State Farm sells four types of life insurance. These include term, whole life, universal life and guaranteed issue policies. Coverage ranges from $10,000 for guaranteed issue final expense policies to $10 million for term and permanent policies, based on age and underwriting.
State Farm Life Insurance Review 2026: Rates, Pros & Cons
State Farm suits buyers who want agent-led service and multiple permanent coverage structures. Its term life rates are 10% to 15% above the national average. A healthy 40-year-old man pays $66 per month for $500,000 of 20-year coverage, compared to $46 at the cheapest competitors in our analysis. State Farm ranked second out of 22 insurers in J.D. Power's 2025 life insurance satisfaction study. It holds an A+ (Superior) AM Best rating and a NAIC complaint index of 0.38, well below the industry average of 1.0.
Read our comprehensive State Farm life insurance review to decide if it's the right insurer for your coverage needs.
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Updated: September 13, 2026
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At a Glance: State Farm Life Insurance
State Farm
MoneyGeek Rating
3.6/ 5
3.3/5Affordability
4/5Customer Experience
3.9/5Coverage
Average Monthly Cost
$53 (F), $66 (M)Average costs for 40-year-old nonsmokers with $500,000 20-year term life insurance policy.Max Coverage
$10 million
State Farm Life Insurance Products
Term Life Insurance Options
Term life insurance provides coverage for a set period and is designed to be affordable during your working years. These policies can help cover temporary financial needs like replacing income or paying off a mortgage. Renewal and conversion options vary by policy and state.
Select Term LifeProvides 10-, 20- or 30-year level premium periods and can be renewed up to age 95 at higher rates, with coverage up to $10 million. A medical exam is required for all applicants.
- Return of Premium Term Life
Refunds base premiums if the insured outlives the initial term. Available for 20- or 30-year terms.
- Instant Answer Term
Offers up to $50,000 in coverage with in-office approval and no medical exam for eligible applicants.
Whole Life Insurance Options
State Farm's whole life insurance lineup includes three payment structures: standard whole life with lifetime premiums, limited pay whole life with premiums paid over 10, 15 or 20 years, and single premium whole life funded with one upfront payment. All three build cash value, a savings component that grows tax-deferred and can be borrowed against, and provide permanent death benefits.
Whole LifeProvides lifetime coverage with level premiums and potential dividends based on company performance.
- Limited Pay Whole Life
Limited pay life insurance provides permanent coverage with premiums concentrated into a 10-, 15- or 20-year payment period rather than spread across the life of the policy.
- Single Premium Whole Life
Uses one upfront payment to secure lifetime coverage and immediate cash value accumulation.
- Guaranteed Issue Final Expense
Provides small coverage amounts for burial and funeral costs with no medical underwriting, usually for ages 45 to 80.
- Guaranteed Issue Whole Life
Available only in New York, offering limited coverage amounts with no medical questions.
Universal Life Insurance Options
State Farm's universal life policies allow flexible premium payments and adjustable death benefits within policy limits. Two joint structures are available: survivorship universal life, which pays after the second insured dies and is often used for estate planning, and joint universal life, which pays after the first death and is commonly used for income replacement or business succession.
Universal LifeAllows flexible premium payments while building tax-deferred cash value.
- Survivorship Universal Life
Covers two people and pays a death benefit after the second insured passes away, often used for estate planning.
- Joint Universal Life
Covers two people and pays a benefit after the first death, often used for income replacement or business needs.
State Farm's Life Insurance Riders
State Farm's rider lineup addresses three common policyholder needs: family coverage, disability protection and long-term care planning. Its most notable option is the Flexible Care Benefit Rider, which allows you to access a portion of your death benefit early to help cover long-term care expenses. This can provide long-term care support without the cost of a separate policy, but it's not available in California or New York.
