State Farm Final Expense Review: 10 Facts & Quote Comparisons

state farm final expense review senior couple looking over paperwork with agent

State Farm Final Expense Review: 10 Facts & Quote Comparisons

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

State Farm Final Expense Review Logo red words white background

In this State Farm Final Expense review, we will discuss the features of the policy, health qualifications, quotes, how they stack up against the competition, and company history.

Is State Farm Final Expense Insurance a good idea?

The quick answer – Their Final Expense product is nothing special and costs more than its competition. It does not offer any special features that are not offered by the other companies to justify this higher price.

If you have other products through them and are hoping to “bundle” and save money, this will not necessarily be the case. In fact, life insurance products are state-regulated and not subject to discounts.

Other companies offer better pricing even after taking into consideration any bundling discounts you may receive.

According to the National Funeral Directors Association, the average cost of a traditional funeral is up 7.4% in the last 5-years to $9,135. And this does not take into consideration any medical bills or outstanding debts that you might have.

Do your loved ones have this kind of extra money to cover your end-of-life expenses?

Final Expense Insurance is worthwhile coverage to have given these statistics. Now we all know State Farm from the auto insurance world, but let’s see how their product built to cover end-of-life expenses compares to others.

State Farm Final Expense Review

This product is a Simplified Issue Whole Life policy.

This means that the policy lasts your whole life and has a quick and simple underwriting process that it must go through.

Other features of Simplified Issue Whole Life policies include:

  • No Exam
  • No Expiration
  • Coverage Lock
  • Price Lock
  • Builds Cash Value

All of these features are included with this plan as well as ALL other plans in this category.

Let’s get into what all of this actually means because we’re assuming you are looking for a bit more information than this!

10 Facts & Features

#1 CoverageState Farm Final Expense Review coverage icon teal hands and shield

They offer one option for coverage, $10,000. You do not have the option to lessen or get additional coverage with this product.

Most companies offer coverage anywhere between $5,000 – $50,000. This allows flexibility and customization given what your specific end-of-life costs will be.

If you are looking for more than $10,000 of coverage, this plan is not for you.

Other companies do not lock you into a set amount of coverage. Independent agencies (that’s us) will work with your monthly budget to get you the most coverage possible.

#2 AgeState Farm Final Expense Review age icon three teal men

They accept applicants 50 – 80 years of age (75 in New York). If you are not in this age bracket, your application will not be accepted.

While this is the target market age for this type of plan, other companies (that we represent) offer coverage for seniors up to 90 years young.

Understand that just because they do not accept applications past the age of 80, the policy does not expire at 80. It will last as long as you do!

#3 No ExpirationState Farm Final Expense Review no expiration icon teal hourglass flipping

As previously mentioned, the policy will never expire. This holds true as long as you are making the payments in order to keep your policy active.

Other types do expire at a certain point, but this is not one of those plans. No Whole Life policy ever expires, no matter who you buy it from.

#4 No ExamState Farm Final Expense Review no medical exam teal icon

There is no medical exam required in order to qualify for this plan. This is true of ANY Final Expense plan and is not unique.

Medical exams are optional or required for other plans that have larger policy amounts. Generally, if you elect to take a medical exam you will receive a better price – depending on the findings of course!

#5 No Waiting PeriodState Farm Final Expense Review no waiting period teal clock icon

Most policies that have stringent health qualifications do not have a waiting period. Which is true of their plan, but is not unique by any means.

This, however, is only upon qualification, and sadly most people who apply are turned away. We will get into exactly what they do and do not accept in regards to health and what other options you have later in this post.

#6 Payment FlexibilityState Farm Final Expense Review payment flexibility icon teal money and phone

They gives you the option to pay monthly or annually. While it is nice that they give these options, monthly payments are the most commonly selected.

Other companies offer monthly, quarterly, semi-annual, or annual payments allowing for even more flexible options.

#7 Price LockState Farm Final Expense Review padlock teal icon

The price you pay for your first payment will be the same price you pay on your last payment. The price is locked in for your life.

Whether you pay monthly or annually, that amount will never increase or decrease. This is essential for planning your financial future after retirement.

This is the same as ANY policy you will find and, again, this is not unique but is actually apart of the features required of Whole Life policies.

#8 Cash ValueState Farm Final Expense Review cash value increase teal icon

At the risk of sounding like a broken record – ALL Whole Life policies build cash value over time, they are not special for offering this. It is standard.

#9 DividendsState Farm Final Expense Review dividends money pie chart icon teal

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

Other companies offer this feature too!

#10 Health QualificationState Farm Final Expense Review health qualification teal heart icon

You MUST qualify for this plan by being in good health. They have rigorous health standards in order to be accepted for coverage.

Other companies are not as strict on health (and offer better rates). See the full list of health questions and conditions below that they do NOT ACCEPT.

Underwriting & Health Conditions

Underwriting is the process the insurer goes through to determine if it is worth the risk to insure you.

A good starting point to determine eligibility is to be in average health. They define this with the following criteria:

Average
Cholesterol generally less than 250.
Blood Pressure generally less than 135 / 90.
Unknown or some family history of cancer or heart disease.
One to two traffic violations in last 12 months.
No DUI in last 5 years.
No recreational drug or alcohol abuse.
Good
No major illnesses such as cancer, diabetes.
Cholesterol less than 220.
Blood Pressure less than 125 / 80.
Unknown or some family history of cancer or heart disease.
One to two traffic violations in the last 24 months.
No DUI in the last 5 years.
Occasional exercise.
No history of drug or alcohol abuse.
Very Good
No major illnesses such as cancer, diabetes.
Cholesterol less than 200.
Blood Pressure less than 120 / 75.
No family history of cancer or heart disease.
One to Two traffic violations in the last 24 months.
No DUI in last 5 years.
Regular light exercise.
No history of drug or alcohol abuse.
Excellent
No major illnesses such as cancer, diabetes.
Cholesterol less than 175.
Blood Pressure less than 115 / 70.
No family history of cancer or heart disease.
No traffic violations in 24 months.
No history of DUI.
Frequent vigorous exercise.
No history of drug or alcohol abuse.

