State Farm Life Insurance Review 2022

Dec 21, 2021

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State Farm Life Insurance
NerdWallet rating 

Bottom line: With strong customer satisfaction and plenty of policy options, State Farm is a good choice for many life insurance shoppers.

Policies offered: Term, permanent & no-exam.

Financial strength: Exceptional.

Complaints: Fewer than expected.

Buy online? No.

In our life insurance reviews, our editorial team considers both the customer and the insurer. These are some of the factors we take into account:

Policies offered. There are many types of life insurance on the market, and they fall into three key categories:

  • Term life insurance offers temporary coverage and a guaranteed payout if the policyholder dies during the term.

  • Permanent life insurance typically lasts a lifetime and builds cash value that can be borrowed against in the future.

  • No-exam life insurance issues coverage without the need for a medical exam.

Financial strength. We use A.M. Best ratings to confirm an insurer’s long-term financial stability and ability to pay claims. NerdWallet does not recommend companies with a rating lower than a B. Here’s the breakdown:

  • Exceptional: A+, A++

  • Strong: A, A-

  • Moderate: B+, B

Complaints. These ratings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. The best life insurance companies have fewer than the expected number of complaints.

Buy online. This indicates whether an insurer allows you to apply for and buy a policy completely online.

Started in 1922 by an Illinois farmer, State Farm is best known for its home and auto insurance. But the company also sells a broad range of life insurance products, primarily through local agents. Although its reach is wide, the company doesn't issue life insurance in Massachusetts.

Why you can trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure the content on our site is accurate and fair, so you can make financial decisions with confidence and choose the products that work best for you. Here is a list of our partners and here’s how we make money.

State Farm life insurance

4.5

NerdWallet rating 

State Farm life insurance earned 4.5 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, complaint data from the National Association of Insurance Commissioners and financial strength ratings.

Based on these ratings, State Farm is among NerdWallet’s Best Life Insurance Companies.

State Farm life insurance pros and cons

Pros

Cons

Drew fewer life insurance complaints to state regulators than expected for a company of its size.

Life insurance policies not available in Massachusetts.

Ranked first in J.D. Power’s 2021 customer satisfaction study for life insurance.

Some restrictions for Android smartphones when accessing policy details through online portal.

Broad range of term products, including instant answer life insurance.

State Farm life insurance policies

State Farm sells term life, whole life and universal life insurance policies to individuals. All of State Farm’s term products can be converted to permanent coverage, regardless of changes to your health. Availability and policy details vary among states.

Term life insurance

Select Term Life Insurance: Policies are available in 10-, 20- or 30-year terms, depending on your age, and renewable up to 95. Coverage amounts start at $100,000.

Instant Answer Term Life: $50,000 of coverage is available for people between 16 and 45, lasting until age 50 or 10 years after the policy is issued, whichever is later. State Farm’s instant answer life insurance doesn’t require a medical exam. However, you have to complete a health questionnaire, and your answers may disqualify you from coverage.

Return of Premium Term Life: Coverage starts at $100,000 and is available in 20- or 30-year terms, though you can renew the policy at increased rates. If you pay premiums faithfully, outlive your term and don’t renew, you’ll get your money back.

Permanent life insurance

Whole life insurance policies include standard whole life, limited-pay whole life, single-premium whole life and final expense. The company’s standard whole life policy has level premiums. Its limited-pay and single-premium policies allow you to front-load the cost of the insurance so you don't need to pay during retirement. Final expense policies, available to applicants 50 to 80 years old (50 to 75 in New York), come with $10,000 of coverage.

Universal life insurance options include survivorship and joint universal policies. These types of policies cover two individuals, typically spouses. The company’s standard universal policy offers flexible coverage and payment options.

State Farm customer complaints and satisfaction

Over three years, State Farm has drawn fewer complaints to state regulators than expected for a company of its size for life insurance, according to a NerdWallet analysis of data from the National Association of Insurance Commissioners.

State Farm ranked first out of 21 companies in J.D. Power's 2021 U.S. Life Insurance Study for overall customer satisfaction

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More about State Farm life insurance

You can search for a local State Farm agent on the company’s website and apply for certain term products online. All policies are eligible for dividends, but universal and term products aren't expected to earn them.

The online portal allows you to view your policy, pay premiums and see lab results. However, it doesn’t support document downloads for Android smartphones.

Other insurance products from State Farm include:

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Life insurance buying guide

Before you start comparing companies, choose the type of life insurance you want, such as term or whole life. Decide which life insurance riders, if any, you want the policy to include. Calculate how much life insurance you need and how long you want the coverage to last. Check that the insurers you’re considering offer the coverage you’re looking for.

When comparing rates, be sure the quotes are for the same amount of coverage over the same period of time. It’s also important to make sure the policy’s medical requirements match your needs. For example, if you want to skip the life insurance medical exam but don’t mind answering health questions, confirm that the application process for each policy you're comparing aligns with that.

Price may not be the biggest driver behind your decision to buy. Look at the number of consumer complaints each company receives, as high numbers can be a red flag about the quality of service.

For more guidance, see our life insurance buying guide.

Life insurance ratings methodology

NerdWallet’s life insurance ratings are based on consumer experience, complaint index scores from the National Association of Insurance Commissioners for individual life insurance, and weighted averages of financial strength ratings, which indicate a company’s ability to pay future claims. Within the consumer experience category, we consider ease of communication and website transparency, which looks at the depth of policy details available online. To calculate each insurer’s rating, we adjusted the scores to a curved 5-point scale.

These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.

Insurer complaints methodology

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2018-2020. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

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