State Farm is one of the most recognizable names in the insurance industry. They have been offering insurance coverage since 1922.
They are mostly known for their auto and home insurance, however, they do provide life insurance as well.
It may be easy to purchase life insurance with State Farm, especially if you already have a local agent that you use, but there are several reasons why they may not be the best life insurance company for you.
This is what I’ll explore in this review of State Farm.
What We Like About State Farm Insurance
State Farm has always stood out as an Insurance company that many people enjoy working with, and for. Their name has been recognizable for years, and has stood the test of time for good reason. With over 19,000 agents across the company, and a commitment to local community aid there are a few standout factors to like about State Farm Insurance.
A lot of life insurance companies tend to have more negative reviews than normal companies because customers are prone to write about bad experiences vs good experiences.
However, with State Farm that ratio is opposite. J.D. Power has State Farm ranked number one in the customer satisfaction category and there are numerous glowing reviews of how State Farm handles claims and issues their customers have.
It is refreshing to see a life insurance company put an emphasis on treating the client right. There are some life insurance carriers that will just approve your application and then you’ll either never hear from them again or you have trouble getting a hold of the company.
Throughout their entire history, State Farm has always been a highly rated carrier from the industries rankers, garnering a A++ from A.M Best, and a Aa1 from Moody’s.
State Farm has always paid great dividends, totaling $574M in 2017 going to policyholders. And they had $5.3B in premium income for 2017.
All of this means that if you have a policy with State Farm you will never have to worry about them not paying a claim. Which is a reassuring thought for the client.
Is There a Downside to State Farm?
We’ve talked about some things that make State Farm a standard in the insurance industry, but we want to let our readers know that there might be a few things to look at for as you look for life insurance coverage through State Farm.
While we rarely will tell you to never buy a policy with a certain insurer, take some of these things in account after you’ve talked with a local State Farm agent before you sign on the dotted line.
The first reason I’m not high on State Farm is simply because life insurance with them is not cheap. For example, a 35-year-old woman would pay around $44 per month for a $500,000 30 year term with State Farm, while there are numerous companies offering the same policy for around 20-30% less than what State Farm charges.
One of the most important factors that applicants look at when they are going through the life insurance process is costs. Nobody wants to pay more for their life insurance coverage than they have to.
Plenty of different factors have an effect on what kinds of rates you might see; these also vary widely from insurer to insurer. While State Farm typically isn’t the lowest option, there are some lifestyle changes that you can make to get the most affordable life insurance plan for your family.
The first thing to do is focus on your health. You can do this by starting a diet, getting regular exercise, and eliminating any tobacco usage. In fact, quitting smoking could cut your premiums in half, which can save you hundreds of dollars every year for your coverage.
When working with State Farm you will only get quotes from State Farm.
I always recommend comparing several top companies when shopping for life insurance, and State Farm agents only represent State Farm and no other companies. When you choose an independent life insurance agency (which is what we are), we help you compare pricing from among 30 top life insurance carriers, helping you find the best price. With State Farm, you won’t have the ability to compare various quotes.
Unlike traditional insurance agents, independent insurance agents don’t represent one single company like State Farm.
Instead, our agents are licensed to sell policies from 30 highly-rated companies across the United States, which means that we can connect you with the best policy to fit your needs.
The underwriting practices at State Farm are known for being conservative. What does this mean? It means that if you have high blood pressure, high cholesterol, or perhaps a pre-existing condition – like diabetes – you may be charged very high rates, or not get approved at all.
In addition, if you are considered high risk and have a more serious pre-existing condition, you are likely to get denied.
Because the vast majority of applicants have high blood pressure or high cholesterol, State Farm is going to be too expensive for most consumers. Even though you’re in good health, aside from high cholesterol, State Farm is going to give you much higher rates because of your higher risk.
When you work with a high-risk agency such as ours, we can match up your current health condition with the right life insurance company. Each life insurance carrier has different guidelines for what they will or won’t approve, and we know which companies to use for what health situation, age, and coverage amount.
Our independent agents are the best way to find a life insurance company who may view your health more favorably. Working with one of our agents could save you weeks of calling different companies and answering the same questions over and over.
Perhaps you have cancer and want to know if you can get life insurance if you have cancer or other serious health conditions. If so, we can answer your questions and help you get the coverage you deserve.
Don’t make the mistake of not having the appropriate coverage in place for your family. They would be left with a massive amount of debt, which can make an already difficult situation of losing a loved one a thousand times more difficult. Regardless of which insurance company that you choose, it’s vital that you purchase enough insurance coverage for your family.
Our overall philosophy is that you should shop for the best rates among highly rated companies. We don’t believe that State Farm can do that for you and therefore we don’t recommend you buy term life insurance with them. We do recommend that you use our quote form at the top of this page to get started with shopping for life insurance or call us at 888-552-6159 and we can answer your questions and help you find the right coverage for you.