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How Does State Farm & Farmers Life Insurance Stack Up?

by Scott G on April 1, 2013 · 1 comment

State Farm vs Farmers vs Banner Life vs AIG vs MetLife 2013

How Does State Farm & Farmers Insurance Group Compare?

If you watched TV recently you’ve probably seen a Farmers or State Farm insurance commercial.  You know the ones, Farmers has the jingle, “We are Farmers! Bum ba-dum bum bum bum bum” and State Farm “Like a good neighbor, State Farm is there.”  These ads are catchy and hard to miss but how do their rates actually stack up to the competition?

Farmers Life and State Farm Are Often Really Expensive

From my experience, Farmers Insurance Group and State Farm are usually not too competitive with their life insurance rates and are often overpriced.  Frequently customers will have their home or auto insurance with one of these companies and to keep it simple will buy their life there policy as well.  This typically ends up costing them a lot more money vs. choosing a company that specializes in life insurance.

Here is an example:

Sample Quotes: $500,000 20 & 30 Year Term Policy

Let’s look a sample premium for; male born 5/15/1973, non-smoker excellent health class.  (These quotes are from the Farmers and State Farms website.)

 

 

As you can see above, there is a large disparity in rates for the same policy from one company to the next, as much as 100%!   This is why is it so important to shop around when purchasing life insurance to assure you are getting the best deal.

How About Their Financial Strength?

The benchmark to evaluate an insurance company’s financial strength is by checking their A.M. Best rating.  The rating of “A” or better means the company has excellent financial strength.  So how does Farmers and State Farm fair? 

A.M. Best Financial Ratings

Farmers Insurance Group            “A”

State Farm                                   “A++”

Banner Life                                  “A+”

SBLI                                             “A+”

AIG                                               “A”

MetLife                                         “A+”

As you can see State Farm has an excellent financial rating.  I don’t know if paying nearly 40% more for the same policy is worth it though, especially when the competition also has excellent ratings. 

Physical Location

One of the advantages of working with a Farmers or State Farm agent is the interaction you get with the agent.  These agents have a brick and mortar location and are often in the same office for decades.  However, office space is expensive and comes at a cost which means higher rates for the customer.

Bottom Line

Make sure you compare rates when shopping for life insurance and do not just accept the first quote you receive.   Just by shopping around or working with an experienced broker, you may be able to purchase a lot more life protection for your family and at a much lower cost.

See what rates you qualify for, enter your zip-code below and compare!

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*Rates as of 4/01/2013. The information in this post is for informational purposes only and is not a guarantee of rates and insurability.  Rates and eligibly are subject to the underwriting guidelines of the insurance companies and state in which you live.

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