State Farm

State Farm is one of the most recognizable names in the North American insurance market. The company has been providing policies and coverage since its founding in 1922. While State Farm’s national presence typically focuses on its automobile and home insurance offerings, the firm also features a stand-alone life insurance company that includes burial and final expense options.

State Farm’s final expense insurance pays a fixed $10,000 death benefit directly to the listed beneficiary. Said beneficiary may use the $10,000 to assist in paying final expense, or in any other manner that he or she chooses. Coverage is available for ages 50 to 80. Premiums are guaranteed to never increase, and you may choose between monthly or annual premium payments. State Farm’s final expense policy is also eligible to earn dividends, though they are not guaranteed. Any accumulated dividends may be used to purchase additional insurance, to reduce future premiums, or be paid in cash to the beneficiary.

Why you need burial insurance

Did you know that the average cost of burial services in the United States is almost $10,000? Did you know that every year, burial service expenses increase on average of between five and eight percent? What’s more, these burial cost figures account for only the basic services provided by a funeral home. They do not include additional required expenses like cemetery fees, headstone fees, body transportation, or any optional services like flowers, compensation for lost work time, etc.

Burial insurance not only helps you or your loved ones meet rising funeral costs, but it also may benefit surviving family members in additional ways. Burial and funeral insurance pays in cash, which means that the beneficiary may spend the money in any way they choose. Burial and funeral insurance does not bind the beneficiary to any particular location, funeral home, or funeral type.

In summary, you should consider burial insurance if you:

• Have no life insurance coverage
• Have no cash or savings planned for funeral expenses
• You wish to absolve your family of funeral-related debt after you pass
• You prefer a separate final expense policy and life insurance policy

How it works

The cost of your burial insurance policy depends upon a number of factors, including the coverage amount, your age, your health, your location, and the company offering the insurance. Much like Medicare Part B health insurance or private health insurance, burial insurance plans typical feature a monthly premium and a predetermined amount of coverage. As an example, if you’re a 50-year old man in good health who lives in Georgia, you might expect to pay in the neighborhood of $50.00 per month for $10,000 worth of burial insurance. If you’re a 75-year old woman living in New York, your monthly premium will be significantly higher, both because of your age and the fact that the cost of living in New York is much higher. Keep in mind that these figures are only estimates. In some cases, medical underwriting or answering a simple questionnaire about your health could lead to lower rates.

How to get started

If you are already a State Farm insurance customer, you should contact your local office and inquire about a Final Expense policy. If you are a prospective customer, you can obtain a quote on State Farm’s website. You may also shop for policies using our comparison tool by clicking on the following link.

Financial Strength Ratings

AM Best – A++ (Superior), Stable outlook
Moody’s – AA1 (Not on watch), Stable outlook
Standard & Poor – AA, Stable outlook

Company contact info

State Farm Insurance
One State Farm Plaza
Bloomington, IL 61710
(800) 782-8332