Last Updated: February 9th, 2026
State Farm is a financially strong life insurance company rated A+ by AM Best with low complaint ratios. They offer term, whole, universal, and final expense policies. The biggest drawbacks are higher-than-average premiums, captive agents who only sell State Farm products, and strict underwriting for applicants with health issues. Comparing quotes from multiple carriers can often save you significantly on similar coverage.
State Farm is one of the most recognized names in insurance. They’ve been around since 1922, and most people know them for auto and home coverage. But they also sell life insurance, including term, whole life, universal, and final expense policies.
With over $1.2 trillion of individual life insurance in force, State Farm is one of the largest life insurers in the country. They ranked #1 in J.D. Power’s customer satisfaction study for five straight years from 2019 through 2024.
So is State Farm a good choice for life insurance? The short answer: they’re a solid company with real strengths, but they’re not the best fit for everyone. In this review, we’ll break down what State Farm offers, where they shine, and where you might find better options.
State Farm Life Insurance Products
State Farm offers four main types of life insurance.
Term life insurance provides coverage for a set period, typically 10, 20, or 30 years. It’s the most affordable option and works well for families who need coverage during their working years. State Farm offers Select Term policies with issue ages from 18 to 75 for 10-year terms, 18 to 65 for 20-year terms, and 18 to 45 for 30-year terms.
Whole life insurance covers you for your entire life and builds cash value over time. State Farm’s whole life policies pay dividends to policyholders. In 2024, they paid out $817 million in dividends. They offer single-premium and limited-pay options as well.
Universal life insurance combines a death benefit with flexible premiums. State Farm offers joint universal life and survivorship universal life options, which can be useful for estate planning.
Final expense insurance is a guaranteed issue whole life policy designed to cover burial and end-of-life costs. State Farm’s final expense coverage goes up to $10,000 and doesn’t require a medical exam. There is a two-year waiting period before the full death benefit kicks in.
State Farm Financial Strength Ratings
One of State Farm’s biggest selling points is financial stability. Here’s where they stand with the major rating agencies.
| Rating Agency | Rating | What It Means |
|---|---|---|
| AM Best | A+ (Superior) | Second-highest rating category |
| S&P | AA | Very strong financial security |
| Fitch | AA | Very strong capacity to pay claims |
| Moody’s | Aa1 | High quality, very low credit risk |
It’s worth noting that AM Best downgraded State Farm from A++ to A+ in November 2025. This was driven by losses in their auto and homeowners insurance divisions, not the life insurance side. State Farm’s life insurance operation has been profitable for each of the past five years and maintains the strongest level of risk-adjusted capitalization according to AM Best.
Bottom line: if you buy a policy from State Farm, you don’t need to worry about them being unable to pay your claim. They’re one of the most financially secure life insurers in the country.
State Farm Customer Satisfaction and Complaints
State Farm has a strong track record with customers. They ranked #1 in J.D. Power’s U.S. Individual Life Insurance Study for five consecutive years from 2019 through 2024. In 2025, they slipped to #2 behind Mutual of Omaha but still scored well above the industry average.
Their NAIC complaint index is also impressive. According to 2024 data from the National Association of Insurance Commissioners, State Farm received only about one-third of the complaints expected for a company of its size. That’s significantly better than most life insurance companies.
The BBB gives State Farm an A+ rating as well.
Available Riders
State Farm offers several riders you can add to your policy for extra protection.
- Waiver of premium for disability covers your premiums if you become disabled and can’t work
- Accidental death or dismemberment rider provides an additional benefit if you die or are seriously injured in an accident
- Long-term care rider allows you to access a portion of your death benefit for long-term care expenses
- Flexible care benefit rider provides coverage for nursing home or home health care needs
- Guaranteed insurability option lets you buy more coverage at specific ages without additional medical underwriting
State Farm Life Insurance: The Pros
Financial strength you can count on. With an A+ from AM Best and top marks from S&P, Fitch, and Moody’s, State Farm is one of the most financially stable life insurers available. Your beneficiaries will get paid.
Top-tier customer satisfaction. Five consecutive years at #1 in J.D. Power’s study speaks for itself. Low NAIC complaint ratios confirm that most policyholders have a positive experience.
Wide product selection. Term, whole, universal, and final expense. State Farm covers the major categories. Most buyers can find a policy type that fits their needs.
Bundling convenience. If you already use State Farm for auto or home insurance, managing all your policies in one place can simplify things. You may also qualify for multi-policy discounts.
