State Farm Life Insurance
Everyone knows that State Farm is toward the head of the pack when it comes to automobile insurance but there are probably not many who know that State Farm also issues life insurance policies in all states but one. With products in both term and permanent life insurance, there are a number of policies that can suit anyone’s budget as well as their insurance needs.
Actually, there are two companies that issue State Farm Life Insurance, the first is:
- Life Insurance and Annuities
- State Farm Life Insurance Company
- Bloomington, Illinois
However, this company is not licensed in Massachusetts, New York or Wisconsin. For those consumers seeking life insurance in New York or Wisconsin, State Farm issues life insurance under:
- State Farm Life and Accident Assurance Company
- Home Office
- Bloomington, Illinois
Note that neither of those State Farm companies issue life insurance in Massachusetts. Quite often a state will have regulations so restrictive that insurance companies are unable to underwrite in that particular state. Massachusetts isn’t alone in this as both in automobile as well as life insurance there are a number of companies that simply cannot find it practical to underwrite insurance under current legislation.
Two Basic Categories of Life Insurance
State Farm actually carries two main types of life insurance which are term and permanent policies. Term life is set up for a specific term (time period) while permanent life insurance is meant to be written and in effect for the entire life of the policy holder. There are advantages and disadvantages to both types of policies, depending on what it is that you are looking for in life insurance.
State Farm Term Life Insurance
Of course the simplest type of life insurance is always term life since it is a policy that is considered to be temporary, or finite, in that it is written for a period of time between 5 and 30 years and the premiums are level throughout. Most people use term life insurance as extra coverage during periods in their lives when there are still dependents at home or when large bills (i.e. home loans, student loans) are still outstanding. One thing to be aware of is the fact that each time the term ends and the insurance needs to be renewed it will cost more money accordingly depending on the age and state of health of the insured. If you are considering term life it would be in your best interest to take out the longest term policy possible so that you can be locked into level premiums. Most often term life can be renewed through the insured’s 85th year but in some cases it can be renewed through age 95.
State Farm Permanent Life Insurance
There are three basic types of State Farm Permanent Life Insurance policies which can be issued including Whole Life, Universal Life and Survivorship Universal Life. Of the three, Whole Life is the most basic as the premiums stay level throughout and the policy stays in effect for the life of the insured if the premiums continue to be paid. Dividends are paid if the company makes money and any cash value growth of the policy over time is tax deferred until it is cashed in. Universal Life on the other hand is determined by the insured in terms benefits and premiums. There is flexibility in all three areas of premiums, benefits and the amount of insurance to be underwritten Survivorship Universal Life is another flexible policy in terms of benefits and premiums and the real difference between Universal Life and Survivorship Universal Life is that the latter covers two people, not just one.
As one of the oldest and most well known insurance companies in the United States, State Farm insurance products are well respected. In fact, since they also have a number of other types of insurance products on the market it may even be possible to get a discount on some of them for carrying multiple policies. When getting a quote, this would be a great question to ask.