State Farm Burial Insurance Review

Written by Jeff Root

StateFarm Insurance is low on most insurance comparison sites in its ranking, compared to the many bigger insurers out there. They have more complaints on average for their car insurance than the average rates for the industry. However, and their life insurance does not generate nearly as many complaints.

About StateFarm

statefarm final expense insurance reviewStateFarm Insurance is the biggest auto and home insurance provider and the eighth biggest life insurance company. They have agents all over who only offer StateFarm Insurance products. If you want to work with a company that is well known, has a solid brand, and has an array of products, this is it. They also provide consumer-friendly pricing.

They have a score of 3 out of 5 from J.D. Power ratings, for their customer service and their claims satisfaction. There are also many consumer complaints from the National Association of Insurance Commissioners which is why some insurance rating companies rank it 19th out of the 21 top companies.

They have been ranked by J.D. Power as better than most for the purchase experience, particularly for auto insurance. They are above average in their overall rate of customer satisfaction and above average for home insurance customer satisfaction.

They have been ranked better than most for their overall customer service levels, and they are the best ranked company for overall life insurance satisfaction. State Farm Insurance has a superior financial strength of A++, according to A.M. Best which indicates that they will pay claims without issue.

StateFarm Final Expense Policies

They have a unique final expense policy that provides excellent coverage for those who need it. The National Funeral Directors Association has determined that the average cost for a burial service and a vault is $8,508.

The average cost for cremation, something many people think is significantly cheaper, is $6,078. This final expense life insurance offered by StateFarm gives a guaranteed death benefit of $10,000 that your beneficiaries get to apply to funeral services, burial expenses, or other related expenses as necessary.

Life insurance from StateFarm is designed to lay the foundation for your family’s financial protection and it is a unique whole life insurance policy. This final expense policy would help you to prepare your family financially for your inevitable loss and simultaneously build cash value which you can apply to any financial needs throughout the course of your lifetime.

The final expense life insurance helps families to worry instead about their grief rather than financial difficulties during their time of grief.  This a final expense policy provides a fixed $10,000 death benefit to your beneficiary who can choose to use it to pay off your final expenses.

Eligibility

Premium Duration Coverage Limits Issue Ages
To age 100 $10,000 only 50 to 80

50-75 in New York

For this StateFarm a final expense policy, once you exceed 80 years of age your policy will not expire. However, they simply stop accepting new applicants at this point. Once the policy has been issued it will continue to last.

Benefits to Final Expense Insurance With StateFarm

  • Your premiums remain level which means they do not change. They can be payable beyond age 100.
  • The death benefit is guaranteed as long as the premiums have been paid on time.
  • You can set up monthly or annual premium payment.
  • Any cash value from your policy is tax-deferred.
  • Your beneficiary chooses whether the money should be used for burial expenses.
  • The policy can potentially earn dividends which you can use to reduce your premiums or get in cash.

Final Expense Insurance Rates

The sample costs listed below will show you comparatively how male and female final burial insurance premiums compare among a small handful of companies offering the same policy.

Women typically pay less than men simply because they are statistically likely to live longer and therefore pose less of a financial risk to the life insurance company.

However, age remains the main predictor of premiums as evidenced by the incremental increase based on age listed below.

Final Expense Rates for Females

Note, these are rates for a $10,000 policy for non-smokers who are in good health.

Age StateFarm Mutual Of Omaha Foresters Financial Transamerica
50 $27.71 $24.67 $26.05 $25.30
55 $34.88 $28.40 $31.16 $29.10
60 $42.40 $32.87 $35.41 $33.60
65 $53.92 $41.01 $42.80 $41.60
70 $72.22 $53.24 $53.42 $53.90
75 $98.08 $72.41 $75.08 $72.80
80 $136.60 $98.43 $111.08 $104.00

Final Expense Rates for Males

Note, these are rates for a $10,000 policy for non-smokers who are in good health.

Age StateFarm Mutual Of Omaha Foresters Financial Transamerica
50 $33.15 $29.16 $32.00 $30.70
55 $41.60 $35.09 $36.86 $35.90
60 $53.25 $42.76 $45.19 $43.70
65 $71.36 $55.76 $55.75 $56.50
70 $90.79 $73.70 $72.91 $74.60
75 $123.95 $99.53 $102.69 $100.00
80 $155.40 $132.65 $146.74 $140.20

Final Expense Insurance for Tobacco Users and People with Health Concerns

StateFarm subjects tobacco users to higher premiums. A tobacco user is defined by the company as anyone who has consumed tobacco or nicotine within the last 12 months.

There is no medical exam required to qualify for this policy. Instead, the application consists of answering basic health questions and you’re consenting to have your prescription and medication history reviewed.

With StateFarm, you are either accepted or declined. There is no middle ground for this policy. They asked about certain health issues on the application and if you have them you are declined. If you do not have them you are accepted.

They will also run a prescription history check so that they can search for any prescription medications indicative of treatment for conditions they ask about on the application. Theoretically, even if you lie on the application, your prescription history will reveal any discrepancies. Assuming you told the truth it will simply cooperate your story.

