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State Farm Life Insurance Review 2013

by Scott G on December 8, 2012

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State Farm Review 2014

We’ll begin by saying that State Farm is a great property and casualty company.  A testament to this is the over 16k agent offices around the country.  I actually have a friend who owns his own State Farm agency and have spoken to hundreds and hundreds of clients over the years that have policies with State Farm.  They all acknowledge that State Farm is a great company and rarely do you ever hear anything negative.

How about life insurance rates?

With that being said, it’s known that the life insurance line of State Farm is rarely competitive.  You can see a comparison here State Farm agents even limit the marketing of their life insurance products because their rates are too high compared to everyone else.  What a lot of the agents do, is upsell the life insurance products after you have a purchased a home or auto policy since you already have established a relationship and hope that you don’t shop around.

Another downside to State Farm’s life insurance is their underwriting.  I have spoken to many clients and even State Farm agents who acknowledge the underwriting guidelines are very tight.  Someone with diabetes or heart disease for example, may get declined or pay a very high premium with State Farm, while with another company that same person can get approved and a normal rate.

State Farm’s Number of Policies and Accounts by the end of 2010:

-42.4 million Auto

-27.4 million Fire

-7.9 million Life

1.1 million Health

Good Things about State Farm in 2014

I have spoken to State Farm agents and customers recently, who say the rates are getting more competitive, especially with the bundling of home, auto and life policies. Also, people tell me they feel more comfortable having all their insurance policies in one place.  And some feel more comfortable being able to walk in and see the agent face to face.  Another plus for State Farm, is they have the highest possible rating by A.M. Best at A ++.  However, I don’t know if paying much higher prices are worth those conveniences.  I have had many clients who had to make that decision.


While State Farm is an excellent company for property and casualty insurance, their life insurance division is still not up to par with the rest of the major life insurance companies in 2014.  The bundling has helped State Farm become more competitive, however, with overly strict underwriting guidelines and high life insurance prices, it is advisable you compare rates with other top companies before choosing a life policy with State Farm.

I also wrote an article showing the price difference for a $500k level term policy comparing State Farm and the other top companies.  The article can be seen here.

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