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State Farm is a reputable insurance company, but its final expense coverage has some significant drawbacks.

Learn the complete details about their coverage, crucial fine print, cost, pros & cons, and which companies have the best plans.

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.

Tip:

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 TypeWhole Life Insurance
Policy DurationForever
PremiumsRemain the same
Builds Cash ValueYes
Higher Rates For Tobacco UsageNo
Medical ExamNo
Health QuestionsNo
Guaranteed AcceptanceYes
2-Year Waiting PeriodYes
States AvailableAll Except CA, FL, ND, NY, SD & WI
New Applicant Age Range45-80
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
45F: $29.17
M: $34.10
F: $40.71
M: $48.10
50F: $34.82
M: $41.38
F: $49.18
M: $59.02
55F: $42.40
M: $51.26
F: $60.55
M: $73.85
60F: $51.48
M: $63.41
F: $74.17
M: $92.08
65F: $64.81
M: $80.86
F: $94.16
M: $118.24
70F: $84.23
M: $103.62
F: $123.30
M: $152.38
75F: $112.69
M: $136.17
F: $165.99
M: $201.21
80F: $153.24
M: $176.17
F: $226.82
M: $261.20

 

Pros & Cons Of State Farm Burial Insurance

The Good
  • 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.
  • 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.
The Bad
  • 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 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.

Tip:
If you need final expense insurance, call us at 1-800-644-2926. We can likely get you an immediate coverage policy.

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

Founding Year: 1909
A.M. Best
A+
Superior
BBB
A+
99-100
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-$50,000
States Available: All States (except New York)
Product
Benefits
Premiums Stay the Same Forever: Yes
Builds Cash Value: Yes
Policy Duration: Lifetime
Accelerated Death Benefit: This free rider is automatically included. You can access the full death benefit while alive if the insured has a terminal illness or is under nursing home confinement.
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

Founding Year: 1853
A.M. Best
A
Excellent
BBB
A+
98-100
Brochure Sample Policy Sample Application

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
Accelerated Death Benefit: This free rider is automatically included. You can access the full death benefit while alive if the insured has a terminal illness that is expected to cause death within 12 months.
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

Founding Year: 1904
A.M. Best
A
Excellent
BBB
B
84-100
Brochure Sample Policy Sample Application

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
Accelerated Death Benefit: This free rider is automatically included. You can access the full death benefit while alive if the insured has a terminal illness that is expected to cause death within 12 months.
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
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

 

Frequently Asked Questions

State Farm’s final expense policy has a two-year waiting period for natural causes of death. If you die in the first 24 months, they will only refund 110% of your premiums. After two years, the full death benefit is payable.

State Farm burial insurance costs anywhere from $29-$261 depending on your age, gender, and how much coverage you buy. Most other final expense insurance companies offer lower prices.

State Farm does not require you to answer medical questions or undergo a medical exam. They guarantee your acceptance. Remember that in exchange for guaranteed approval, there is a two-year waiting period before you’re insured for natural causes of death.

The proceeds from a final expense life insurance policy can be spent on anything. That includes funeral expenses, medical bills, outstanding debts, or anything. Furthermore, your beneficiaries get to keep any leftover funds.

In most states, State Farm only lets you choose from $10,000 or $15,000 in coverage.