outstanding company and is rated A++ by A.M. Best. This is the highest rating an insurance company can get.
- In addition to that, they do have around 40 million policyholders which does say a lot and is what you would expect from a company that has been around since 1922.
- The company’s service is superb and they practice what they preach. So if you are healthy and not price conscious than getting life insurance from State Farm is not such a bad idea.
- State Farm has term life insurance ranging from 10 to 30 years based on your preference. They also have a 5 year term if you need short duration plan.
- They have a whole life plan that you can pay monthly or in larger sums like 10 to 20 payments. If you pick larger sum payments you can have your policy paid up at the end of it. You can even make a single payment to have your life insurance policy paid up.
- Working with many clients who were State Farm policyholders that wanted to shop their life insurance policy, it became quite clear that they are not as competitive as one may think. For instance, a 51-year-old female in great health looking for $500,000 20 year term would get a quote of $87.85 per month with State Farm or she can get the same plan for $64.20 per month with one of the many companies we represent called Protective. That’s $5674 she would have saved over the life of the policy!
State Farm Life Insurance Company History
State Farm started out as a property and casualty carrier who was owned by policyholders and not stock brokers, this is known as a mutual company. As a new company they initially niched out in providing coverage for farming equipment and after a while went after the property business. They are known by their famous little catchy jingle which I can’t remember now but something about being a good neighbor. This is one of the biggest and best insurance company’s around and I’d highly recommend them for any of their products but you can do better with other companies when it comes to life insurance.
State Farm Life Insurance 2017 Review
Now as far as company strength State Farm is an outstanding company and is rated A++ by A.M. Best. This is the highest rating an insurance company can get. In addition to that they do have around 40 million policyholders which say a lot but you would expect that from a company that has been around since 1922. The company’s service is superb and they practice what they preach. So if you are healthy and not price conscious than getting life insurance from State Farm is not such a bad idea.
State Farm Term Life Insurance
Term life insurance is a form of temporary life insurance that provides coverage for a short and specified period of time. “Term” refers to the period of time that you want to remain covered for. Most life insurance companies offer term periods of 10, 15, 20, or 30-years. Term life insurance is actually the most affordable life insurance in the whole market. Term life insurance is the type of insurance that can fill a temporary need like a loan and is perfect for those who don’t have the means to buy a permanent life insurance policy. You can select term lengths from 10 to 30 years
State Farm Whole Life Insurance
Whole life insurance is a lifetime coverage that will protect you until the ripe age of 100! Whole life insurance is one of the best permanent life insurance policies. Since it’s a permanent life insurance policy you will have the ability to build and accumulate cash value. Cash value is something that you can borrow from your policy in the times you need it the most like for your premiums or for your children’s college funds. Cash value is tax-deferred as well! Just like any other whole life plan State Farm’s Whole Life provides lifetime cover while also building up your cash value. The cash value can be a great addition to your retirement portfolio or to simply have savings for an emergency fund. They have a whole life plan that you can pay monthly or in larger sums like 10 to 20 payments. If you pick larger sum payments you can have your policy paid up at the end of it. You can even make a single payment to have your life insurance policy paid up.
State Farm Life Insurance Riders
If you didn’t already know, you can add-on an additional benefit to your life insurance policy. Whether it’s term, universal, or whole life. Add-ons or riders can make any simple boring insurance policy very appealing. Here are some of the riders offered:
- Disability Rider- Disability rider allows you to access your policy’s face amount if you became disabled.
- Waiver of Premium- This rider will waive your premiums and ensure that your policy stays in force if you become disabled with an inability to work.
- Guaranteed Insurability- Allows you to buy up more life insurance on your policy regardless of your eligibility due to health or lifestyle.
State Farm Life Insurance Cons
Cost
We all want to save as much as possible on our bills every month and it’s no different when it comes to life insurance. Working with many clients who were State Farm policyholders that wanted to shop their life insurance policy, it became quite clear that they are not as competitive as one may think. For instance, a 51-year-old female in great health looking for $500,000 20 year term would get a quote of $87.85 per month with State Farm or she can get the same plan for $64.20 per month with one of the many companies we represent called Protective. That’s $5674 she would saved over the life of the policy! Now if you are not in the ideal health or don’t match their build charts for the preferred risk the cost difference can be even more drastic.
Underwriting
When you apply for traditional life insurance coverage there is a process when the company decides your risk level and whether or not you should be accepted. This is known as underwriting and each company has different guidelines. State Farm has less lenient underwriting than some other major life insurance players, so if you have medical conditions prepare to be heavily rated or even declined. We helped many people get life insurance even when State Farm turned them down. If you have been turned down for diabetes, depression or any other medical condition there is a company that will offer you a plan.
Work with us!
The big thing to understand here is that all though many companies offer a lot of different types of insurance products. They all have one or two core products they are the most competitive in and for State Farm life insurance is not that product. If you are comparing quotes or just shopping an existing policy feel free to use our quote engine to compare life insurance quotes from all the top companies in the marketplace. We are not an agency or do not represent State Farm but do represent over 60 top life insurance companies such as Metlife, Prudential, Fidelity and many others.Let us do all the comparing for you with our free service because we have zero ties and don’t push clients towards a company because they offer better commissions, we care about our clients and have loyalty to only our clients. Give us a call or leave us a comment below if you have any questions or concerns! So if you are ready to see what rates are available to you click here or call us at (888)492-1967 for a no obligation quote.
