State Farm Final Expense Insurance Review (Plan Details)

State Farm Final Expense Review
State Farm Final Expense Insurance Review (Plan Details)

Disclaimer: Willamette Life is a direct competitor of State Farm. This post is written to help you make a purchasing decision and to understand your options better.

State Farm Logo

Usually, seniors are not thinking about funeral costs when in retirement years. The average funeral can cost between $8,000 – $12,000. If there is no money set aside for these final costs, the financial implications can be extreme for unassuming family members.

Great burial insurance companies and plans can help families pay for these inevitable costs.

State Farm offers this type of protection, but there are important factors to understand about their plan.

State Farm Final Expense Insurance Review

The company was founded in 1922 by a retired farmer, George J. Mecherle, as a mutual automobile insurance company owned by its policyholders. Originally specializing in auto coverage for farmers, they later expanded services into other offerings and now offer almost 100 products across all their platforms.

They have an A+ review from AM Best, a reputable rating company. This rating means if you take out a policy, you will not have to worry about whether your beneficiary will receive the money. This carrier is very financially stable and able to fulfill its financial obligations.

Company Details

  • Established: 1922
  • A.M. Best Finacial Rating: A+ (superior)
  • Headquarters: Bloomington, IL

State Farm is a major brand with many different product lines. For this specific review, our attention will be focused exclusively on the funeral insurance product offered.

senior woman smiling in teal

State Farm Final Expense Insurance

State Farm’s final expense insurance plan is designed for seniors to prepare for funeral costs.

Plan Details

  • Age Eligibility: 50 – 80 (75 in NY)
  • Coverage Amount: $10,000 only
  • State Availability: 49 states & DC (excluding MA)
  • Medical Exam: No
  • Health Questions: Yes
  • Waiting Period: No
  • Permanent Coverage: Yes
  • Builds a Cash Value: Yes
  • Smoking Rates: Yes

Whole Life Insurance Features

Final expense insurance plans come with three permanent whole life benefits.

Price Never Changes: Understanding the monthly cost is a top priority for seniors on a fixed income. Your price is locked in and will never increase for all whole life insurance policies.

Coverage Never Decreases: The carrier also guarantees the coverage will never decrease or terminate. This feature assures the beneficiary will have the funds needed to honor the deceased.

Builds Cash Value: With every payment made, a portion will go towards the cash value account. Over time this account will grow and can be borrowed from.

Immediate Benefits

This plan provides coverage with no waiting period for seniors. Day-one coverage should be a top priority for any applicant. However, with immediate coverage comes more strict underwriting standards.

Limited Coverage Amount & Age Restrictions

State Farm has a single death benefit option. The only amount of protection offered is $10,000. This can be problematic for anyone looking for a varying amount of coverage. Applicants attempting to find final expense insurance for seniors over 80 will not be able to use this plan. This is because the initial converge will only be issued until age 80.

State Farm Life Insurance Quotes

The State Farm final expense quotes are average compared to others on the market. Lower prices can be found with other highly respected companies. The quotes shown are non-smoking rates.

$10,000 of Coverage

Monthly Premiums

AgeFemaleMale
50$31$36
55$37$44
60$44$53
65$56$67
70$71$86
75$97$115
80$138$159

man in brown shirt

Underwriting & Health Conditions

For simplified issue underwriting, this process has easy yes or no questions to determine your health eligibility. The State Farm Insurance Company also does a prescription history check to ensure your answers to the health questions are accurate.

Health Questions

If you answer “yes” to any of the health questions below, you are immediately ineligible for the plan and cannot get coverage.

You must answer “no” to all questions to be eligible for this senior final expense program.

1. Have you ever been rated or declined by us in the past for any life coverage?

2. Are you currently:

  • Bedridden at Home
  • Confined to a Wheelchair
  • In a Hospital or Nursing Facility
  • Oxygen to Assist with Breathing
  • Receiving Home Health Care
  • Require Assistance with Activities of Daily Living

3. Have you ever had or been treated for the following:

  • AIDS or HIV
  • Alzheimer’s or Dementia
  • Amputation Due to Disease
  • Dialysis
  • Heart Defibrillator
  • Huntington’s Disease
  • Lou Gehrig’s Disease (ALS)
  • Multiple Sclerosis (MS)
  • Muscular Dystrophy
  • Organ or Tissue Transplant
  • Parkinson’s Disease

4. Within the last 3 years, have you had or been treated for the following:

  • Alcohol or Drug Abuse Treatment
  • Aneurysm
  • Angioplasty
  • Anxiety
  • Bipolar
  • Cancer or Tumor
  • Chest Pains (Angina)
  • Chronic Bronchitis
  • Cirrhosis
  • Congestive Heart Failure
  • COPD
  • Depression
  • Diabetes
  • Emphysema
  • Heart Attack
  • Heart or Circulatory Issues or Procedure
  • Hepatitis A, B, or C
  • Irregular Heartbeat
  • Kidney Disease
  • Schizophrenia
  • Stroke or mini-stroke (TIA)
  • Stent Placement

husband and wife smiling

State Farm Funeral Insurance FAQ’s

Is State Farm Final Expense Life Insurance Any Good?

State Farm’s final expense program is nothing special and costs more than its competition. It does not offer any unique benefits that justify the higher price. Other companies offer better pricing and more additional benefits.

Does State Farm Have Burial Insurance?

State Farm offers burial insurance in one single coverage size of $10,000. With lackluster additional features and higher prices than the competition, it is best to avoid this final expense policy altogether.

Do State Farm Award Dividends to Policy Holders?

Dividends, while not guaranteed, are often earned by policyholders.  You have the option to accumulate dividends and earn interest, purchase paid-up additions, reduce a premium that’s due, or receive cash.

Does State Farm Offer Final Expense Insurance?

State Farm offers final expense insurance. With higher than average premiums and only one coverage amount, it is best to avoid this large insurance company.

State Farm Final Expense Insurance Quotes vs. Competition

Burial insurance costs vary by carrier. The State Farm final expense quotes are higher than some of their competitors like Mutual of Omaha. The quotes shown are non-smoking rates.

Female

Monthly Premiums

AgeState FarmMutual of Omaha (Living Promise)
$10,000 of Coverage$10,000 of Coverage
50$31$25
55$37$28
60$44$33
65$56$40
70$71$53
75$97$72
80$138$98

Male

Monthly Premiums

AgeState FarmMutual of Omaha (Living Promise)
$10,000 of Coverage$10,000 of Coverage
50$36$29
55$44$35
60$53$43
65$67$56
70$86$74
75$115$100
80$159$133

Captive vs. Independent

When purchasing coverage, there are two types of agents that seniors can use to obtain coverage.

Captive Agents: State Farm sells its products through captive agents that are contractually obligated to only represent State Farm. This can be problematic because each carrier has different underwriting standards and price points.

Independent Agents: Representing as many carriers as they choose, independent agents have access to various insurance companies and can find the applicant the best coverage at the lowest price.

Why Willamette Life

Willamette Life focuses exclusively on the funeral insurance market. Our singular focus is finding the lowest priced plan and best coverage for your specific financial and medical situation.

Call Willamette Life at 844-576-0019

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Final Thoughts About State Farm Burial Insurance

a. This State Farm final expense insurance review has unveiled the higher premiums and lack of additional policy benefits. Less expensive plans can be found elsewhere.

b. The carrier only offers $10,000 of coverage with no flexibility. This does not allow customizing coverage for the individual.

c. Work with a highly rated independent agent that can shop around for coverage on your behalf. This will guarantee you receive the lowest price and best plan structure.

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