Please note that we are an independent life insurance agency and not State Farm, and this article simply represents our comparison guide to State Farm Life Insurance versus alternative options.
I’ve seen State Farm advertise on TV lately promoting their life insurance policies, so I decided to write a State Farm life insurance review. In this article I’ll cover how state farm life insurance rates compare to the competition, and I’ll provide some examples of pricing between State Farm life insurance and other top rated life insurance companies. If you would like to compare rates for yourself, simply use our instant online quote tool right below this paragraph. Otherwise keep reading for State Farm Life Insurance Review or to learn more about companies life AICPA Life Insurance or our AAA Term Life Insurance review.
I’ll start out by saying that State Farm is a solid company that has been in business since the 1920s. They can be a good choice for your home and auto insurance. However, when it comes to life insurance they simply don’t have the best rates. Why buy a State Farm Life Insurance policy, when you can save 20-30% off simply by shopping around for the best rate?
State Farm can get away with charging more for life insurance because they already have your auto and possibly home policies, and that provides them the opportunity to sell you life insurance as well. However, as you will see in the examples I provide below, it doesn’t make sense to go with State Farm for several reasons – and pricing isn’t the only one.
Let’s take an example of a 35 year old female applying for $500,000 of 30 year term life insurance coverage. I’ll compare Preferred Plus Non Tobacco rates, and Standard Non Tobacco Rates.
There are several companies that have the most competitive pricing in this case such as SBLI, ANICO, Banner Life, Protective Life , Transamerica, American General and Prudential – all ranging between $31-$36 at Preferred Best Non Tobacco. State Farm’s best rate is $43.95 per month. At preferred plus you can save $156 per year, or $4,680 over the course of your term policy by not going with State Farm
At Standard Non Tobacco rate, the same 35 year old female will get a rate of $61.95 per month – the best price in this case is with SBLI. With State Farm the rate for the same policy would be $79.15 per month. On an annual basis you would save $206, and $6,192 over the lifetime of your policy.
The older you are, the more of a disparity will exist between State Farm’s rates and rates that you can get by going elsewhere. State Farm might be good for auto and home insurance, but they do not provide the best value for a term life insurance policy.
When you work with a State Farm agent for your life insurance needs, they don’t do any comparison shopping for you. They only offer one choice. When it comes to Life Insurance the key to getting the best rates is by comparing pricing among the top life insurance companies. At ChooseTerm.com we are completely independent and help you compare rates among the best life insurance companies.
State Farm’s underwriting is very conservative. What does that mean? It means that they don’t want to take too much risk when insuring people for life insurance. They generally only approve people in good health, and if you have a pre-existing health condition, and considered high risk – they will likely not approve you.
If you have a pre-existing condition such as diabetes, multiple sclerosis, hepatitis C, Crohn’s disease or other common conditions, you are not going to the best rates from State Farm, and may not get approved for coverage at all.
ChoosetTerm specializes in high risk life insurance and can help you get approved for coverage if you have a pre-existing condition.