For simplified issue underwriting this process has simple yes or no questions to determine your health. They also do a prescription history check to make sure it lines up with your answers to the health questions.

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

Health questions asked to determine acceptance:

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

-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

-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

-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

State Farm Final Expense Review Health Qualifications man stretching before running marathon

Quotes & Competition

As you can see below, the prices offered by other companies is far less per month (for the same product).

We reviewed quotes for every 5-years to give you the general idea. If you would like to see your specific age you can get quotes from our website for Mutual of Omaha, Foresters Financial, and Royal Neighbors of America.

Or call us at 833-518-0080

Female Non-Tobacco

$10,000 Coverage

AgeState FarmMutual of OmahaForesters FinancialRoyal Neighbors
50$31.11$24.67$26.05$33.67
55$37.22$28.40$31.16$37.55
60$44.31$32.87$35.10$38.24
65$55.57$40.01$42.80$44.63
70$70.92$53.24$53.42$55.59
75$96.85$72.41$75.08$79.81
80$137.71$98.43$111.08$110.40
85$135.90$165.92$148.77

Female Tobacco Use

$10,000 Coverage

AgeState FarmMutual of OmahaForesters FinancialRoyal Neighbors 
50$39.62$31.43$37.85$46.42
55$49.55$38.32$44.57$52.17
60$61.24$44.67$52.47$53.77
65$78.83$56.00$64.80$63.08
70$102.11$73.68$75.75$78.43
75$132.43$98.95$104.83$105.38
80$162.59$134.74$148.72$141.46
85$189.70$210.24$192.62

Male Non-Tobacco 

$10,000 Coverage

AgeState FarmMutual of OmahaForesters FinancialRoyal Neighbors 
50$36.00$29.16$32.00$39.66
55$43.73$35.09$36.86$46.32
60$52.89$42.76$45.19$50.11
65$67.40$55.76$55.75$58.80
70$86.20$73.70$72.91$74.78
75$115.10$99.53$102.69$110.40
80$159.20$132.66$146.74$153.80
85183.15$200.75$212.72

Male Tobacco Use

$10,000 Coverage

AgeState FarmMutual of OmahaForesters FinancialRoyal Neighbors 
50$46.17$36.89$45.45$51.80
55$59.04$47.27$55.10$60.99
60$73.80$59.02$64.93$67.47
65$95.91$78.99$84.89$83.00
70$121.97$106.76$109.52$110.40
75$144.66$143.47$161.04$156.99
80$174.03$193.47$217.66$206.32
85$279.59$290.70$286.71

Right Choice Or Wrong Choice?

Please note that the below items are contingent upon medically qualifying for this plan.

Right Choice:

  • Male age 76-80 who uses tobacco

Wrong Choice:

  • Female non-tobacco user
  • Female tobacco user
  • Male non-tobacco user
  • Male tobacco user 50-75
  • If you have any of the health complications listed above
  • If you are looking for more coverage than $10,000
  • Anyone under 50 years of age
  • Anyone over 80 years of age

As you can see there are very few times that you will be getting the best price available by going with this company.

State Farm Final Expense Review thumbs up thumbs down

Captive vs Independent

State Farm agents are captive meaning they can only sell carrier approved products. Thus, their products are only available through their captive agencies.

An independent agency is licensed to sell products from multiple carriers. This allows them to consider your needs, not just the needs of filling quotas. They are able to shop multiple products across multiple carriers to get the best product that fits your unique situation. 

As noted, other companies are more lenient when it comes to health and often offer a better price. An independent agency will be able to assist you in finding a potentially less expensive option that accepts your health complication.

Other captive agencies include AARP (NY Life), Colonial Penn, Lincoln Heritage, Globe Life, and John Hancock.

Willamette Life is an independent agency specializing in Final Expense and represent multiple well-respected carriers. We care that you get the coverage you want, need, and can afford with no quotas to fill for any one company.

Willamette Life strives to be a resource for those who are looking into coverage of end-of-life expenses and want to answer all of your questions!

Company History & Financial Stability

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 coined a few successful marketing catchphrases over the years with their attention-grabbing commercials. I’m sure you recognize at least one, if not all, of these…

“Life a good neighbor”

“Get to a better state”

“Here to help life go right”

The company as a whole is highly rated and is currently ranked 36 on the Fortune 500 list of largest companies. They are financially stable and able to fulfill their financial obligations like paying out claims.

They have an A++ rating 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 company offers other types of life coverage as well. For the purpose of this article, we only reviewed their $10,000 Whole Life policy but you can find more information on their website. It is, however, our understanding that the majority of their life offerings are overpriced compared to other companies that offer the same products. Just like anything, we encourage you to do your own research on this.

Final Thoughts

a. This plan is very restrictive with both coverage amount and acceptable pre-existing health conditions.

b. While they are a very reputable company, even if you qualify, they are not your most economical option for this specific industry niche.

c. Other companies offer much better pricing 99% of the time.

Jake Irving

Jake Irving
I’m the owner and founder of Willamette Life Insurance. Willamette Life specializes in Final Expense Insurance. We compare prices with different insurance carriers while finding the perfect match for your health and budget. This company was started to help educate the public on why Final Expense Insurance could be a great option for them and their family. We strive to be friendly, informative, and always have the client’s best interest as our top priority. Everything in this article is my own professional opinion and experiences I have had during my time in helping clients.

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