State Farm Burial Insurance Review [Quality, Service & Rates]

Regardless of the sentiments, planning your funeral before you shut your eyes in death is a great way to be buried gracefully- especially if you’re not related to Elon Musk.

Dying is expensive, but good burial insurance can help avoid those expenses. Tons of insurance companies offer unique burial insurance policies, and State Farm is part of the top 1% that seemingly offers the best burial insurance.

Before you invest in it, check out this detailed State Farm’s burial insurance review. We’ll expose the intricacies of the State Farm’s burial insurance policy, so you’ll make an intelligent decision.

Keep reading!

Can I Trust State Farm Insurance?

Yes, you can trust State Farm Insurance. If this is your first contact with State Farm insurance, it’s not surprising that you’d want to check their credibility before learning about their insurance policy.

We understand that a simple “yes” might not be enough to convince you to trust them. That’s why we curated this section. Let’s explore some basic information about State Farm’s Insurance before checking out their product.

Although you might not have heard of State Farm before now, they’ve been around since 1922 and have since grown into a household name in the United States and Canada.

They’re known for offering insurance of any kind, from vehicle insurance to home and property, health and disability, Small business, and Life insurance. State Farm currently ranks second on the list of popular insurance companies in the United States.

When it comes to public opinion about the company, the YouGov survey posits that 60% of Americans view the company positively. Based on reviews, most customers are generally pleased with their products.

State Farm has a solid financial standing. A sneak peek into their 2019 life insurance report reveals they have a $5.5 billion premium income and a $578 million policyholder dividend. In 2019, they conjured a net income of $673 million.

Furthermore, AM (the top rating that confirms insurance companies’ stability and financial standing) awarded State Farm an A++ to certify their financial status. Aside from that, S&P Global Ratings further confirms State Farm’s financial status by rating them as “AA” after successfully conducting financial research and analysis of its financial assets.

It’s not surprising that they have that much financial strength because they’ve been in the game long enough to attain such robust financial status.

In conclusion, State Farm is a legitimate insurance company with rock-solid financial strength. When you trust them with your money, they won’t go bankrupt or fold up in the nearest future.

State Farm’s Insurance Rating

First-day coverage: 5/5

AM rating: A++

Coverage amount: 3/5

S&P Global Rating: AA

Customer Satisfaction: 4/5

Public Opinion: 4/5

Pricing: 2/5

About Final Expense Policy From State Farm

State Farm offers some life insurance plans, and the final expense insurance- or burial insurance- is a subcategory under the whole life insurance policy. This insurance policy aims to lift the burial expense burden off the shoulder of the client’s family and loved ones.

The maximum amount you can get under this insurance policy is $10,000, which isn’t bad because the cost of burial rituals in the United States is roughly $9,500 on average.

However, almost every insurance company that operates the burial insurance product has $10,000 as its maximum. So, how’s State Farm’s burial insurance policy any different from other insurance companies versions of the product?

We’ll unravel some of State Farm’s burial insurance uniqueness in the following sections.

Features Of State Farm Final Expense Insurance

Check out some of the features of State Farm final expense insurance.

No Waiting Period

The first feature of State Farm’s final expense policy is its no-waiting period policy. A waiting period- a qualifying or eliminating period- is when an insured has to wait for a while (sometimes 2 years) to access the full or some insurance benefits.

In reality, the waiting period puts the end-users at a disadvantage. Lucky for you, State Farm does not attach waiting periods to their final expense insurance.

That means you’ll have full access to all the final expense policy benefits when you get approved.

No Medical Exam

Another feature of the State Farm final expense policy is that you won’t need to write a medical examination to access this insurance policy.

State Farm’s agent would ask you specific health questions to determine how you fit into the insurance policy.

Availability

Although State Farm’s final expense policy is available in most states in the United States, they do not offer this policy in Rhode Island and Massachusetts.