They will ask you the following health questions. Bear in mind that if you answer yes to any of them you will automatically be declined:

  • Have you ever been declined by StateFarm in the past for a life insurance product?
  • Are you currently bedridden at home?
  • Are you currently receiving Home Health Care?
  • Are you currently in a hospital or nursing facility?
  • Do you currently require assistance with your daily activities for daily living such as eating, bathing, or using the restroom?
  • Are you currently using oxygen to Breathe?
  • Are you currently confined to a wheelchair?
  • Have you ever had or been treated for Alzheimer’s or dementia?
  • Have you ever had or been treated for Lou Gehrig’s Disease?
  • Have you ever had or been treated for cirrhosis?
  • Within the last three years have you had or been treated for cancer?
  • Have you ever been put on dialysis?
  • Have you ever had an organ or tissue transplant?
  • Have you ever had or been treated for muscular dystrophy?
  • Within the last three years have you had or been treated for COPD?
  • Have you ever had or been treated for Hepatitis A, B, or C?
  • Have you ever had or been treated for Parkinson’s Disease?
  • Within the last three years have you had her been treated for alcohol or drug use?
  • Within the last three years have you had or been treated for kidney disease?
  • Have you ever had or been treated for Huntington’s disease?
  • Have you ever had or been treated for multiple sclerosis?
  • Within the last three years have you had or been treated for a heart or circulatory procedures such as a balloon procedure, angioplasty, or stent placement?
  •  Have you ever had a heart defibrillator used on you?
  •  Have you ever had or been treated for AIDS or HIV?
  •  Within the last three years have you had or been treated for a mental or nervous disorder like schizophrenia?
  • Within the last three years have you ever had or been treated for issues of your heart or your circulatory system, including aneurysms, heart attacks, congestive heart failure, or chest pain?
  • Within the last three years have you had or been treated for a stroke or a mini-stroke?

Clearly, StateFarm has very strict underwriting relative to other life insurance companies. Even though they do not require a medical exam for their final expense policies, they will decline many applicants because of affirmative answers to any of the aforementioned questions.

They do not offer any form of guaranteed acceptance, unlike other companies. You still have to qualify based on your health and your tobacco use.

Final Expense Rates for Smokers

Tobacco use can impact the rates that you are given for your premium.  You can see in the samples below when compared to those above what the difference is not just from StateFarm but from comparative companies for those who are tobacco users and choose to undergo a medical examination and those who are not. Again, your health is the main factor in determining the risk have a higher risk for many health conditions.

StateFarm Final Expense Rates for Female Smokers

Note, these are rates for a $10,000 policy for smokers who are in good health.

Age StateFarm Mutual Of Omaha Foresters Financial Transamerica
50 $31.50 $31.18 $31.29 $31.43
55 $40.97 $36.37 $38.67 $38.32
60 $51.17 $43.08 $45.77 $44.67
65 $67.28 $53.96 $57.71 $56.00
70 $88.87 $67.87 $72.18 $73.68
75 $118.36 $89.31 $94.42 $98.95
80 $147.25 $135.69 $135.19 $134.74

StateFarm Final Expense Rates for Male Smokers

Note, these are rates for a $10,000 policy for smokers who are in good health.

Age StateFarm Mutual Of Omaha Foresters Financial Transamerica
50 $42.88 $34.40 $40.59 $36.89
55 $52.94 $41.41 $50.01 $47.27
60 $66.39 $51.91 $60.57 $59.02
65 $91.35 $68.94 $76.06 $78.99
70 $115.80 $95.52 $98.32 $106.76
75 $140.23 $135.67 $132.49 $143.47
80 $171.08 $212.14 $181.75 $193.47

What is the Best Final Expense Insurance Company?

You want a company that offers unique value and Superior pricing relative to competitors. Most of the features and benefits built into the StateFarm funeral Insurance are very similar to other policies with the same face amount.

The key difference is what you pay in terms of premiums. There are a few situations where StateFarm is financially a better offer than other life insurance companies, especially for older male tobacco users.

Unfortunately, anyone with the health issues mentioned above, anyone over the age of 80, any females, and any males who are not tobacco users might find that the prices offered by StateFarm are comparatively higher than prices offered by similar companies for the exact same product.

Given this fluctuation, it is important to review your situation and the quotes that you have available to you.

How to Find the Best Final Expense Insurance 

When it comes to looking for final expense insurance, you want to make sure you compare a lot of options before making a purchasing decision in order to secure the best rates.

Due to the large amount of life insurance companies out there, we recommend working with an independent life insurance agent who represents many of the best final expense insurance companies on the market, in order to compare the best policies for you.

Give our agents a call today to speak with them and begin finding the right final expense coverage for you and your family, or get staretd with our online quoting tool to find quick and easy final expense insurance rates.

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About Burial Insurance Coverage
About Burial Insurance Coverage

We work with individuals across the nation to secure the best life insurance rates.

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