Statefarm's Life Insurance Offerings: What You Need To Know

State Farm offers a range of life insurance products to suit different needs. These include term life insurance, which is ideal for short-term debts and added protection during child-raising years, and whole life insurance, which provides permanent coverage and builds cash value over time. State Farm also offers universal life insurance, which offers flexible premium payments and death benefits, as well as family life insurance, which provides coverage for your immediate family under a single policy.

Whole life insurance

State Farm offers a range of life insurance options, including whole life insurance. Whole life insurance is a permanent policy that provides coverage for your entire life, rather than a specified term. This means that as long as the policy is in force when the insured person passes away, their beneficiaries will receive a death benefit. Whole life insurance also includes a cash value component, which accrues value over time and can be borrowed or withdrawn. This feature can be particularly useful for estate planning, as it provides an additional asset for your family.

One of the key advantages of whole life insurance is that it offers lifetime coverage, guaranteeing a death benefit for your beneficiaries regardless of when you pass away, as long as the policy is in force. This is in contrast to term life insurance, which only provides coverage for a specified period. With whole life insurance, you also have the flexibility to access the cash value of the policy during your lifetime. This "living benefit" can be borrowed or withdrawn and used for various purposes, such as paying off debts or funding educational needs.

State Farm offers several options for whole life insurance policies, including Limited Pay life insurance, Single Premium life insurance, and Guaranteed Issue Whole Life insurance. Limited Pay life insurance allows you to pay premiums for a limited period (10, 15, or 20 years) while still receiving lifetime benefits. Single Premium life insurance requires just one premium payment for a lifetime of benefits. Guaranteed Issue Whole Life insurance, available in New York, is designed to cover final expenses and ease the financial burden of burial costs.

Term life insurance

State Farm offers a range of life insurance options, including term life insurance. Term life insurance is a simple type of life insurance that provides coverage for a specific period. Here's what you need to know about State Farm's Select Term Life Insurance:

Coverage Period

State Farm's Select Term Life Insurance policies offer coverage for 10, 20, or 30 years. You can choose the length of coverage depending on your needs. This flexibility allows you to align your insurance with specific financial obligations, such as student or vehicle loans, mortgage, or business loans.

Death Benefit

The primary benefit of term life insurance is the death benefit. If the insured person passes away while the policy is in force, their loved ones will receive a death benefit. This ensures that your family is financially secure and won't be burdened with debts.

Premium Payments

With Select Term Life Insurance, you have the option to pay your premiums monthly or annually. The initial premium remains level for the term you select, providing stability during the coverage period.

Convertibility

State Farm's term life insurance policies offer the advantage of convertibility. You can convert your term policy to permanent coverage at any time, regardless of your health. This feature provides flexibility if your temporary insurance needs evolve into lifetime needs.

Optional Riders

You can customise your term life insurance policy by adding optional riders. State Farm offers several riders, such as the Children's Term Rider, Select Term Rider, and Waiver of Premium for Disability. These riders provide additional benefits, such as temporary insurance for children, extended coverage, and premium waivers in the event of disability.

Auto Insurance Discount

If you have auto insurance with State Farm, purchasing a State Farm Select Term Life Insurance policy can entitle you to a discount on your auto insurance premiums through their multi-line discount.

Family life insurance

State Farm offers a range of life insurance options to cater to different needs and budgets. One of these options is Family Life Insurance, which provides coverage for your immediate family under a single policy. This means you won't have to deal with separate policies for each family member.

Here's how it works: once you or your spouse is covered by either a State Farm Select Term or Whole Life insurance policy, you can add one or both of the following riders to extend coverage to the rest of your family:

• Select Term Rider: This rider provides life insurance coverage up to age 95, with level premiums for 10, 20, or 30 years, depending on your chosen coverage. It can be converted to a permanent policy if needed and has a minimum coverage of $100,000.
• Children's Term Rider: This rider covers your children, including those yet to be born. Once a new child reaches 15 days old, they are automatically included in the coverage. The coverage terminates when the child turns 25 but can be converted to permanent coverage. The rider provides up to $20,000 in life insurance coverage for each child.

State Farm's Family Life Insurance is a cost-effective way to ensure your family's financial security. With their long history in the industry since 1929, you can trust them to stand behind their policies and protect your family's future.

Universal life insurance

State Farm offers a range of life insurance options, including Universal Life Insurance. This is a permanent policy that provides the flexibility to adjust coverage and premiums to meet changing needs. It can be structured as a Survivorship or Joint policy, depending on the number of individuals covered.

The policy also provides access to cash value, which grows tax-deferred, and can be utilised during the lifetime of the policyholder. This "living benefit" can be used for various opportunities, such as a family's loss of income, mortgage costs, or educational needs. The death benefit can be structured in two ways: a level death benefit equal to the basic amount of insurance chosen, or a death benefit that varies based on the policy's account value.

Additionally, Universal Life Insurance offers flexible death benefits, allowing policyholders to increase or decrease their coverage within certain guidelines. This flexibility ensures that individuals can adjust their coverage as their financial responsibilities evolve.

State Farm's Universal Life Insurance provides a combination of protection and customisation, giving policyholders control over their premiums and benefit amounts while also offering the security of lifelong coverage.

Variable universal life insurance

State Farm offers a range of life insurance products, including term life insurance, whole life insurance, and universal life insurance. While the website does not explicitly state the number of different types of life insurance offered, it does mention that customers can choose from various options such as time frames and coverage amounts.

• Flexibility: Variable Universal Life Insurance allows policyholders to adjust their coverage and premium payments. This flexibility enables individuals to increase or decrease their coverage and premiums to align with their life stage, financial situation, and changing needs.
• Death Benefit Options: This policy provides two death benefit options. The first option offers a level death benefit equal to the Basic Amount of life insurance chosen. The second option provides a death benefit that varies based on the policy's Account Value, including the life insurance amount and the accumulated Account Value.
• Customization: Policyholders can further customize their Variable Universal Life Insurance policy with additional riders. For example, the Level Term Rider provides term insurance to the spouse or another individual until the age of 95. The Children's Term Rider offers temporary insurance for eligible children until the earlier of age 25 or until the policyholder turns 65. The Guaranteed Insurability Option allows individuals to purchase additional coverage at specific option dates without a medical exam.
• Cash Value: Similar to other universal life insurance policies, Variable Universal Life Insurance builds cash value over time. This cash value grows tax-deferred, and policyholders can access it during their lifetime. The death benefit, regardless of its size, is generally passed on to the beneficiaries tax-free.
• Discontinuation of New Policies: It is important to note that as of September 27, 2008, State Farm discontinued offering new Variable Products, including Variable Universal Life Insurance. However, they continue to service existing policies and accept premium payments up to the maximum guidelines.

Frequently asked questions