Eligibility

State Farm has a specific target audience for its insurance policy like other insurance companies. The company’s burial insurance is targeted at people within the age bracket of 50 – 80 years old.

However, the age limit reduces for New York residents- it ranges from 50 to 75. Note that the policy is life-long and doesn’t expire regardless of the age you gave up the ghost. If you’re eligible for this policy, you can keep paying your premium until you are 100 years old.

No Usage Restriction

There is no restriction on how your beneficiary can use the death benefit. So, when your beneficiary collects the benefit after your death, they can use it for a different purpose other than your burial.

No law mandates your beneficiary to channel the death benefit from this insurance policy into your burial when they receive it.

Level Premium And Death Benefit

Your insurance premium won’t increase as you continue to pay the specified amount.

With regards to your death benefit, it won’t decrease. But you have to pay your premiums when required, with no delays.

What Are The Pros?

No waiting period.
No medical exam.
The insurance payment is fixed.
This insurance policy lasts for a lifetime.
Tax-free cash value.
Policyholders can earn interest and accumulate dividends.

What Are The Cons?

Diabetic individuals would be declined- regardless of the diabetes type they suffer or are suffering from.
Coverage amount is low- $10,000.
Age limits.

State Farm Burial Insurance Sample Rates

State Farm offers its policy at varying prices based on certain factors. These factors include your Sex and smoking habit. For instance, if you’re a female, you’ll get this policy at an affordable rate.

The reason is, based on statistics, women tend to live longer than men. They are also less likely to become a financial risk to the insurance company. Tobacco users pay the highest amount for this State Farm’s insurance policy.

Nevertheless, your age primarily determines the premium amount you’ll be required to pay. Here’s the price quote from State Farm to acquire their final expense insurance. Note that State Farm defines Tobacco users as people who have consumed nicotine or tobacco within 12 months.

Price Quote For Females (Non-Tobacco & Tobacco Users)

Ages	Non- Tobacco Users (Appx. Value)	Tobacco Users (Appx. Value)
Age 50	$28	$32
Age 51	$29	$33
Age 52	$30	$35
Age 53	$32	$37
Age 54	$33	$39
Age 55	$35	$41
Age 56	$36	$42
Age 57	$37	$44
Age 58	$39	$46
Age 59	$41	$49
Age 60	$42	$51
Age 61	$44	$54
Age 62	$46	$57
Age 63	$48	$60
Age 64	$51	$64
Age 65	$54	$67
Age 66	$56	$70
Age 67	$60	$74
Age 68	$63	$79
Age 69	$67	$83
Age 70	$72	$89
Age 71	$77	$95
Age 72	$83	$101
Age 73	$89	$109
Age 74	$94	$114
Age 75	$98	$118
Age 76	$106	$123
Age 77	$114	$129
Age 78	$121	$134
Age 79	$129	$141
Age 80	$137	$147

Price Quote For Males (Non-Tobacco & Tobacco Users)

Ages	Non-Tobacco Users (Appx. Value)	Tobacco Users (Appx. Value)
Age 50	$33	$43
Age 51	$35	$45
Age 52	$36	$47
Age 53	$38	$49
Age 54	$40	$51
Age 55	$42	$53
Age 56	$43	$55
Age 57	$45	$57
Age 58	$48	$59
Age 59	$50	$62
Age 60	$53	$66
Age 61	$56	$71
Age 62	$60	$75
Age 63	$63	$80
Age 64	$67	$86
Age 65	$71	$91
Age 66	$74	$95
Age 67	$78	$100
Age 68	$83	$106
Age 69	$87	$112
Age 70	$91	$116
Age 71	$97	$121
Age 72	$104	$126
Age 73	$112	$130
Age 74	$117	$135
Age 75	$124	$140
Age 76	$129	$146
Age 77	$135	$151
Age 78	$141	$158
Age 79	$148	$164
Age 80	$155	$171

State Farm Underwriting

Every life insurance company always sets standards that prospective customers should meet before qualifying for their insurance products. It’s the same with State Farm.

