State Farm life insurance ranks as one of the best life insurance companies in the industry by offering a wide selection of coverage options and diverse policy riders. Though their products are not the cheapest, their flexible policy options provide enhanced value for many customers.
State Farm life insurance offers a number of different term, life, and universal coverages that can be tailored to fit any individual need. Flexible policy options like term conversion, cash surrender, and survivorship ensure that State Farm's permanent policies evolve with the changing needs of their policyholders. The availability of a 20- or 30-year return of premium policy with flexible coverage minimums provides additional choices and makes obtaining an insurance policy much more approachable for younger buyers.
Numerous policy riders:
State Farm life insurance riders give policyholders a means to tailor their standard coverage to their individual needs. The company offers the most complete set of riders in the industry, making their term, whole, and universal policies very flexible. Available policy riders include coverage for everything from disability income to long-term care, accidental death benefits, and funeral expenses.
Solid online tools and learning materials:
State Farm is clearly dedicated to educating its customers, providing all the information you need to make a confident policy decision. If you're new to life insurance and need to learn the basics, you can find some excellent beginner guides to get you going. For more advanced study, the State Farm Learning Center offers a range of articles touching on all the important questions you need to answer when considering your policy options. Once you have the basics down, State Farm's Life Illustrated Calculator helps you estimate the amount of insurance you need based on the details of your lifestyle, current finances, and future obligations. You also have access to one of the best online quote tools in the industry, which offers quotations for a variety of life insurance products, not just term life insurance like many of the tools offered by competitors. After completing a quote, you can send the details directly to a local State Farm agent for a professional review.
Strong customer support and payment flexibility:
With around-the-clock telephone support for both claims and payment services, you're always able to get in touch with a State Farm representative. You can also contact customer support directly via email, Facebook or Twitter. When it comes time to pay your premium, you pay your full premium in advance or spread it out over two, four, or 12 installments. To submit a payment, use the State Farm Pocket Agent app, log in to your account online, or call in to payment services. You can even walk into your local State Farm agency.
Moderate fees and charges:
Though State Farm's fees and charges are not outrageous, they're not especially favorable either. The company assesses a daily mortality and expense risk charge that amounts to an annual rate of 0.8% of net assets, roughly standard for the industry. In most cases, early cancellation of your policy induces surrender charges, which amount to 9% on the cash value of your account for cancellation in the first year, falling 1% each year thereafter. Though State Farm life insurance does offer commission-free policies, if you're a price-conscious shopper looking to minimize your ongoing costs, you may want to shop around for a better deal.
A.M. Best FSR Rating
A.M. Best ICR Rating
Term, Whole, Universal
Standard & Poor's Rating
A.M. Best "Excellent" or Better - The insurance company has an A.M. Best rating of "A-" or better.
ICR Rating "Stable" - The insurance company has an A.M. Best Credit Rating of "Stable" or better.
Moody's "Very Strong" - The insurance company has a Moody's rating of "Aa3" or better.
S&P Rated "Very Strong" - The insurance company has an S&P rating of "AA-" or better.
Cash Value Access - The policy owner can access or borrow against the value of policy accounts.
Dividends - The policy owner can receive periodic dividends based on account performance.
Dynamic Premium Amount - You decide the amount and date of premium payments, subject to basic minimums.
Graded Premium Option - The life insurance company offers a policy that starts with a low initial premium and gradually increases over time.
Guaranteed Level Premiums - Premiums do not increase over time but remain constant for the entire life of the policy.
Interest Rate Guarantee - You receive a guaranteed minimum level of interest in the contract.
Level Death Benefit - A policy where the death benefit remains level is available.
Limited Premium Payments - Whole life insurance premium payments can be limited to a fixed number of years.
No Exam Term Conversion - The insurance company guarantees conversion of a term policy to a cash value or permanent policy offered by the life insurance company without a physical exam.
Paid-Up Additions - You can purchase additional insurance with paid-out policy dividends.
Partial Surrenders - You can withdraw funds up to a certain percentage of the policy value.
Tax-Deferred Growth - The cash value of the policy grows tax-deferred.
Term Renewal Guarantee - You are guaranteed a renewal option annually after term expiration.
Variable Death Benefit - A policy where the death benefit increases or decreases with your policy account value is available.
Waiver of Monthly Deductions - Future monthly deductions are waived in the event of disability.
Expiration or Lapse Guarantee - The policy does not expire if premiums paid are insufficient.
Accelerated Benefit for Terminal Illness - A rider which grants early access to the death benefit to defray the cost of a terminal illness is available.
Accidental Death Benefit - A rider that pays an additional death benefit in the event of the accidental death of the insured is available.
Additional Insured Rider - A rider that extends coverage to an additional person/spouse is available.
Child Rider - An added rider that covers the death of your child is available.
Disability Income Rider - An added rider that provides income in the event of a bodily injury that prevents you from working is offered.
Estate Protection Rider - A rider that provides extra coverage to offset estate taxes if the policy is included in the insured's estate is offered.
Final Expenses Policy - A rider or a policy that covers funeral expenses is available.
Long-Term Care Rider - A rider is available that covers the cost of long-term care if needed during the policy term.
Whole Life Guaranteed Insurability Rider - An option to guarantee future insurability at standard rates without further proof of insurability is available.
All Policy Types - Term, whole, and universal coverage options are available.
Cash Surrender Option - Policyholders of lapsed or surrendered policies can request immediate cash disbursement or remaining balances.
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