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State Farm Final Expense Insurance Review


ConsumersAdvocate.org Rating: 4.1 / 5 (Excellent)
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State Farm is a mutual insurance company based in Bloomington, Illinois, that provides various insurance and financial services in the United States and Canada. Its insurance products are sold through agents and include home, auto, business, life, and more. The company offers final expense insurance policies (called Whole Life in New York) through its life insurance division.
 
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How is State Farm Final Expense Insurance rated?

Breakdown

4.0/5
Policy Features
3.5/5
Qualifications
5.0/5
Financial Strength
3.8/5
Customer Experience

Overall Rating: 4.1 / 5 (Excellent)

State Farm's final expense insurance policy is fairly limited when compared to other insurers. It has one option for a $10,000 coverage maximum, only accepts customers between 50 and 80 (there are companies with a wider age range), and customers that are in average, good, or excellent health.

On the plus side, its premiums are level premiums - that is, benefits are available immediately if the policy owner passes away and premiums do not increase - but it does not leave a lot of options for older adults with serious health problems, who would be most interested in this type of insurance.

Its prices, as expected, are markedly different for older adults as well. In the quote we requested, for example, we received a quoted premium of $27.71 for a 50-year-old woman in California versus $78.62 for a 68-year-old. That standards for health were also fairly rigorous. To qualify as "average health" - the lowest health classification available - the applicant cannot have hypertension, high cholesterol, have little history of family cancer or heart disease, and no more than two traffic violations within the last 12 months, among others.

A plus in their column is State Farm's long history, stability, and financial strength. However, that is offset by the lack of available options for individuals with any current health problem, those older than 80, and fairly low coverage.

State Farm Final Expense Insurance Policy Features

Policy Features - 4 / 5

State Farm's final expense insurance policy is part of its whole life insurance policy and functions very much the same way. Part of the premium paid goes into an account that accrues tax-deferred cash value and could pay dividends (although it's not guaranteed). As far as options, State Farm does not offer many options in the way of final expense insurance coverage. It has one policy with a maximum of $10,000 coverage. Consumers needing more coverage than that would be directed to one of their life insurance policies, which do have plenty of coverage options, but might require a medical exam.

Policy Coverage Maximum

$10,000

Types of Insurance Products

  • Whole Life
  • Term
Types of Premiums
Fixed
Restrictions on Benefit Usage
No
Accidental Death Coverage
No
Cash Value Accumulates
Yes
Claim Payout (Days)
Unspecified

State Farm Final Expense Insurance Qualifications

Qualifications - 3.5 / 5

Although State Farm does not list any disqualifying information, its final expense insurance quotes are only for those that meet certain health standards (they have a checklist to show if a customer qualifies as being in average, good, or excellent health). Their price is dependent on age as well, with a significant increase in the policy premium for older customers. It's important to call an agent and discuss your particular concerns to see what they have available.
Age Range
50 - 80
Medical Exam Required
No
Disqualifying Factors
Current Hospitalization
Hospice Care
Pre-Existing Conditions

State Farm Final Expense Insurance Financial Strength

Financial Strength - 5 / 5

As one of the oldest and most successful insurers in the country, State Farm's financial strength is unquestionable. It's been rated as stable, superior, or excellent by all three rating agencies in the field.
Year Founded
1922
Company Type
Underwriter
Underwriter
State Farm
Standard & Poor's Financial Rating
AA
Moody's Financial Rating
Aa1
A.M. Best Financial Rating
A++

State Farm Final Expense Insurance Customer Experience

Customer Experience - 3.8 / 5

State Farm has an A- rating from the Better Business Bureau, but an poor score of 3.8 out of 10 score on Trustpilot. In 2018, State Farm's life insurance division was the subject of a class-action lawsuit alleging that the company had systematically overcharged policyholders for 23 years. The lawsuit claimed that State Farm had been using "unexplained factors" to add charges and increase rates. In July 2018, the policyholders were awarded $34 million. The company is appealing the verdict.
BBB Rating
A-
Number of BBB Positive Reviews
6
Number of BBB Negative Reviews
193
Trustpilot Rating
3.8 out of 5
NAIC Complaint Ratio 2018
0.13
NAIC Total Complaints 2017
35
Date Collected
2018-07-26

Company Profile

Full Name
State Farm Final Expense Insurance
Company Website
https://www.statefarm.com/insurance/life/whole-life/final-expense
Headquarters
One State Farm Plaza, Bloomington, IL, 61710

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