While State Farm’s insurance offers benefits like “no medical examination,” there are criteria that prospective customers must fulfill to purchase their insurance policy- especially their final insurance policy.

If you don’t meet the criteria that qualify you for the final expense product, they’ll decline your application.

Although they won’t require you to take a medical examination, State Farm would subject you to a three-scrutiny system that includes a health questioning stage, the Medical information bureau report stage, and the evaluation of your prescription history.

Health Questions

There are certain medical conditions that State Farm cares about. If you’ve been (or are) a victim of some medical condition, your application won’t be approved.

Below is the health question State Farm would ask you to determine your eligibility, aside from your age. If your response to these highlighted questions is “yes,” your application would be disapproved.

They’ll ask you if State Farm has ever graded you or disapproved your life insurance application before.
State Farm would further ask if you’ve ever had or have suffered from Dementia or Alzheimer’s, Dialysis, Huntington’s disease, HIV/ AIDS, Heart defibrillator, ALS also Lou Gehrig’s disease, Hepatitis A, B, or C, Muscular dystrophy, Multiple sclerosis, Cirrhosis, or Parkinson’s disease.
They would also ask if you’ve had to amputate any part of your body because of a disease. You’ll also have to let them know if you’ve undergone a tissue or organ transplant before.
They’ll ask if you’ve had or have been treated for some diseases 3 years prior to applying for their insurance policy now. Some of these diseases include Cancer and tumor of any type, diabetes, any level of stroke, heart or circulatory system-related issues like heart attack, Nervous or mental disorders like depression, chronic bronchitis, emphysema, or COPD, or Kidney diseases. They’ll also ask if you’ve undergone drug abuse or alcohol treatment.
Another question they’ll ask is to figure out your current medical condition. State Farm would decline your application if, at the time of applying, you are bedridden, receiving health care in your home, admitted in a nursing home or hospital, need help to carry out basic tasks like taking a bath or medication, grooming yourself, having your meal, using the toilet, rely on a wheelchair, require oxygen to breathe properly.

Medical Information Bureau (MIB) Report

This stage requires State Farm to request your history of life assurance application results. It carries the history of your life assurance applications within the last six months. State Farm would only have access to this record because you’re applying to get their final expense life insurance.

This report would also contain your response to the health-related questions you were asked when you applied to another company’s insurance policy. So, if your answer to State Farm’s health questions doesn’t tally with what’s in the report, they’ll decline your application.

Evaluation Of Prescription History

Trust me; you can’t precisely fool State Farm with your application. If you lie in the health-related questions, they’ll find out through an evaluation of your prescription history. This check requires them to go through your list of prescribed medications.

It reveals the medication you’re currently taking to treat a medical condition and the medication you’ve taken before.

If the medication prescription you’ve taken indicates a medical illness that they do not support, they won’t approve your application. State Farm often conducts this check electronically.

In summary, State Farm operates strict underwriting. You either qualify for the burial insurance, or you don’t.

Application Process

One of the easiest things about State Farm’s burial insurance policy is the application process. It follows a division of labor technique where you and State Farm’s agents have a role to play.

To eliminate your chances of getting confused during the application process, their agent would handle things like your eligibility and your premium. They’ll also craft the best plan for you.

Your part in all these is to provide the correct information so they can customize the policy to fit your needs. You’ll also need to decide your beneficiary- a funeral home or your loved one. The choice is yours.

After you’ve successfully passed the checks, State Farm’s agent will submit your application and reach out to you once approved.

Your first payment activates the policy, after which it would be delivered to you within 7-10 business days after the first policy draft date. Viola! That’s how the application process works.

Payment Option

The payment option for the final expense policy from State Farm is smooth and flexible. But while they might offer different payment options, we recommend that you only use two payment methods- Savings and Checking accounts.

