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Question about Life insurance companies?

I was wondering if State Farm life insurance was good. I currently have State Farm car and renters insurance from them. I was also curious about Gerber Life insurance for adults. Is it good insurance?

Public Comments

1. Gerber Life is for children, I think. State Farm does have good life insurance just like most of the big companies do. If you have your other insurance with State Farm, then you should get your life insurance there too. Good advice for anyone is to keep all your insurance in one company to get as many discounts as you can. Since you already have other policies with them you will not get any added discounts. However, you should still get the policy with them. Ask for some quotes for term policies, like Select 20 which is cheap and gives you level payments for 20 years. Don't let them talk you into a whole life or universal life plan. It is a rip off. If you want to invest some money ask about a 401K or IRA. The problem with Universal life insurance is that it is also part term and part whole life. On universal life insurance the cost of the insurance goes up each year as you get older. It is just like term. The variable life is probly the same way.
2. Stay away from the Gerber thing - its a bad deal. See an independent insurance agent and get some real quotes. The on-line stuff is mostly misleading crap.
3. State Farm does have some good life insurance products (they're actually coming out with a new one next month called and equity-indexed Universal Life policy....really cool stuff). They also sell products through another company called Phoenix Life Insurance which sells some really amazing policies too. One called the Joint Edge can insure a married couple on one policy. It's a Variable Universal Life policy, so you'd have to be comfortable with some market exposure, but they just updated so that your policy is guaranteed for 20 years even if your investments perform poorly...really cool. It's also usually just slightly more expensive than buying two term policies (one for each spouse) plus it's permanent so you don't lose the policy or prices don't increase after any set period of time. State Farm and Phoenix Life both have very strong financial ratings as well. Neither have suffered from the recent credit crisis. Don't listen to car when he/she tells you to stay away from whole/universal. You may not need it, and you should have an honest discussion with your agent to determine if you do. Tell them about your needs for the insurance (amount of death benefit you need, how long you need is, what your budget it) and they will find the correct policy or combination of policies FOR YOU. Each person is different, some people have a need for term life, some have a need for permanent life....but if you do buy permanent life, do not buy it as an investment because a tax-qualified retirement plan or standard mutual funds would almost certainly perform better. If you decide you need permanent life buy it because you need a policy that will not fluctuate in premiums for the rest of your life...the cash value is a bonus. So talk to your agent, see if they offer something that works for you and if so, go with it. Life insurance is a very important part of every family's financial plan. Good luck.
4. State Farm is solid. Gerber is ALSO an A rated company. With life insurance, it isn't so much about the company, as any A rated carrier is pretty much as good as the next. It's about the PRODUCT. You need to compare the PRODUCTS, the rates, the riders, etc, to see which one best suites your NEEDS. So define the GOAL of the insurance, before you even try to buy.
5. I agree with the answers about ratings. State Farm is a very solid company. Typically, if you have multi lines with them, you can get discounts with each policy added, but you'd have to check with your agent on their specific policy. The ratings tell you about how strong the company is financially; you want a strong company because that means that they are in a better position to pay claims and meet their bills, just like you and I have to each month. I disagree with someone telling you to flatly not consider anything but term insurance (the answerer who said don't let them sell you whole life or universal life)! That's a really stupid thing to do. You need to consider WHY you want the insurance. If it's for a death benefit to someone, then it might be a good idea to get permanent insurance like whole life, which had guaranteed premiums and a guaranteed death benefit pay out. Term life only has guaranteed premiums for a period of TIME, after which, the premiums increase drastically. Ask them to show you on the illustration ... I bet you'll see the jump for the renewal. Most people will cancel then and get a new policy, but guess what? You're older, and it will cost more to start a new policy. Term is cheap only initially. Also, only use this strategy if you're ACTUALLY GOING TO INVEST the difference and let the rest of that money you're saving by buying term go to increasing your wealth. However, most people fail to do that. Some things to keep in mind ...