State Farm life insurance review 2025

State Farm's top-rated customer service and solid record of paying dividends make it one of our choice picks for life insurance. And, If you're looking for a joint life policy or a return-of-premium rider, it's one of the few major carriers to offer either.

Term life insurance policies lack riders other companies offer for free, however, and you'll have to work with a State Farm agent to buy any policy.

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State Farm offers term, whole and universal life insurance in all states but Massachusetts and Rhode Island.

Term life insurance

Term life insurance is only valid for a set period before coverage expires, typically between 10 and 30 years. Rates are generally cheaper than whole or universal life insurance, which remains active as long as you pay premiums.

State Farm has three term life insurance policies:

• Select term life: Premiums stay level for the life of the policy. New applicants must be 75 or younger but you can renew up to age 95. Coverage starts at $100,000.
• Return of premium: State Farm is one of the few companies with a return of premium policy, which returns your premiums if the term expires and there's been no payout. Your rate remains the same for the entire term and coverage starts at $100,000.
• Instant Answer term life: If you are 50 or younger, you can get same-day approval for this $50,000 policy without a medical exam. It stays in place for up to 10 years or until you turn 50, whichever comes first.

Whole life insurance 

Whole life insurance remains in effect as long as you pay your premiums. It can build cash value that can be accessed during your lifetime, either as a withdrawal or as payment for monthly premiums. You can also borrow against the cash value of your policy.

State Farm's whole policy options include:

• Standard whole life: Premiums never go up and coverage remains in place so long as you keep paying. This policy builds a cash value and is eligible for dividends.
• Limited pay whole life: Allows you to pay off the policy's full cost over 10, 15 or 20 years, with death benefits starting at $100,000.
• Single premium whole life: You pay for the policy in one lump sum, with coverage starting at $15,000 for individuals up to age 80.
• Guaranteed issue final expense insurance: Intended for funeral expenses, this policy pays between $10,000 and $15,000 and is available to people ages 45 to 80 with no medical exam or health questions. Approval is guaranteed and the policy can go into effect immediately. (A similar policy for New Yorkers aged 50 to 75 has a $10,000 payout.)

State Farm is a mutual company and, while dividends aren't guaranteed, it paid out $725 million to policyholders in 2023. That's a significant increase from the $603 million paid in 2022.

Universal life insurance 

Like whole life insurance, universal life insurance remains in place your entire life and can build cash value. But the premiums, cash value growth and payouts are all flexible. 

• Standard universal life insurance: If you're 17 or younger or between 55 and 85, coverage starts at $25,000. If you're between 18 and 54, coverage starts at $50,000.
• Joint universal life insurance: Covers two people (typically spouses or business partners) and pays out after the first person's death. At State Farm, you can get a joint life policy if you're between 18 and 85, with coverage starting at $100,000.
• Survivorship life insurance: A joint policy that pays out when the second person dies. State Farm's survivorship policies are available from ages 18 to 90 (78 in California) and death benefits start at $250,000.

State Farm does offer several riders, but not as many as its competitors and none are free.

• Children's term: Insures children up to age 25 for up to $20,000, with the option to convert to a permanent policy on their 25th birthday.
• Estate preservation: Additional death benefit to help pay for tax planning issues in the first four years of your policy.
• Flexible care benefit: Similar to an accelerated death benefit, this endorsement makes a portion of your policy's death benefit available if you're chronically ill and receiving long-term care. (Not available in California or New York.)
• Guaranteed insurability: You can buy additional coverage at certain ages or life milestones without a medical exam. 
• Level term (additional insured): Provides level term life insurance to a second person, typically a spouse, until age 95.  
• Payor insurance: If you become disabled or die and have a minor on your policy, premiums are waived until you recover or the child turns 25.
• Select term: Provides term-life insurance until age 95, with premiums level for a 10-, 20- or 30-year team.  
• Waiver of premium: If you're unable to work because of illness or injury, your premiums are waived for as long as you are disabled.

State Farm is the nation's largest provider of home and auto insurance policies — its high customer satisfaction ratings have landed it on CNBC Select's list of the best car insurance companies. State Farm also offers:

• Renters insurance
• Condo insurance
• Business insurance
• Disability insurance
• Pet insurance (through Trupanion).

Bundling your State Farm life insurance with an auto, life or homeowners policy could save you up to 17%, according to the company.

State Farm is praised for its stellar customer satisfaction, landing in the top spot on J.D. Power's 2024 individual life insurance survey, which looks at customer feedback on price, communication, product offerings, interactions and statements.

It also received far fewer complaints than expected for a life insurance company its size, according to the National Association of Insurance Commissioners.

However, the Better Business Bureau gave State Farm a C- rating, citing more than 100 unresolved complaints.

In 2023, State Farm earned a financial strength rating of A++ from A.M. Best, the agency's highest grade and a good indicator of its ability to pay out benefits to policyholders.

Here's how State Farm stacks up against two leading life insurance providers.

State Farm vs. Guardian

Guardian and State Farm are closely matched, but State Farm comes out ahead on price: A 25-year-old woman with a $250,000 benefit and a 30-year term pays $19.14 a month on average, while Guardian's quote for the same policy is $27.

In addition, because it offers many other kinds of insurance, State Farm can offer a 17% bundling discount. Guardian doesn't have any multiline discount.

State Farm also reigns supreme with customer service, earning the number one spot on J.D. Power's survey of life insurance companies. Guardian scored several points below the industry average.

Guardian does have more built-in endorsements, though, including a waiver of premium rider that is an additional cost with State Farm.

State Farm vs. Amica

Amica tops State Farm for affordability: A healthy 25-year-old woman would pay $15.28 a month for a 30-year term policy that paid out $250,000, compared to $19.14 a month quoted by State Farm. 

If you're in good health, you may be eligible for a term or permanent life policy from Amica without a medical exam. No-exam coverage only applies to healthy individuals aged 50 and under that apply for certain coverage amounts (up to $1M for ages 40 and under, and up to $500k for ages 41-50). State Farm's only no-exam policies are smaller guaranteed issue plans meant to cover final expenses. Unlike Amica, however, State Farm offers universal life insurance, including hard-to-find survivorship policies.

Both companies offer auto and homeowners insurance, so policyholders are eligible for bundling discounts.

While you can get a sample quote online, you'll need to speak with a State Farm agent to buy a term or permanent life insurance policy. To find one near you, enter your address on the State Farm website or view the list of agents by state.

State Farm customer service can be reached at 800-782-8332 and you can pay your bill by calling 800-440-0998. For life insurance claims, call 877-292-0398.

You can also file claims online, as well as pay your premium, track claims, use life insurance calculators and read explainers. There is also a live chat feature.

If you're looking for an insurer with amazing customer service and a robust bundling discount, State Farm could be right for you.

If you prefer the hands-off approach and want to avoid dealing with an agent or taking a medical exam, you may want to consider another provider.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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