State Farm Life Insurance

[Newby]

Does State Farm have a no-lapse guaranteed UL?

I see a LOT of their UL policies out there and they are priced higher than whole-life policies are. Even if there is a no lapse guarantee I would never take that over whole-life if there is no cost savings but if there isn't one...that's a REAL bad deal.

I called a few State Farm agents in 5 different areas to ask about their life insurance and in ALL five conversations they were saying completely wrong information and obviously had NO idea of how UL or whole-life work.

All 5 agents painted such a rosy picture of UL that a consumer would be greatly mislead (and later screwed) by their presentation.

I think 20/20 could do an excellent show about this BUT of course that would just damage the whole insurance industry.

 

[NMFNMDRT]

Most of those agents should just stick to P&C. Of course, the investment brokers say that about life insurance agents as well.

UL can be very dangerous, and yes they do paint a very nice picture of it. It is misleading, and it seems like they only sell it because they have a quota to do so. I'd be willing to bet a very large percentage of their training is built around the P&C market and customer service.

 

[dgoldenz]

They also sell people absolute junk Assurant health insurance policies. One of my clients signed up last year with a SF agent for an Assurant policy and just had it rescinded about two weeks ago...agent didn't even ask any health questions on top of selling a crap policy. Double whammy.

I have my car insurance through SF and they do a great job on the P&C side...but most of them probably know about as much about health and life insurance as I do about P&C.

 

[JRoot]

Check their website - It looks like they don't have a no lapse UL.

State Farm
(they list their products after the first screen or 2)

 

[JFBAgent]

I was redoing my car insurance at SF and the local agent is the big office in town. He told me he is the largest producer for life insurance for SF in NE Wisconsin and he attained it by doing 30-40,000 in premium last year. He also confirmed that 80% of his time is P&C, so he has 20% left for annuities, mutual funds, life insurance, etc.

I recently sold an Hancock LTC to a client with annual premium of $4,000. Client decided to check with SF one day before we did the app. The SF agent ran the exact same benefits and showed him a proposal for a premium of $10,000 a year. I imagine their life insurance has to be equally disturbing.

 

[BNTRS]

Yeah, definitely not their strong point. They have had a good reputation for 10 pay WL.

It's an add on sale for them though. 100k in db here, 50k there kind of thing.

They do, however, sell more individual life insurance policies in the U.S. than any other life insurer. Look at all that replacement opportunity

 

[KJ in Miami]

Nope - 3 yrs working for a SF Agent

 

[VolAgent]

Now we know where the love for FIAs comes from. State Farm has a B/D that is firmly against them. Its amazing how you can always find a kool-aid pusher behind such thoughts.

 

[KJ in Miami]

Now we know where the love for FIAs comes from. State Farm has a B/D that is firmly against them. Its amazing how you can always find a kool-aid pusher behind such thoughts.

I do not work there anymore - I do not like FIA's because of many reason... being a "kool-aid" pusher is not one of them! Why do you like them so much?

 

[VolAgent]

I do not work there anymore - I do not like FIA's because of many reason... being a "kool-aid" pusher is not one of them! Why do you like them so much?

Actually, I'm ambivalent about them. They are just another tool. Certainly some bad ones out there, just like VAs and FAs. I do believe that just about every VA with a rider could be replaced by a FIA and the client would be just as happy, if not happier. But that is more about punting FINRA than whether a FIA is better, worse or equal to a VA.