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State Farm Life Insurance Review 2024
Lead Writer | Finance, technology, science
Georgia Rose is a lead writer on the international team at NerdWallet. Her work has been featured in The Washington Post, The New York Times, The Independent and The Associated Press. Throughout her career, Georgia has written on a variety of subjects, including personal finance, government policy, science and technology. She enjoys researching complex topics and distilling the information for her readers. Before joining the international team, she wrote for the insurance vertical, specializing in life insurance.
Assistant Assigning Editor | Life insurance, disability insurance, health care
Katia Iervasi is an assistant assigning editor at NerdWallet. An insurance authority, she previously spent over six years covering insurance topics as a writer, where she loved untangling complicated topics and answering readers’ burning money questions. She holds a Bachelor of Arts in communication and has studied writing, fact-checking and editing with Poynter. Her writing and analysis has been featured in The Washington Post, Forbes, Yahoo, Entrepreneur, Best Company and FT Advisor. Originally from Sydney, Australia, Katia currently lives in New York City.
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
State Farm
5.0
on Nerdwallet
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
NAIC complaintsRatings 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. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Pros
- Drew fewer life insurance complaints to state regulators than expected for a company of its size.
- Ranked first in J.D. Power’s latest customer satisfaction study for life insurance.
- Broad range of term products, including instant answer life insurance.
Cons
- Life insurance policies not available in Massachusetts.
- Some restrictions for Android smartphones when accessing policy details through online portal.
on Nerdwallet
State Farm
5.0
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
NAIC complaintsRatings 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. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Pros
- Drew fewer life insurance complaints to state regulators than expected for a company of its size.
- Ranked first in J.D. Power’s latest customer satisfaction study for life insurance.
- Broad range of term products, including instant answer life insurance.
Cons
- Life insurance policies not available in Massachusetts.
- Some restrictions for Android smartphones when accessing policy details through online portal.
In our life insurance reviews, our editorial team considers 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 AM Best ratings to confirm an insurer’s long-term financial stability and ability to pay claims. For life insurance, NerdWallet typically recommends considering insurers with ratings of A- or higher. 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.
Dive deeper: Ratings methodology for life insurance
Started in 1922 by an Illinois farmer, State Farm is perhaps 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 new life insurance policies in Massachusetts.
» MORE: Compare life insurance quotes
State Farm life insurance rating
5.0
NerdWallet ratingState Farm life insurance earned 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 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. Available options include:
Select Term Life. 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.
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 are available to applicants 50 to 80 years old, (50 to 75 in New York). You can buy $10,000 to $15,000 in 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.
» MORE: Compare life insurance quotes
State Farm life insurance rates
Below are monthly rates for a 20-year, $500,000 term life insurance policy from State Farm. These are sample rates for a nonsmoking man and woman in excellent health — the final quote you’re offered will depend on factors like your age, health, lifestyle, occupation and driving record.
Age | Monthly rate - man | Monthly rate - woman |
|---|---|---|
20 | $26.09 | $20.44 |
30 | $28.29 | $22.19 |
40 | $40.04 | $33.49 |
50 | $90.94 | $67.44 |
60 | $259.24 | $173.99 |
Source: Quotacy. Rates reflect the super preferred class and were generated on 9/22/2023. | ||
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, according to a NerdWallet analysis of data from the National Association of Insurance Commissioners.
State Farm ranked first out of 22 companies in J.D. Power's 2023 U.S. Life Insurance Study for overall customer satisfaction
Where State Farm stands out
State Farm has ranked #1 in J.D. Power’s annual study on customer satisfaction in the life insurance industry for the past four years (2020 to 2023). The study looks at insurers’ performance in these five areas: communication, interaction, pricing, product offerings and statements. State Farm’s track record points to a positive reputation, and customers should expect a personalized experience when working with the company.
Where State Farm falls short
While State Farm operates nationwide, it doesn’t offer life insurance to residents of Massachusetts. Its Android app also has fewer features than the app for iOS users.
More about State Farm life insurance
You can search for a local State Farm agent on the company’s website and get a quote for certain term products online.
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:
Farm and ranch insurance.
Health insurance.
Boat insurance.
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.
Methodology
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 2020-2022. To assess how insurers compare with 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. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.