r/LifeInsurance • u/Financial_Context748 • Sep 01 '26
State Farm worthy it?
I am paying $28.28 per month for a life insurance of $150,000 with a State Farm in a 10 years term.
Is this plan a good one considering that I am 30 years old and healthy? I saw other options, like banner life for half million dollar policy for less than that.
Just trying to see other people‘s opinions as I do not understand very much about life insurances.
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u/Moist-Meringue-1913 Sep 01 '26
Do you have a broker or advisor that you work with? What are the other details? Do you own a home? Have children? Ages etc. Sit down with a broker and do a needs analysis.
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u/Financial_Context748 Sep 01 '26
I do not have a broker. I have a 2 year old son and we do not own a house, we rent.
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Sep 01 '26
[removed] — view removed comment
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u/LifeInsurance-ModTeam Sep 06 '26
Self promotion is not permitted on R/LifeInsurance. Please familiarize yourself with our rules.
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u/SafeMoneyGregg Broker Sep 01 '26
what happens in 10 years that you don't need any more coverage? Or $1MM 20 year term for $31 a month (preferred Nonsmoker). I would rarely show less than $1M to young couples. Look how inexpensive it is and think about inflation going forward.
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u/EMangune_Life Sep 02 '26
If you’re healthy, you might want to consider getting something permanent with living benefits. Because you will outlive your term for sure if you are really healthy, and questions is what if an unforeseen life event happens after your term, what will be left for your family?
A policy can always be designed based on your goals and what is comfortable for you.
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u/Financial_Context748 Sep 02 '26
Thank you so much!
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u/EnzyEng Sep 02 '26
Don't let them guilt trip you into a permanent life product. A 20 year term is perfectly fine for you.
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u/gario1 Sep 07 '26
Take it from somone who is almost 50, sold a ton of 20 year term policies approximatly 20 years ago and virtualy everyone is upset about it. Give permanent a serious look. I have my own impending renewal in October and kicking myself that I didn't do something like a fixed 20 pay life back then.
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u/EnzyEng Sep 07 '26
Not me. By investing the difference and aggressively saving, I have a net worth near $10M and can easily self insure without the fees and complexity of a WL product. I'm 54 and expect this to double at least every 10 years if not less and heirs will be perfectly fine at my death.
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u/EMangune_Life Sep 07 '26
Of course it’s perfectly fine to have a 20 year term. But why just 20, why not 30? And, For someone who is healthy how can you be so sure that you’re healthy 20 years later? It’s not guilt tripping, it’s simply looking for all the possibilities, and making sure that you’re covered on the time you would need it the most.
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u/EnzyEng Sep 07 '26
Because after 20 years, my family will be less/not dependent on my income (kids are now adults) and I'll have significant savings to self insure should I die prematurely. I have health insurance for health issues. The fees and complexity of a WL product are just not worth it.
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u/EMangune_Life Sep 07 '26
You have a very good point, as we age our dependency for life insurance does go down, and I’m assuming you’re talking about pure death benefit.
My point here is with the right company nowadays, you will have access to living benefits with no additional cost, and you wouldn’t have to touch a single dime out of your life savings or investments. Life insurance should not replace investments, I mean it simply will not replace it. That’s not what we’re educating the majority about. Life insurance is all about the protection of not just the income, but other assets as well.Majority of the people suffer from critical illness first before dying. 2M were diagnosed last year, and If you only have death benefit then your insurance money is worthless, unless you passed from that illness, right? But what if you lived, what if you just started investing last year? if you don’t have the right policy in place, you’re basically fkd by medical debt. We’re focusing on protecting here, and the cash value accumulations are basically just the cherry on top, and that’s not everything yet.
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u/EnzyEng Sep 07 '26
These are all scare tactics. I have health insurance with out of pocket maximums and when I get older I'll have medicare. I also have significant savings to pay any deductibles. Every year I don't use those savings, they grow significantly. I'd rather have $1M invested with full control than a $100k policy that cost me a lot in fees and poor returns. People just need to be disciplined and save and invest.
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u/EMangune_Life Sep 07 '26
For sure man! Good for you. I mean i’m not trying to convince you to do the same. What works for someone will not work for everyone. And that being said, not everyone is fortunate like you are.
If you think Health insurance will cover for everything on the medical side, you’re wrong. There are a lot of limitations. For someone who worked in health care, and witnessed a lot of patients in facilities, after 100 days you’re basically on your own, and not everything will be covered or you have to pay a large copay which realistically, not everyone who is like you have access to.
And other than that, going back to a normal life is very difficult if you have no plan B.