Rider | Description |
|---|---|
Children's Term Rider | Covers eligible children up to age 25 with up to $20,000 per child under one rider |
Select Term Rider | Provides life insurance coverage to age 95 with level premiums for a 10-, 20- or 30-year period. Minimum coverage is $100,000. Available on both the primary insured and an additional insured, and can be converted to a permanent policy. |
Waiver of Premium for Disability | Waives premiums during qualifying disability periods |
Flexible Care Benefit Rider | Provides access to a portion of the death benefit for long-term care expenses; not available in California or New York |
Guaranteed Insurability Option | Allows purchase of additional coverage on specific dates or after qualifying life events, such as marriage, birth of a child or divorce, without a new medical exam |
Estate Preservation Rider | Provides supplementary death benefit during a policy's first four years; available for applicants ages 18 to 90 (18 to 78 in California) |
Payor Insurance Rider | Applies to children's life insurance policies; waives premiums for a specified period if the premium-paying adult dies or becomes disabled |
*Rider availability varies by state and policy type. Contact your agent for options in your area.
State Farm Life Insurance Cost
State Farm's life insurance premiums reflect its financial strength and nationwide agent network, and that service comes at a price. Across both term and guaranteed issue products, you'll pay more than you would with lower-cost competitors.
State Farm Term Life Insurance Cost
State Farm's term life insurance rates are higher than the national average across all coverage levels we reviewed. For a $500,000 policy, 40-year-olds pay $7 more per month, $1,680 more over a 20-year term. Those extra dollars buy an A+ A.M. Best rating, a 0.38 NAIC complaint index and local agent access. If cost is the priority, Banner Life and Transamerica charge $20 less per month for the same coverage.
$100,000 | $20 | +$4 (+28%) | $23 | +$4 (+21%) |
$250,000 | $33 | +$4 (+16%) | $39 | +$4 (+12%) |
$500,000 | $53 | +$7 (+15%) | $66 | +$7 (+12%) |
$750,000 | $74 | +$7 (+11%) | $93 | +$8 (+9%) |
$1,000,000 | $95 | +$9 (+10%) | $120 | +$11 (+10%) |
* Rates shown are for 40-year-old nonsmokers in average health with a 20-year term policy.
State Farm Guaranteed Issue Life Insurance Cost
Guaranteed issue whole life costs more per dollar of coverage because State Farm accepts all applicants regardless of health with no medical exam or underwriting. A 65-year-old woman pays $65 per month for $10,000 in coverage, which is 8% above the national average for this product type. Guaranteed issue policies are best suited for final expense coverage when other options aren't available due to health conditions.
$10,000 | $65 | $5 (+8%) | $81 | $1 (+1%) |
$15,000 | $94 | $4 (+5%) | $118 | $2 (+2%) |
*Rates shown are for 65-year-old nonsmokers.
How to Get State Farm Life Insurance
Buying life insurance from State Farm follows an agent-led process designed around personal consultation.
- 1Contact a local State Farm agent
Start by connecting with a local State Farm agent who reviews available policies in your state. Not all products are offered in every state. California and New York have restrictions on several riders and permanent policy types.
- 2Discuss coverage goals and policy options
The agent reviews your financial goals, family needs and budget to narrow policy choices.
- 3Complete an application and health questionnaire
You provide personal, medical and lifestyle information required for underwriting.
- 4Complete underwriting requirements, if applicable
Some policies require medical exams or additional documentation before approval.
- 5Review policy approval and finalize coverage
Once approved, the policyholder reviews policy details, selects riders and activates coverage. The full process from initial contact to policy activation takes one to four weeks, based on whether a medical exam is required. Applicants who qualify for Instant Answer Term can receive same-day in-office approval without an exam for coverage up to $50,000.
State Farm Claims Process
To file a life insurance claim with State Farm, beneficiaries can call 877-292-0398 or submit a claim online. State Farm reviews the notification within one to two business days and mails or emails claim forms along with a list of required documents. Once it receives everything, payment is processed within one to three business days. Electronic payments arrive within two to three business days after processing; paper checks can take up to 10 business days.
STATE FARM CLAIMS CONTACT INFORMATION
Phone: 877-292-0398
Mail:
State Farm Life Insurance Company
Life Claims
P.O. Box 2364
Bloomington, IL 61702-2364
State Farm Life Insurance vs. Other Insurers
The main difference between State Farm and most competitors is the buying process. State Farm requires working with a local agent for nearly every policy, while insurers like Ethos offer fully online applications and instant or same-day decisions for qualified applicants. For buyers who prioritize speed and convenience, that distinction matters more than any coverage detail.
