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State Farm is a reputable insurance company, but its final expense coverage has some significant drawbacks.
Namely, everyone has a two-year waiting period for natural causes of death.
Learn the complete details about their coverage, crucial fine print, cost, pros & cons, and which companies have the best plans.
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How Does State Farm Final Expense Insurance Work?
State Farm final expense insurance is a guaranteed issue whole life policy.
There are no health or lifestyle questions to answer because approval is guaranteed.
Since approval is assured, there is a two-year waiting period.
State Farm will only refund 110% of your premiums if you die during the first two years.
Accidental death is the only exception to the waiting period provision.
If you die from an accident (even if the first two years), they will pay out the full death benefit.
Because it’s a whole life policy, it will last forever, and the premiums will never increase.
Additionally, it will build cash value which could pay dividends (not guaranteed).
Assuming you live for more than two years, State Farm will pay out the death benefit directly to your beneficiaries.
Your loved ones will get a tax-free check which they can spend on funeral costs, medical bills, debts, or any other end-of-life expenses.
If your family has leftover money, they get to keep it.
| State Farm Guaranteed Issue Final Expense Insurance Product Details | |
|---|---|
| Policy Type | Whole Life Insurance |
| Policy Duration | Forever |
| Premiums | Remain the same |
| Builds Cash Value | Yes |
| Higher Rates For Tobacco Usage | No |
| Medical Exam | No |
| Health Questions | No |
| Guaranteed Acceptance | Yes |
| 2-Year Waiting Period | Yes |
| States Available | All Except CA, FL, ND, NY, SD & WI |
| New Applicant Age Range | 45-80 |
| Coverage Options | $10,000 or $15,000 |
The Cost Of State Farm Guaranteed Issue Life Insurance
The cost of end-of-life insurance is generally a function of your health, gender, age, and how much coverage you purchase.
However, your health will not influence the price since State Farm’s final expense life insurance is guaranteed acceptance.
The exact price you pay is based only on your age, gender, and the amount of coverage.
Below are some sample monthly quotes.
| Age | $10,000 | $15,000 |
|---|---|---|
| 45 | F: $29.17 M: $34.10 | F: $40.71 M: $48.10 |
| 50 | F: $34.82 M: $41.38 | F: $49.18 M: $59.02 |
| 55 | F: $42.40 M: $51.26 | F: $60.55 M: $73.85 |
| 60 | F: $51.48 M: $63.41 | F: $74.17 M: $92.08 |
| 65 | F: $64.81 M: $80.86 | F: $94.16 M: $118.24 |
| 70 | F: $84.23 M: $103.62 | F: $123.30 M: $152.38 |
| 75 | F: $112.69 M: $136.17 | F: $165.99 M: $201.21 |
| 80 | F: $153.24 M: $176.17 | F: $226.82 M: $261.20 |
Pros & Cons Of State Farm Burial Insurance
- Guaranteed acceptance: State Farm will not decline you due to lifestyle or health history.
- Permanent whole life coverage: It’s whole life insurance that lasts forever and has a locked-in premium.
- Competitive pricing for guaranteed issue: Relative to other guaranteed issue companies, State Farm’s prices are fair.
- Best in class financial strength: State Farm is one of the nation’s oldest and most financially sound life insurance companies.
- Instant approvals: Applications are immediately approved because the policy is guaranteed issue.
- Trusted name: State Farm is a well-known entity that consistently earns high marks in customer satisfaction surveys.
- Money can be used for anything: It is a life insurance policy. That means the payout is cash directly to your beneficiaries. Your family can use the money for anything, and they get to keep any unused funds.
- Everyone has a waiting period: Since guaranteed issue burial insurance is all they offer, they don’t have any final expense policies that fully cover you from day one.
- Higher prices compared to other providers: If you need or want guaranteed acceptance coverage, many other insurance companies offer lower rates.
- No options above 80: If you need final expense insurance over age 80, State Farm cannot assist you.
- No options below 45: State Farm has no funeral life insurance options for people below 45.
- Guaranteed issue is not ideal for most: Most seniors who need final expense coverage can qualify for coverage that has underwriting. That leads to lower prices and no waiting period coverage. Sadly, State Farm only offers guaranteed acceptance final expense insurance.
- Not available in all states: They do not offer this coverage in CA, FL, ND, NY, SD, or WI.
- No online quotes or application: The State Farm website won’t show you rates or allow you to apply. You must verbally speak with a State Farm agent to get quotes or apply.
- Misleading website claim: Their website has “Instant coverage” listed as a benefit. Most consumers will interpret that to mean that there is no waiting period. All State Farm means by “Instant coverage” is that the policy becomes effective immediately (and still has the waiting period).
Should You Buy State Farm Final Expense Coverage?
While State Farm is a trustworthy company, its final expense insurance should not be the go-to option for most seniors.
For starters, most people, despite prior health issues, can qualify for final expense insurance that has underwriting.
Coverage requiring you to complete a health questionnaire will likely cost less than policies with no health questions.
In addition, plans with health questions (if approved) fully insure you 100% for natural or accidental death the day you make your first payment.
Sadly, State Farm only offers guaranteed issue life insurance. They have no immediate coverage final expense options.
Now sometimes guaranteed acceptance coverage is the only way someone can get a new life insurance policy issued.
For example, guaranteed issue is the only option for anyone wheelchair-bound, in a nursing home, on dialysis, or has dementia/Alzheimer’s.
State Farm won’t be the most superior choice if that’s your circumstance.
That’s because many other guaranteed issue providers (such as Mutual of Omaha or AAA) offer lower rates and more coverage.
The Best Final Expense Insurance Companies
When buying any form of life insurance, it’s essential to shop around.
