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Editor:
Published: Dec 22, 2023 9 min read

State Farm is not among our top picks for the best long-term care insurance companies because it stopped issuing new long-term care insurance policies in 2018. That means it will continue to service existing policies, but you can no longer purchase this type of product through State Farm agents.

If you are still interested in getting long-term care benefits through State Farm, the company offers a Flexible Care Benefit Rider that can be added to select life insurance policies underwritten by the company. This rider is not available in New York or California.

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Leader in LTC insurance since 1976

 Nation’s leading provider since 1976, unmatched expertise and experience.
  • Wide range of options & exclusive discounts.
  • Cost of Care Map tool to understand costs
  • Offer: Hybrid LTC, Short-Term Care, and Home Health Care plans.

LTC benefits provided with life insurance & annuities

Long-term care benefits provided with life insurance & annuities
  • Individual and joint policy options available
  • Members can receive in-home and/or facility care
  • Coverage for hospice & respite care, caregiver training included
  • Accessible via Goldencare

A+ score, BBB-accredited

BBB-accredited with an A+ score
  • Best for ages 45-79, $100k+ net worth, in good health
  • Comprehensive, affordable plans
  • Protects your assets with tax-free benefits

Plans are fully customizable to cater to your needs

Plans are fully customizable to cater to your needs
  • Multiple riders to choose from
  • Preferred health and couple’s discounts available
  • Other insurance and financial services are also provided
  • Accessible via Goldencare

Over 100 years of industry experience

Facility care and/or in-home care coverage options available
  • Completely customizable policies
  • Special pricing for joint policies available
  • Access to all the top insurance companies
  • Accessible via Goldencare

State Farm long-term care insurance pros and cons

Pros
  • Strong financial strength ratings
  • High customer satisfaction ratings
  • Flexible Care Benefit Rider offers long-term care benefits
Cons
  • No longer issues new long-term care insurance policies
  • The monthly cost of the Flexible Care Benefit Rider is subject to increase
  • Rider will not pay for losses related to pre-existing conditions

Pros explained

Strong financial strength ratings

A.M. Best gives State Farm an A++ (Superior) financial strength rating. This is the highest possible rating the agency award, evidencing State Farm's superior ability to pay its insurance obligations.

High customer satisfaction ratings

State Farm ranked first on J.D. Power's 2023 Individual U.S. Life Insurance Study with a customer satisfaction rating of 843 on a 1,000 point scale. While the survey only reflects the experience of 5,588 individual life insurance customers, these findings are still indicative of the overall positive experience many customers have had with State Farm's life insurance offerings.

Flexible Care Benefit Rider offers long-term care benefits

Those still interested in obtaining some form of long-term care coverage through State Farm will be glad to know the company still sells a long-term care rider that can be added to some of its life insurance products.

The Flexible Care Benefit rider allows policyholders to access a portion of their life insurance policy's death benefit if they are unable to independently perform at least two basic daily activities for 90 days due to a decline in their functional capacity or if they need significant supervision to safeguard their health and well-being because of severe cognitive impairment.

Cons explained

No longer issues new long-term care insurance policies

State Farm stopped issuing new long-term care insurance policies in 2018. The company will still service existing policies, but you cannot purchase long-term care insurance through its agents. And while State Farm still sells a long-term care rider, those may not be available in every state. Additionally, terms and conditions may vary by state as well.

The monthly cost of the Flexible Care Benefit Rider is subject to increase

Since the monthly cost of the Flexible Care Benefit Rider is not guaranteed, the price can increase up to a maximum amount based on the policy's terms.

Rider will not pay for losses related to pre-existing conditions

According to State Farm, this rider will not cover losses related to a pre-existing condition, unless the loss happens over six months after the rider's effective date.

State Farm long-term care insurance offerings

State Farm offers a solid array of long term care policy options, but not all options are available in all states. It sells policies that qualify under the long term care partnership rules of all states that participate in the program.

The company also offers a rider on its life insurance policies that, in effect, converts them into a hybrid life/LTC policy. These riders, however, are not available in California or New York.

Policy types

  • Individual / Standard
  • State partnership
  • Hybrid life and long-term care
  • Tax qualified

Types of covered care

  • In-home care
  • Assisted Living / Adult Day Care
  • Nursing Home
  • Hospice Care
  • Medical Help Systems

Facility coverage

  • Any facility

Available policy riders

  • Inflation Protection
  • Return of Premium
  • Waiver of Premium
  • Home Modification

Inflation protection

  • Future purchase option
  • Simple automatic increase benefit
  • Compound automatic increase benefit

State Farm's policies offer a $500 daily limit should be more than sufficient to pay for 24/7 home health aide care or for care in a nursing home. The company's benefits triggers are also reasonably designed and do not unduly burden consumers.

For eligibility, State Farm policyholders must be unable to perform two activities of daily living. All claims for benefits must be processed through a State Farm agent, a practice that will please some customers and frustrate others.

  • Maximum daily benefit limit: $500 per day
  • Lifetime benefit period: 5 years
  • Unlimited benefit period: None
  • Elimination period: 30,60 or 90 days

For benefits to be paid out, the policyholder must have a letter from a physician certifying that they have limitations that prevent them from performing at least two activities of daily living (ADL) or a cognitive impairment like Alzheimer's disease.

State Farm long-term care insurance financial stability

State Farm is a solid choice for long term care insurance. With solid financials and almost a century of operations, the company appears to be prudently managed-an important consideration when purchasing policies that may not pay out for years or decades.

State Farm long-term care insurance accessibility

State Farm is the largest property and casualty insurance company in the United States. Its policies and riders are sold only through its network of agents, although quotes are available online. The company is located in Bloomington, Illinois, and does business in every state and the District of Columbia.

Availability

State Farm agents are available in all 50 states and the District of Columbia. However, State Farm Life Insurance Company, which currently underwrites the Flexible Care Benefit Rider (the only LTC product the company still issues) is not licensed in Massachusetts, New York or Wisconsin.

Contact information

If you have general comments or questions, you can contact State Farm through the following channels.

  • Company phone number: (800) 782-8332
  • Headquarters address: One State Farm Plaza, Bloomington, IL, 61710

If you need to file a long-term care insurance claim or need help understanding your benefits, contact your local State Farm agent or the company's Health Response Center at 866-855-1212.

User experience

State Farm provides no information about its long-term care insurance policies on its website. It does, however, provide general details about long-term care insurance and its long-term care rider for life insurance policies. And while it doesn't provide a wealth of information, the site is relatively easy to navigate.

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State Farm customer satisfaction

Reputational data for State Farm has to be viewed with an understanding that the company is one of the largest insurers in the country and offers many different lines of insurance. The company's high number of negative BBB reviews (1.17 out of 5 stars based on feedback from 1,340 customers) is typical for a company of this size.

Moreover, State Farm has ranked highest among individual life insurance providers for four consecutive years, according to J.D. Power. Based on the latest U.S. Life Insurance Study, 5,588 rated the company highly based on factors such as communication, interaction, price, product offerings and statements.

How we evaluated State Farm long-term care insurance

To review State Farm's long-term care insurance offering, we took into account the following factors:

  • Coverage options and limits
  • Types of policy offered
  • Optional riders
  • Pricing and discounts
  • Customer satisfaction ratings
  • Financial stability

Summary of Money's review of State Farm long-term care insurance

State farm no longer issues long-term care insurance policies. Nevertheless, the company still sells a long-term care insurance rider that can be added to some of its life insurance policies. Additionally, State Farm holds superior financial strength and customer satisfaction ratings and is our top pick for the best life insurance company on the market.

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