State Farm was established in 1922 as an automobile insurance company. Today, it is a mutual company with 85 million policies and accounts. Life insurance, home and renters insurance, and auto and specialty vehicle insurance are just a few of the products offered. Insurance for health, liability, and disability is also available. Trupanion, State Farm's pet insurance partner, has also been added to its portfolio. The company offers home and vehicle loans, checking and savings accounts, credit card options, and various other financial services, including investment and other services. It is located in Bloomington, Illinois.
Complaint Index
State Farm received far fewer customer complaints than was expected for a company this size. It received more complaints from customers than any other insurers that we looked at. The average NAIC complaint score of State Farm over three years was 0.0. This is how the index works. The NAIC monitors customer complaints and calculates a number that indicates how many complaints a company received about its size. A company with a complaint ratio greater than 1.0 indicates that it received more customer complaints than was expected for its size. A ratio lower than 1.0 means fewer complaints were received than expected. State Farm's score is 0.0, which is the highest possible score a company can achieve.
Third-Party Ratings
AM Best rates State Farm as extremely financially sound with an A++ rating. Only eight out of the 91 insurance providers we reviewed were awarded this high grade. State Farm was also awarded the highest possible mark in the U.S. 2021 U.S. Individual Life Insurance Study. The J.D. The J.D. Power research surveyed life insurance customers to determine their satisfaction with 21 large insurers based on communication, price, and product offerings. State Farm was ranked #1 with 822 points out of 1,000 possible, well above the industry average of 776.
Policies Available
State Farm offers a limited number of policies compared to its competitors. There are term life, whole life, final expense, burial, and universal policies. A return-of-premium policy is also available. This policy type is rare. If you are interested in variable universal or indexed universal insurance, State Farm may be a competitor. Protective and Nationwide made our top ten list of best life insurers.
Term Life Insurance
Unlike a permanent policy, a term life insurance policy only provides coverage for a specified period (e.g., 20 years). The premiums for a term life insurance policy are usually lower than permanent policies. It's also intended to pay your loved ones any obligations that may arise, such as paying off a mortgage or attending college.
Choose Term Life
The State Farm-level term policy, which means that your premium payment remains the same throughout the policy's life, can be dated at 10, 20, or 30 years. Coverage starts at $100,000. Your premiums will rise if you renew your coverage after the expiration of the term.
Premium Life Returns
If you live beyond the term, your premiums will be refunded by the return of premium (ROP). In this instance, there are only two terms: a 20-year or a 30-year term. While ROP premiums are usually higher than regular term insurance, State Farm's ROP term creates a cash value that you can borrow from.
Instant Answer Term
You can apply for term insurance and, if approved, purchase the policy in minutes. However, this will need to be done in an agent's office. You can only get $50,000 coverage, which is only valid until you turn 50 or 10 years after that. This makes it a good choice if you only need short-term coverage to cover modest expenses.
Things To Consider
You can convert select Term Life or Return of Premium Term life policies to permanent policies without the need for medical examinations or fees. Instant Answer Term Life policies can be converted into permanent life insurance anytime after they are issued, up to 10 years after their issue. Although death benefits (face value) are typically paid in one lump sum, other options may exist. All three policies provide a waiver for premiums for disability. The Return of Premium Term Life and Select Term Life policies offer children's term riders. A select term rider is also available with the Select Term Life policy.
Online tools can assist you in your search for life insurance. These tools can estimate Select Term and Return of Premium Life policies. All three types of policies provide a tax-free death benefit. The Return of Premium Term life policy provides a tax-deferred cash benefit that can be accessed throughout the policyholder's life. Multiline discounts are another feature of our insurance policies. You can receive a discount when you purchase more than one insurance policy, such as life and auto insurance.