Every company is different in terms of underwriting and cost.
The surest way to find the best funeral insurance policy is to work with an independent agency representing multiple providers.
Insurance companies like State Farm are known as captive insurers because they do not allow their agents to represent any other insurance company but State Farm.
Captive agents cannot connect you to another insurance provider if you don’t like what they offer.
On the flip side, independent agents can offer you any of the dozens of insurance companies they work with.
An independent agent will match you with whichever insurer is best, and their services cost you nothing.
With that out of the way, below are three excellent burial insurance companies to consider.
1) Mutual of Omaha
| Product Details | Policy Type: Whole Life Insurance |
| New Applicant Age Range: 45-85 | |
| 2-Year Waiting Period: No (subject to underwriting approval) | |
| Coverage Amount Range: $2,000-$40,000 | |
| States Available: All States (except New York) | |
| Product Benefits | Premiums Stay the Same Forever: Yes |
| Builds Cash Value: Yes | |
| Policy Duration: Lifetime | |
| Optional Riders: Accidental Death (2X the payout for accidental death) | |
| Application Details | Where to Apply: Agencies licensed to sell Mutual of Omaha products (you can't buy this plan directly from them) |
| Phone Number to Apply: 1-800-644-2926 | |
| Medical Exam Required: No | |
| Guaranteed Acceptance: No | |
| Application Approval Time: 10 Minutes to 2 Business Days | |
Common health conditions still eligible for no waiting period coverage: Aneurysm Arthritis Asthma Blindness Blood clots > 2 years ago Blood thinners Cancer > 4 years ago Circulatory surgery > 2 years ago Crohn’s disease Depression Diabetes (type 2) Diverticulitis Epilepsy Fibromyalgia Grave’s disease Heart attack > 2 years ago Heart surgery > 2 years ago Hepatitis A or B High blood pressure High cholesterol Scleroderma Seizures Sleep apnea Squamous/basal cell skin cancer Stroke/TIA > 2 years ago Tumors (non-cancerous) |
|
2) Aetna
| Product Details | Policy Type: Whole Life Insurance |
| New Applicant Age Range: 40-89 | |
| 2-Year Waiting Period: No (subject to underwriting approval) | |
| Coverage Amount Range: $2,000-$50,000 (varies by age) |
|
| States Available: All States (except New York) | |
| Product Benefits | Premiums Stay the Same Forever: Yes |
| Builds Cash Value: Yes | |
| Policy Duration: Lifetime | |
| Optional Riders: Accidental Death (2X the payout for accidental death) |
|
| Application Details | Where to Apply: Agencies licensed to sell Aetna products (you can't buy this plan directly from them) |
| Phone Number to Apply: 1-800-644-2926 | |
| Medical Exam Required: No | |
| Guaranteed Acceptance: No | |
| Application Approval Time: 15 Minutes-3 Business Days | |
Common conditions still eligible for no waiting period coverage: Afib Aneurysm (if surgically repaired) Arthritis Asthma Bipolar disorder Blindness Blood clots Blood thinners Cancer > 2 years ago Chronic bronchitis Circulatory surgery > 2 years ago COPD Crohn’s disease Depression Diabetes (type 1 or 2) Diabetic coma > 2 years ago Diverticulitis Epilepsy Fibromyalgia Graves’ disease Heart attack > 1 year ago Heart surgery > 1 year ago Hepatitis > 2 years ago High blood pressure High cholesterol Insulin shock > 2 years ago Lupus Multiple sclerosis Obesity Over 85 life insurance Pacemaker (installed > 1 year ago) Parkinson’s disease Sarcoidosis Schizophrenia Scleroderma Seizures Sleep apnea Squamous/basal cell skin cancer Stroke/TIA > 1 year ago Tumors (noncancerous) |
|
3) Transamerica
| Product Details | Policy Type: Whole Life Insurance |
| New Applicant Age Range: 45-85 | |
| 2-Year Waiting Period: No (subject to underwriting approval) | |
| Coverage Amount Range: $1,000-$50,000 (varies by age) | |
| States Available: All States | |
| Product Benefits | Premiums Stay the Same Forever: Yes |
| Builds Cash Value: Yes | |
| Policy Duration: Lifetime | |
| Optional Riders: Accidental Death (2X the payout for accidental death) | |
| Application Details | Where to Apply: Agencies licensed to sell Transamerica products (you can't buy this plan directly from them) |
| Phone Number to Apply: 1-800-644-2926 | |
| Medical Exam Required: No | |
| Guaranteed Acceptance: No | |
| Application Approval Time: 15 Minutes- 5 Business Days | |
Common conditions still eligible for no waiting period coverage: Afib Angina (chest pains) Aneurysm (if surgically repaired) Arthritis Asthma Bipolar disorder Blindness Blood clots Blood thinners Cancer > 4 years ago Chronic bronchitis Circulatory surgery > 1 year ago COPD Crohn’s disease Depression Diabetes (type 2) Diverticulitis Epilepsy Fibromyalgia Grave’s disease Heart attack > 1 year ago Heart surgery > 1 year ago Hepatitis High blood pressure High cholesterol Kidney disease (no dialysis) Lupus Multiple sclerosis Pacemaker (installed > 1 year ago) Parkinson’s disease Schizophrenia Scleroderma Seizures Sleep apnea Squamous/basal cell skin cancer Stroke/TIA > 1 year ago Tumors |
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State Farm earned 2 stars out of 5 for overall performance. Choice Mutual’s ratings are determined by our editorial team. The scoring formula considers consumer experience, complaint data from the National Association of Insurance Commissioners, and financial strength ratings.
Learn about our rating methodology.