State Farm made Forbes Advisor’s best whole life insurance companies list and sells three types of life insurance products:
- Term life
- Universal life
- Whole life
State Farm Term Life Insurance
Term life insurance provides a level premium for a set period of time or “term,” such as 10, 20 or 30 years. If you die during this time, your beneficiaries receive a tax-free death benefit. If you outlive the term, you can renew—but often for a higher rate.
State Farm has three term life insurance policies, some of which can be converted into permanent life insurance if you want longer coverage down the road.
State Farm’s Select Term life insurance comes in 10-, 20- and 30-year terms with coverage starting at $100,000. You can renew it until age 95.
State Farm’s return of premium term life insurance provides a refund of premiums if you outlive the term period. This policy also builds cash value you can borrow from. However, withdrawals and loans will decrease the death benefit if you pass away.
State Farm’s Instant Answer Term life insurance is no-exam life insurance. It offers $50,000 in coverage for 10 years or until age 50, whichever comes later. While there’s no medical exam, you do have to answer a health questionnaire, which can disqualify you for coverage. You must also visit a State Farm agent’s office to apply.
State Farm Term Life Insurance Comparison
| Policy Type | Advantages | Coverage | Term Length | Renewability |
|---|---|---|---|---|
| Select Term | Most affordable life insurance policy | Starts at $100,000 | 10, 20, 30 years | Can renew until age 95 |
| Return of Premium Term | Can get your premiums back if you outlive the term | Starts at $100,000 | 20 or 30 years | Can renew until age 95 |
| Instant Answer Term | Same-day decision and no medical exam required | $50,000 | 10 years or until age 50, whichever is longer | N/A |
State Farm Universal Life Insurance
Universal life insurance is a type of permanent policy where you can adjust your premiums or death benefit, within certain parameters. Some people prefer it over whole life insurance because it’s generally less expensive but still can still build cash value and provide lifelong coverage.
State Farm’s universal life insurance policies offer lifelong protection and cash value that you can use to pay premiums, cover emergencies and more.
State Farm universal life insurance is the company’s most flexible permanent policy. It builds cash value and is available to individuals ages 0 to 85. Coverage starts at $25,000 or $50,000, depending on your age, and you can raise or lower your premiums as needed.
It’s important to remember that universal life insurance policies can lapse if the cash value gets too low to cover policy expenses and fees that are charged each month by the insurer.
State Farm also has two types of universal policies that cover two people in one.
With State Farm’s survivorship universal life insurance, beneficiaries receive a payout only after both policyholders have died. This type of policy is often used for estate planning, funding a special needs trust or leaving gifts to your favorite charities. It’s generally less expensive than buying two separate life insurance policies.
State Farm’s joint universal life insurance insures two people under one policy and pays a benefit after the first person dies. It’s mainly used to cover living expenses for a surviving spouse or to fund buy-sell agreements between business partners. Any unpaid policy loans or withdrawals at the time of death will reduce the death benefit amount.
State Farm Universal Life Insurance Comparison
| Policy type | Advantages | State Farm’s coverage | Coverage length |
|---|---|---|---|
| Universal life insurance | Most affordable and flexible universal life insurance policy. | Starts at $25,000 (for ages 0 to 17 and ages 55 to 85) Starts at $50,000 (for ages 18 to 54) | Lifetime |
| Survivorship universal life insurance | Covers two people—but only provides a death benefit after both individuals have died. Ideal for estate planning and charitable giving. | Starts at $250,000 (for ages 18 to 90, or 18 to 78 in California) | Lifetime |
| Jointuniversal life insurance | Covers two people—but pays a death benefit after the first policyholder dies. Ideal for surviving spouses or business partners with buy-sell agreements. | Starts at $100,000 (for ages 10 to 85) | Lifetime |
State Farm Whole Life Insurance
Whole life insurance offers lifelong protection and builds cash value. Because State Farm Life is a mutual company, there’s the potential to earn dividends. Whole life insurance has fixed premiums that won’t change, but is generally one of the more expensive ways to buy life insurance.
State Farm’s limited pay life insurance might be attractive to young adults who want permanent protection. You can pay the policy off in 10, 15 or 20 years, then enjoy lifetime coverage and avoid paying premiums after you’re retired. The policy builds cash value and can earn dividends you can use as extra cash, pay down premiums or purchase extra coverage.