Dividend-paying whole life. Eligible whole life policyholders share in company profits through dividends.
State Farm Life Insurance: The Cons
Higher premiums. This is the biggest issue. State Farm’s life insurance rates are consistently higher than what you’ll find from many other highly rated carriers. For the same coverage amount and term length, you could often pay 20-30% less with another company.
Captive agents only. State Farm agents only sell State Farm products. They can’t show you quotes from other carriers or help you comparison shop. This is a real limitation. When you work with an independent agency, you can compare pricing from dozens of top-rated companies side by side to find the best rate for your situation.
Strict underwriting. State Farm’s underwriting is known for being conservative. If you have common health conditions like high blood pressure, high cholesterol, or a history of diabetes, you may face higher rates or even a decline. Many other carriers are more flexible with health conditions and can offer better rate classes for the same health profile.
Limited final expense options. State Farm’s final expense policy is guaranteed issue only with a two-year waiting period and a maximum benefit of $10,000. If you’re a senior shopping for final expense coverage, there are carriers offering immediate coverage from day one with higher benefit amounts and lower premiums.
Not available everywhere. State Farm Life Insurance Company is not licensed in Massachusetts. An affiliate company, State Farm Life and Accident Assurance Company, handles policies in New York and Wisconsin.
Who Is State Farm Life Insurance Best For?
State Farm works well for people who already have an auto or home policy with them and want the convenience of keeping everything under one roof. If you’re young, healthy, and not especially price-sensitive, State Farm’s term life options are solid.
That said, if you’re focused on getting the best rate, have any health conditions, or want to compare options across multiple carriers, you’ll likely benefit from working with an independent life insurance agency. Independent agents aren’t tied to one company. They can shop your application across 30 or more highly rated insurers to find the best price and approval odds for your specific situation.
State Farm Contact Information
- Phone: 800-782-8332 (800-STATE-FARM)
- Headquarters: Bloomington, Illinois
- Website: statefarm.com
Frequently Asked Questions
Is State Farm good for life insurance?
State Farm is a financially strong company with excellent customer satisfaction ratings. They’re a safe choice if you value brand recognition and convenience. The trade-off is that their rates tend to run higher than many other top-rated carriers. If price matters to you, compare quotes from multiple companies before deciding.
Does State Farm require a medical exam for life insurance?
For most policies, yes. State Farm generally requires a paramedical exam as part of the application process. The main exception is their guaranteed issue final expense policy, which has no medical exam or health questions. If you want coverage without a medical exam, there are carriers that offer no medical exam life insurance with more options and competitive rates.
How much does State Farm life insurance cost?
Rates vary based on your age, health, coverage amount, and policy type. State Farm doesn’t publish rate tables, and quotes require working with a State Farm agent. In general, their premiums tend to be higher than the industry average for comparable coverage.
Does State Farm offer final expense insurance?
Yes, but their final expense policy is limited. It’s a guaranteed issue whole life policy with a maximum death benefit of $10,000 and a two-year waiting period before the full benefit applies. If you pass away during the first two years, beneficiaries receive a refund of premiums plus interest rather than the full death benefit.
Can I buy State Farm life insurance online?
You can get a quote online for Select Term and Guaranteed Issue Final Expense policies through State Farm’s website. All other products require you to work with a local State Farm agent. Even for policies quoted online, you’ll need to complete the purchase through an agent.
Why should I compare life insurance quotes from multiple companies?
Every life insurance carrier has different underwriting guidelines, rate structures, and product features. A company that offers the best rate for a healthy 30-year-old may not be the best option for a 55-year-old with high blood pressure. Comparing quotes from multiple carriers helps you find the right coverage at the best price for your specific situation.
Key Takeaways
- State Farm is a financially strong life insurance company with an A+ rating from AM Best and top marks from S&P, Fitch, and Moody’s.
- They ranked #1 in J.D. Power’s customer satisfaction study for five straight years (2019-2024) and have very low NAIC complaint ratios.
- The biggest downsides are higher premiums, captive agents who only sell State Farm, and strict underwriting for applicants with health issues.
- Their final expense policy is limited to $10,000 with a two-year waiting period, which may not meet the needs of many seniors.
- Comparing quotes from multiple carriers through an independent agency can help you find better rates and more flexible underwriting.
Looking for the best life insurance rate for your situation? We compare quotes from 30+ top-rated carriers to find you the right coverage at the right price. Get a free quote or call us at 800-712-8519.
