State Farm Life Insurance Review
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UPDATED: Apr 25, 2022
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State Farm Insurance is a large company which offers a variety of insurance products, including homeowners, automobile and personal umbrella coverage. Although auto insurance is the company’s primary business, State Farm’s life insurance division is one of the larger life insurers in the industry, offering a variety of types of life insurance policies and a number of financial planning and investment options.
State Farm History
State Farm began in 1922 as a small auto insurance firm created to sell affordable car insurance to farmers in Illinois. The company was founded as a mutual insurance company, one in which the policyholders own the company. Within a few years, the company’s intelligent management and careful growth had expanded it into a much larger market, and soon many Illinois residents besides farmers were buying insurance policies from this growing company. As the company expanded, banking and financial services as well as life and homeowner’s divisions were added. State Farm grew to become the largest automobile insurer in the United States, a position it still holds.
State Farm Insurance Today
While insurance is still its primary business, the company today offers a variety of financial planning and investment services which help people to manage the totality of their assets in a concerted manner. State Farm also involves itself in funding research, development, and testing through the State Farm Research and Development Center, located on the University of Illinois at Urbana-Champaign’s campus. This multi-million dollar facility offers young students the opportunity to work in “real life” environments and conduct pertinent research used by the insurance industry at large.
State Farm’s life insurance division, while not the largest part of the company, is managed in a very convenient and useful manner, which allows potential customers to easily understand the products and choose the right coverage for themselves and their families.
What type of Life Insurance does State Farm sell?
State Farm life insurance offers three main types of policies. Term life insurance is a policy which offers fixed premiums and a guaranteed death benefit. State Farm offers term life insurance policies in 5, 10, 20, and 30-year forms, and offers mortgage life policies of 15 to 30 years, as well as return of premium policies for 20 and 30-year periods. Term life, however, does not accrue significant value when compared to other types of policies.
Whole life, another type of policy offered by State Farm life insurance, offers cash value with long-term payouts. State Farm whole life insurance promises a guaranteed death benefit, cash value, lifetime coverage and level premiums, and dividends paid by the company for good financial performance. Whole life is a possible investment strategy for those looking for a low premium when young which will accumulate significant cash value over the life of the policy, and offer loan value for educational or other expenses. State Farm offers whole life in the forms of traditional whole life, life limited pay in terms of 10, 15, or 20 years, single premium life, and final expense benefits.
State Farm also offers universal life insurance policies, which offer the benefits of whole life’s long-term coverage with the flexibility of changing premiums and coverage amounts. Universal life accumulates cash value and can also be used as a part of your total financial planning package. Universal life is offered in both traditional and survivorship packages. Survivorship life insurance is carried on a married couple and does not pay benefits until both spouses are deceased. This allows a couple to provide a benefit for their children at a lower cost than if both partners bought a separate policy.
State Farm Insurance Reviews and Ratings
State Farm has a strong financial history and a powerful base of stability in today’s economy. State Farm was named the world’s largest property and casualty insurer by Fortune’s Global 500, and ranks 34th in the Fortune 500. State Farm has also received accolades in Canada, where it operates a large division and was named one of Toronto’s Top Employers for 2008.
State Farm consistently ranks high in surveys conducted by financial stability analysts, including Standard and Poor’s, which give State Farm an AA (Very Good) rating; Fitch Ratings, which gave the company an AA+ (Very High); and A. M. Best, which ranked State Farm A++ (Superior), the highest rating the company gives. The company has annual revenue of $61 billion, total assets of $104 billion, and total equity of $58 billion. Based in Bloomington, Illinois, the company employs over 68,000 people in offices across the nation. State Farm products are sold through a series of “dedicated” agents, or those which only handle State Farm products. You can receive a life insurance quote from any of these agents or through the company’s website.
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