State Farm Life Insurance Company Review – Forbes Advisor - Forbes
About State Farm Life Insurance
State Farm offers three primary types of life insurance: term life insurance, universal life insurance and whole life insurance.
If you're looking for coverage for a specific amount of time with a set premium and death benefit, term life insurance may be the best option.
If you want more flexibility in premiums and death benefits, with a cash value component, universal life insurance can be a better choice. And if you're looking for fixed premiums with guaranteed cash value accumulation, whole life insurance could be the way to go.
The cash value growth within universal and whole life insurance policies is tax-deferred.
State Farm Term Life Insurance
Term life insurance provides a level premium for a set period of time or "term," such as 10, 20 or 30 years. If you die during this time, your beneficiaries receive a tax-free death benefit. If you outlive the term, you can renew—but often for a higher rate.
State Farm has three term life insurance policies, some of which can be converted into permanent life insurance if you want it to build cash value down the road.
State Farm's Select Term life insurance comes in 10-, 20- and 30-year terms with coverage starting at $100,000. You can renew it until age 95.
State Farm's return of premium term life insurance provides a refund of premiums if you outlive the term period. This policy also builds cash value you can borrow from. However, withdrawals and loans will decrease the death benefit if you pass away.
State Farm's Instant Answer Term life insurance is no-exam life insurance. It offers $50,000 in coverage for 10 years or until age 50, whichever comes later. While there's no medical exam, you do have to answer a health questionnaire, which can disqualify you for coverage. You must also visit a State Farm agent's office to apply.
State Farm term life insurance comparison
State Farm's Term Life Insurance Rates
Here's a look at State Farm term life insurance rates for a variety of ages and amounts.
State Farm 20-year term life insurance rates by age and amount
State Farm 20-year term life insurance rates compared to competitors
State Farm's term life rates are significantly than the competitors we analyzed.
Related: Best term life insurance companies
State Farm Universal Life Insurance
Universal life insurance is a type of permanent policy where you can adjust your premiums or death benefit, within certain parameters. Some people prefer it over whole life insurance because it's generally less expensive but still can still build cash value and provide lifelong coverage.
State Farm's universal life insurance policies offer lifelong protection and living benefits that you can use to pay premiums, cover emergencies and more.
State Farm universal life insurance is the company's most flexible permanent policy. It builds cash value and is available to individuals ages 0 to 85. Coverage starts at $25,000 or $50,000, depending on your age, and you can raise or lower your premiums as needed.
It's important to remember that universal life insurance policies can lapse if the cash value gets too low to cover policy expenses and fees that are charged each month by the insurer.
State Farm also has two types of universal policies that cover two people in one.
With State Farm's survivorship universal life insurance, beneficiaries receive a payout only after both policyholders have died. This type of policy is often used for estate planning, funding a special needs trust or leaving gifts to your favorite charities. It's generally less expensive than buying two separate life insurance policies.
State Farm's joint universal life insurance insures two people under one policy and pays a benefit after the first person dies. It's mainly used to cover living expenses for a surviving spouse or to fund buy-sell agreements between business partners. Any unpaid policy loans or withdrawals at the time of death will reduce the death benefit amount.
State Farm universal life insurance comparison