State Farm Term Life Insurance Review
When you think of State Farm, you probably think of the catchy slogan “like a good neighbor, State Farm is there” or those funny commercials featuring Aaron Rodgers. The fact is that State Farm is one of the most respected names in the industry when it comes to most personal insurance coverage. But we wanted to compare how State Farm’s rates for term life insurance compare to other companies out there. If you are considering buying life insurance through your local State Farm agent, read this blog first. We are going to take a look at how State Farm’s term life insurance stacks up to the competition.
Facts About State Farm
State Farm has been around since 1922. The company offers a wide range of insurance coverage such as life, health, home, auto, disability, long term care and more. In fact, the company reported at the end of 2014 that it insures more cars and homes than any other insurer in the US. State Farm is rated AA rated by Standard and Poor’s, which is the second highest rating available. If you have any of your coverage with State Farm, you can take comfort in knowing that the company is financially sound.
State Farm’s Term Life Insurance Products
State Farm offers 10, 20 and 30 year term life insurance options. Premiums are guaranteed for the period selected and renewable to age 95. The company’s term policies can be converted to permanent coverage. You can add a children’s term rider, Select Term rider and a waiver of premium rider for disability to term policies.
State Farm’s Term Life Rates Compared to Other Companies
We compared State Farm’s term life insurance rates to a few other companies in the industry. We found that State Farm’s rates are substantially higher for term life insurance than many of the other companies out there. Here are some sample rates for male and female nonsmoker applicants who qualify for the highest health class rating with each company listed. Rates as of 4/1/2015.
35 year old male – 20 year policy
| Company | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|
| State Farm | $235.00 | $370.00 | $590.00 |
| Protective Life | $168.63 | $260.05 | $441.78 |
| American General | $164.00 | $259.00 | $444.00 |
| Met Life | $164.00 | $259.00 | $449.00 |
40 year old male – 20 year policy
| Company | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|
| State Farm | $345.00 | $530.00 | $910.00 |
| Protective Life | $215.68 | $348.28 | $626.07 |
| American General | $211.50 | $354.00 | $644.00 |
| Met Life | $219.00 | $369.00 | $649.00 |
35 year old female – 20 year policy
| Company | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|
| State Farm | $232.50 | $370.00 | $650.00 |
| Protective Life | $148.84 | $225.77 | $378.73 |
| American General | $149.00 | $229.00 | $394.00 |
| Met Life | $146.50 | $224.00 | $379.00 |
40 year old female – 20 year policy
| Company | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|
| State Farm | $292.50 | $475.00 | $870.00 |
| Protective Life | $185.97 | $304.17 | $529.08 |
| American General | $199.00 | $329.00 | $594.00 |
| Met Life | $186.50 | $304.00 | $519.00 |
As you can see, State Farm’s rates are higher by more than 40% in some cases compared to similar products from other carriers. When you add up that difference over the course of a 20 year period, it is clear that simply shopping around for the best rate could save you thousands over the life of your policy.
Working With a State Farm Agent
When you choose to work with a State Farm agent, you will only have access to State Farm products. Why limit yourself to only one choice? It makes more sense to work with an independent agent who can shop your case to multiple insurance companies. This is especially important when shopping for life insurance since there are so many underwriting variables that can affect rates. Working with a State Farm agent does offer the convenience of having all of your insurance coverage such as home, auto and life insurance “under one roof” so to speak. State Farm does offer a discount on your auto or home coverage if you bundle those with a life insurance policy. With that said, it is most likely that you would be better off getting your life insurance elsewhere because of State Farm’s higher life insurance rates.
State Farm’s Underwriting
State Farm’s term coverage is priced higher than many other companies in the market, even if you are in excellent health and can qualify for the company’s best health rating. If you have moderate or serious health issues, State Farm usually won’t offer competitive rates. Unlike other companies out there that are willing to underwrite applicants with moderate to major health issues, State Farm chooses not to be competitive in this area.
State Farm Term Policy Duration Limitations
As we mentioned earlier in the review, State Farm offers term coverage for 10, 20 or 30 year periods. This can be a bit more restrictive than some of the other companies out there that also offer 15 and 25 year coverage options in addition to the standard 10, 20 and 30 year periods, American General, a company mentioned above, actually allows you to pick an a specific period of coverage between 15 and 30 years to further customize coverage.
Final Thoughts on Our State Farm Term Life Insurance Review
This review was in no way meant to say anything negative about State Farm as a company. State Farm is a well-respected, financially sound company that has an excellent track record of customer service. The review was simply meant to show that State Farm’s term life insurance rates are quite a bit higher than the rates of many other insurance companies in the industry. If you shop your coverage, you could save thousands of dollars over the life of your policy. If you are considering buying term life coverage from State Farm or if you are an existing State Farm life term life insurance insurance policyholder, give us a call at 888-687-9444 or email us at info@archstoneagency.com and let us show you how much you can save by shopping around.
About Us
Archstone Insurance Services, LLC is an independent agency that shops over 40 of the top life insurance carriers to provide huge savings on life insurance coverage for our clients. We are happy to answer any questions you might have about any of the insurance products we offer, your planning needs or your existing coverage. Feel free to call us directly at (888) 687-9444 or email us at info@archstoneagency.com.