We don’t recommend other payment methods like debit or credit cards, cash, direct express, Cashier’s check, or money order as they are not entirely secure.

As regards payment frequency, State Farm accepts both monthly and annual payments. But we’d advise that you stick with the Monthly payment because it’s easier to stay committed to your premiums when you pay in bits. It encourages consistency.

When Is The Insurance Worth IT?

It’s okay to opt for insurance companies that benefit you and your needs just as you fulfill their criteria. If you fit the bill and are looking for a sign to invest in State Farm’s final expense policy, here is a sign.

State Farm designed its burial expense policy to benefit its customers financially. As a mutual insurance company, they make it possible for their customers to accumulate dividends and earn interest in the process. The dividends are usually enough to pay your premium in the next month.

When Is The Insurance Not Worth It?

Although State Farm’s insurance affords you the luxury of benefiting from accumulated dividends, it’s a terrible option for you if you fall into the following category;

If you are (or you’ve suffered) a victim of the illnesses highlighted in the underwriting section.
If you’re looking for a final expense policy that offers up to $10,000 in coverage.
If you’re older than 80 or younger than 50.

Should I Get State Farm Funeral Policy?

There is no permanent response to this question. The reason is that State Farm’s burial policy favors a specific group of people. If you meet all the criteria required to qualify for this policy, you should consider the offer. But it would help if you asked the critical questions.

Does it satisfy your needs? Is the cost of acquiring this policy from State Farm worth the coverage and death benefits? Do you think the $10,000 coverage is enough for you?

If you’d like to buy this policy but with higher coverage, check out available alternatives. Ensure it fits your budget, fulfills your needs, and you qualify for it.

Other State Farm Products

State farm’s insurance offers other life insurance products. They offer flexible and beneficial home and auto insurance. In total, State farm offers 10 different life insurance policies that address the needs of its target audience.

For starters, they have term insurance assigned to give their customers death protection for a stipulated period. There’s also the whole life insurance policy that lasts for a lifetime. This policy includes a saving component.

Universal life insurance is flexible as customers can change the policies. These three policies have subcategories. The Final expense falls under the whole life insurance.

FAQs

Can You Use Final Expense Coverage To Preplan A Funeral?

Yes, you can use final expense coverage to preplan a funeral. But it’s not exactly the best choice for preplanning funerals. The best option would be to preplan your funeral with a funeral home.

But you can work with the burial insurance policy to preplan your funeral. List the funeral home as your beneficiary and make arrangements with them regarding the casket, headstone, and other funeral details.

Is There A Waiting Period?

There’s no waiting period for State Farm’s final expense insurance. You’ll have to go through scrutiny.

They’ll approve your application if you successfully pass all their background checks and believe you qualify for the final expense insurance. If not, they’ll instantly decline your application.

Who Owns State Farm?

State Farm’s Insurance is a subsidiary under the parent company State Farm Mutual Automobile Insurance Company that oversees different types of insurance in the United States.

The CEO of State Farm Mutual Automobile Insurance Company is Michael L. Tipsord. Some other subsidiaries under the State Farm Mutual Automobile Insurance Company are State Farm General Insurance Company, State Farm Life and Accident Assurance Company, State Farm Fire and Casualty Company, etc.

What Are Some Excellent State Farm’s Alternatives?

Other good final expense companies are Mutual of Omaha, Americo, AIG, The Baltimore life, Prosperity life group, Foresters Financial, Aetna, etc. The best part about these companies is that many operate a no-waiting list policy.

Conclusion

Generally, State Farm’s burial insurance is not a bad deal. It has its pros and its cons as well. For instance, it mutually benefits both the company and you. You’ll gain interest on accumulated dividends and other death benefits.

They operate a “no medical examination” and “no waiting period” policy. However, in reality, this policy favors some people more than it favors others in some ways, like coverage amount, health conditions, Sex, and age. Only opt for this plan if it entirely fulfills your needs.