State Farm life insurance review; State Farm stands out from many competitors because of its financial strength, giving life insurance buyers the confidence that the company will be able to meet its obligations for many years to come. Whole-life buyers can also benefit from State Farm’s highly reliable policy illustrations and cash value that accumulates well, even in the first few years of the policy.
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2023: State Farm Life Insurance Review
State Farm offers three main types of life insurance: term life insurance, universal life insurance, and whole life insurance.
If you’re looking for coverage for a specific period of time with a fixed premium and a 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 may be a better option. And if you’re looking for fixed premiums with guaranteed cash value buildup, whole life insurance might be the way to go.
Cash value growth within universal and whole life insurance policies is tax-deferred.
Types of life insurance sold by State Farm
State Farm sells three types of life insurance products:
- The Whole Life
- Universal Life
- Term Life Insurance
1. 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 survive 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 to permanent life if you want to build cash value in the future.
State Farm Select Term Life comes in 10, 20, and 30-year terms with coverage starting at $100,000. You can renew it for up to 95 years.
State Farm Return of Premium Term Life insurance provides a refund of premiums if you survive the term. This policy also builds cash value that you can borrow from. However, withdrawals and loans will decrease the death benefit if you die.
State Farm Instant Response Term Life Insurance is no-exam life insurance. Offers $50,000 in coverage for 10 years or up to 50 years, whichever is later. While there is no medical exam, you must answer a health questionnaire, which may disqualify you for coverage. You must also visit a State Farm agent’s office to apply.
2. 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 permanent life insurance because it is generally less expensive, but can still build cash value and provide lifetime coverage.
State Farm universal life insurance policies offer lifetime 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. Creates cash value and is available to people ages 0-85. Coverage starts at $25,000 or $50,000, depending on your age, and you can increase or decrease your premiums as needed.
It is important to remember that universal life insurance policies can lapse if the cash value is too low to cover the expenses of the policy and the fees charged each month by the insurer.
3. State Farm Whole Life Insurance
Whole life insurance offers lifetime protection and builds cash value. Because State Farm Life is a mutual company, there is the possibility of earning dividends. Whole life insurance has fixed premiums that won’t change, but it’s generally one of the most expensive forms of life insurance to buy.
State Farm limited payment life insurance could be attractive to young adults who want permanent protection. You can pay off the policy in 10, 15, or 20 years, then enjoy coverage for a lifetime and avoid paying premiums after retirement. The policy builds cash value and may earn dividends that you can use as additional cash, pay premiums, or purchase additional coverage.
State Farm’s single premium life insurance policy works just like it sounds: you pay a single premium that instantly “pays off” her entire life policy. State Farm’s single premium face amount starts at $15,000, with the option to accumulate cash value and earn dividends.
The State Farm final expense policy is designed to cover burial expenses when you die (although beneficiaries can technically use the money for anything). State Farm burial insurance is available to buyers ages 50 to 80 (or 50 to 75 in New York) and pays a fixed $10,000 death benefit. It also builds cash value and can earn dividends.
State Farm Life Insurance Review – Pros and Cons
Pros
- Very Reliable Policy Illustrations
- Superior financial strength
Cons
- Not all State Farm whole-life policies have low in-house costs. This means that more of your premiums can go toward policy expense rather than cash value. Please make sure you are happy with the policy illustration before purchasing.
State Farm Life Insurance Review – Life Insurance Riders
Life insurance riders allow you to customize a policy to best fit your needs. State Farm offers the following optional riders, although exact availability may depend on the policy type.
1. Children’s Term Rider
If you have children under the age of 25, this rider will extend temporary coverage for them, up to $20,000 each, until they reach age 25. If you want to continue coverage after age 25, you can convert it to a permanent policy.
2. Estate Preservation Rider
The State Farm Wealth Preservation Rider gives you an additional death benefit to help cover tax planning issues during the first four years of your policy.
3. Flexible Care Benefit Rider
Consider adding this rider if you want expedited benefits to help cover the cost of long-term care expenses if you have a chronic illness. Using this rider may decrease the amount of your death benefit.
4. Guaranteed insurability option
This State Farm add-on allows you to increase your life insurance amount at specified times without having to take a medical exam.
5. Additional clause of the level term
Consider adding this type of rider if you want to insure your spouse (or another person between the ages of 16 and 75) on your policy up to age 95.
6. Payer Insurance Rider
If you have a child on your policy and they become disabled or dies, this rider will help cover premiums until your child turns 25 or recovers from their disability, whichever comes first.
7. Waiver of Disability Premium
This rider will cancel your premiums if you become disabled for six consecutive months or more. That way, a loss of income will not cause a break in coverage.
FAQ – State Farm Life Insurance Review
Here are some frequently asked questions on state farm life insurance review;
Can you get State Farm life insurance if I have cancer?
Applicants who are currently receiving cancer treatment are generally not eligible for life insurance coverage through State Farm. However, applicants with a medical history of cancer will be eligible based on factors including, but not limited to, the type, stage, and grade of cancer, date of diagnosis, and date of completion of treatment.
Does State Farm life insurance pay for death by suicide?
The “competition period” during which a life insurance company would not cover death by suicide is usually two years but can vary by state. Details about your contestability can be found in your policy.
If you are thinking about committing suicide, help is available. Call any time of day for free and confidential support from the 988 Suicide and Crisis Helpline by dialing 988. Contact Lifeline if you are in crisis.
Do State Farm life insurance policies cover a drug overdose?
State laws regarding the payment of drug overdose death benefits bind life insurance companies. Contact the company or your State Farm agent for more information on the provisions of your policy.
How long do you have to claim State Farm insurance benefits?
Life insurance companies are subject to state laws regarding the length of time you have to claim insurance benefits. Contact State Farm or your State Farm agent for specific information about your policy.
Can you borrow from your State Farm life insurance policy?
You can borrow from the cash value accumulation in your permanent life insurance policy, such as State Farm’s whole life or universal life policies. However, if you do not pay that amount, the policy’s death benefit will be reduced.
Do State Farm life insurance policies pay dividends?
A State Farm whole life insurance policy offers the possibility of policy dividends. Dividends are not guaranteed.
What is the maximum amount of life insurance coverage available from State Farm?
Depending on the type of policy you select, the maximum amount of life insurance available from State Farm is $1 million. Check with your State Farm agent if you are interested in a higher face amount.
Conclusion – State Farm Life Insurance Review
State farm life insurance review 2023; State Farm stands out from many competitors because of its financial strength, giving life insurance buyers the confidence that the company will be able to meet its obligations for many years to come.