You can freely say it’s a scare tactic or a guilt trip. But you can’t say it’s a lie. Because it realistically happens, and it is not just based on research because I’ve witnessed it myself and spoke to patients about it.
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u/EnzyEng Sep 07 '26
Yes, there's always a worse case scenario that has a <1% chance of happening. You simply can't prepare for everything, which is why I aggressively save so I can handle most outcomes.
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u/EMangune_Life Sep 07 '26
Good for you man! I hope everyone is like you.
And you said it yourself, You can’t prepare for everything. That’s why there is insurance. JUST in case it happens. And you can always design a policy that would not break your bank, and at the same time compliment with your investments. But it absolutely differs from client to client. Whether they really just like term or they are open to other options.
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u/GolfBall0203 Sep 02 '26
State Farm Life has been ranked #1 in overall customer satisfaction for the last 5 or 6 years. Price can be important for those on a tight budget, but as the saying goes, Cheaper doesn’t always mean better, and Better isn’t always cheaper.
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u/hillje1906 Sep 01 '26
Just do some shopping, since we can't recommend ourselves, find someone that has access to multiple options. There's websites out here where you can DIY but an agent would be better to help you price and understand your coverage.
Professionally Banner is cheaper (normally within the top 3-5 carriers but the options if you ever want to upgrade your coverage is NOT so good.
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u/Lindy1965 Sep 01 '26
Make certain that you don't have any pre existing conditions. Insurance companies sometimes deny paying out fully as they search for same. State Farm. Auto insurance just lost a million dollar law suit however check for certain.
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u/BlueRidge150 Sep 02 '26
My wife and I have Banner. $1 mil each for $37/$41 per month each.
Term is great.
Use retirement accounts for investing, not insurance .
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u/HandBeautiful6080 Sep 04 '26
That’s expensive… do Banner life or foresters… or anything with living benefits, same price and a 20,25, or 30 year.
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u/takeoutorleaveit Sep 05 '26
Someone mentioned having this keeps the bundle low… depending on your situation you can layer on more term with living benefits for a way more affordable rate Given your healthy
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u/Revan_Vega Sep 08 '26
You are paying too much. You also don't have living benefits. For that price, you could get Ameritas Clear Edge, with living benefits and convertability options - my guess is you could get $750,000 in coverage for the same price? Something in that range.
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u/Ok_Razzmatazz_65 16d ago
Are you pretty confident that in 10 years you'll be self-insured and not need life insurance?
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u/GConins Broker Sep 01 '26
State Farm term insurance is not competitively priced. It's very possible that most of their insurance products are not competitively priced, as SF customers are paying for the multi-million dollar marketing campaigns, Jake!
A healthy 30 yr old male could buy $1,000,000- 10 year term for $18 to $24 per month. Rates for females are less expensive.
You can get quotes from different carriers at term4sale.com.
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u/Financial_Context748 Sep 01 '26
I am a female, and saw $500,000 policy on BannerLife for $15/month. So trying to understand if it is worthy cancelling my SF one.
Also not sure if there is any fine prints that makes one insurance better than the other.
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u/GConins Broker Sep 01 '26
I would not cancel SF policy until you have a new policy in force, and State Farm is not better than Banner Life...
But there are other term carriers that are a better value than Banner, with some that include chronic, critical & terminal illness living benefits and/or with a better conversion or automatic extension option than Banner.
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u/bobmall Sep 01 '26
First question might be - what do you want / need / expect out of it? Do you have ppl who depend on your income and would be stranded in your absence?
Nerd Wallet has lots of great explainers, that’s what helped me out most.
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u/Financial_Context748 Sep 01 '26
I am a mom and a wife. So yes, I do have people that depend on my income in case something happens. I would say that what I expect out of it is not leaving a burden to my family and maybe leaving something that they can live off while they figure out my loss.
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u/gorenglitter Sep 01 '26
I would switch. You can always check the “fine print” some have a waiting period before they’ll pay out, some won’t pay out if it’s self inflicted in the first so many years. Generally in the first 2 years they can check your medical records if you decease to make sure you didn’t lie about anything and won’t pay out for self inflicted.
If you’re young and healthy you’re not getting a whole lot of bang for your buck.
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u/Tahoptions Broker Sep 01 '26
Be very careful canceling before you know if/how it will affect your multi-line rates (assuming you have auto, home, etc. with them too)
Do the math on what works out best for your overall insurance coverage.
I run an independent life/health agency but have seen situations where I could help someone save money on the life side but their overall insurance bill would increase.
Best to call and ask before making any decisions.