State Farm’s single premium life insurance policy works just as it sounds—you pay one single premium that instantly “pays up” your policy for life. State Farm’s single premium face amount starts at $15,000, with the option to build cash value and earn dividends.
State Farm’s final expense policy is designed to cover burial expenses when you die (although beneficiaries can technically use the money for anything). State Farm’s burial insurance is available to buyers ages 50 to 80 (or 50 to 75 in New York) and pays a fixed $10,000 death benefit. It also builds cash value and may earn dividends.
State Farm Whole Life Insurance Comparison
| Policy Type | Advantages | State Farm’s coverage | Coverage length |
|---|---|---|---|
| Limited Pay | Pay off your policy in 10, 15 or 20 years, so you don’t have to pay premiums into retirement. | Starts at $100,000 | Lifetime |
| Single Premium | This policy is “paid up” after one single premium payment | Starts at $15,000 (for ages 0 to 80) | Lifetime |
| Final Expense (known as $10,000 whole life insurance in NY) | Helps cover burial expenses and funeral costs | $10,000 (for ages 50 to 80, or 50 to 75 in New York) | Expires at age 100; may be payable beyond this age |
As an expert and enthusiast, I have access to a wide range of information on various topics. While I don't have personal experiences or opinions, I can provide you with factual information and insights based on the data I have been trained on.
Regarding the concepts mentioned in the article you provided, here is some information related to each of them:
Term Life Insurance:
Term life insurance provides coverage for a specific period of time or "term," such as 10, 20, or 30 years. If the insured person dies during the term, the beneficiaries receive a tax-free death benefit. If the insured person outlives the term, they can renew the policy, but often at a higher rate. State Farm offers three term life insurance policies:
- Select Term: This policy comes in 10-, 20-, and 30-year terms with coverage starting at $100,000. It can be renewed until age 95.
- Return of Premium Term: This policy provides a refund of premiums if the insured person outlives the term period. It also builds cash value that can be borrowed from, but withdrawals and loans may decrease the death benefit.
- Instant Answer Term: This is a no-exam life insurance policy that offers $50,000 in coverage for 10 years or until age 50, whichever comes later. While there is no medical exam, a health questionnaire must be answered, and an application must be submitted at a State Farm agent's office.
Universal Life Insurance:
Universal life insurance is a type of permanent policy that offers flexibility in adjusting premiums or death benefits within certain parameters. State Farm's universal life insurance policies provide lifelong protection and cash value that can be used to pay premiums or cover emergencies. State Farm offers the following universal life insurance policies:
- Universal Life Insurance: This is State Farm's most flexible permanent policy, available to individuals ages 0 to 85. Coverage starts at $25,000 or $50,000, depending on the insured person's age. Premiums can be raised or lowered as needed.
- Survivorship Universal Life Insurance: This policy covers two people and pays out a death benefit only after both policyholders have died. It is often used for estate planning, funding special needs trusts, or leaving gifts to charities.
- Joint Universal Life Insurance: This policy covers two people and pays out a death benefit after the first person dies. It is mainly used to cover living expenses for a surviving spouse or to fund buy-sell agreements between business partners. Unpaid policy loans or withdrawals at the time of death will reduce the death benefit amount.
Whole Life Insurance:
Whole life insurance offers lifelong protection and builds cash value. State Farm's whole life insurance policies have fixed premiums that do not change but are generally more expensive compared to other types of life insurance. State Farm offers the following whole life insurance policies:
- Limited Pay Life Insurance: This policy allows young adults to pay off the policy in 10, 15, or 20 years, after which they can enjoy lifetime coverage without paying premiums during retirement. The policy builds cash value and can earn dividends.
- Single Premium Life Insurance: With this policy, a single premium payment instantly "pays up" the policy for life. The face amount starts at $15,000, and the policy can build cash value and earn dividends.
- Final Expense Insurance: This policy is designed to cover burial expenses and pays a fixed $10,000 death benefit. It is available to buyers ages 50 to 80 (or 50 to 75 in New York) and also builds cash value and may earn dividends.
I hope this information helps! Let me know if you have any further questions.