On price, State Farm runs above average at every term coverage level. A 40-year-old nonsmoking man pays $66 per month for a $500,000, 20-year term policy with State Farm. Banner Life and Transamerica, the cheapest term life providers in our analysis, charge $46 per month for the same profile. That's a gap of $20 per month or $4,800 over a 20-year term. If your primary goal is the lowest term rate, State Farm won't win. But if you want a single carrier for term, whole life, universal life and potential rider combinations, plus local agent access, the cost reflects real service value and product breadth.
State Farm's whole life lineup, standard, limited pay and single premium structures, covers more ground than most direct-to-consumer carriers; Banner Life offers no whole life policies and Transamerica carries one. Buyers prioritizing lower rates or broader options can compare the best life insurance and cheapest life insurance companies.
Is State Farm Right for You?
If you're comparing multiple policy types, have complex coverage needs or prefer working with a local agent, State Farm is worth serious consideration. Its A+ A.M. Best rating, 0.38 NAIC complaint index and second-place J.D. Power finish out of 22 reflect strong financial stability and a complaint volume well below the industry average of 1.0. State Farm costs more than average, but buyers who prioritize service, permanent policy options and financial strength over price have few stronger options at this tier.
Who Should Choose State Farm?
State Farm is a strong fit for buyers who:
- Want personalized guidance from a local agent when choosing among permanent life insurance options.
- Need advanced estate planning solutions, such as joint or survivorship universal life insurance.
- Value flexible family protection, with riders like children's term coverage and the Flexible Care Benefit Rider.
- Are considering single-premium whole life insurance, where State Farm ranks well for its financial strength and policy guarantees.
Who Should Consider Other Insurers?
State Farm may not be the best option if you:
- Prefer a fast, fully digital application process with quick underwriting decisions. Insurers like Ethos are better suited for online-first buyers.
- Want the lowest term life insurance rates. Banner Life and Transamerica have lower premiums across most age groups.
State Farm Life Insurance Reviews: FAQ
State Farm is a strong choice for most buyers. Its NAIC complaint index of 0.38, well below the industry average of 1.0, signals far fewer complaints than expected for its size. It ranked second out of 22 insurers in J.D. Power's 2025 life insurance satisfaction study. One drawback is price: term rates are 10% to 15% above the national average.
State Farm offers five payout options: lump-sum payment, scheduled installments, annuities, retained asset accounts and living benefit access for qualifying policyholders. Lump sums suit beneficiaries who want to pay off debts or invest immediately; installments and annuities work better for those who need a steady income over time. Retained asset accounts let the insurer hold funds while the beneficiary decides. Living benefit access is for policyholders, not beneficiaries, and allows early access to the death benefit for chronic or terminal illness expenses.
State Farm allows conversion from term life to permanent policies without new medical underwriting, subject to age limits and policy rules.
State Farm has online information and quote tools, but most policies require working with an agent to complete the purchase.
State Farm processes most claims within one to three business days of receiving all required documents. Electronic payments arrive within two to three business days after processing. Paper checks can take up to 10 business days. Beneficiaries should file by phone or online and expect to receive claim forms within one to two business days of notification.
State Farm's permanent policies, such as whole life and universal life, build tax-deferred cash value. Participating whole life policies may earn dividends, though they aren't guaranteed. Withdrawals or unpaid loans reduce the death benefit.
MoneyGeek scored State Farm using rate data for our baseline profile of a 40-year-old male nonsmoker in average health seeking $500,000 in coverage on a 20-year term. The MoneyGeek Score weights affordability at 50%, customer experience at 30% and coverage options at 20%. Customer experience ratings draw from customer reviews, J.D. Power life insurance study scores, AM Best financial strength ratings and NAIC complaint indexes.
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About Patrick Bryant
Patrick Bryant is the Vertical Lead for Life and Health Insurance at MoneyGeek, where he researches insurance products, writes consumer guides and maintains the scoring methodologies behind our provider comparisons. He analyzed more than 50 life insurance carriers across multiple policy types, collecting thousands of quotes nationwide to evaluate rates, coverage options and underwriting factors. His methodologies are reviewed quarterly to reflect current market conditions and carrier data.
Sources
- State Farm. "Life Insurance Claims." Accessed August 24, 2026.
- State Farm. "Term Life Insurance." Accessed August 24, 2026.
- State Farm. "Universal Life Insurance." Accessed August 24, 2026.
- State Farm. "Whole Life Insurance." Accessed August 24, 2026.