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2023 State Farm Disability Insurance Review

State Farm offers personal short-term and long-term disability insurance, as well as a credit disability insurance plan for individuals.

State Farm is a well-known insurance company that earns high marks for having longer benefit periods on its short-term disability coverage.

State Farm was founded in 1922. Today, it is one of the largest insurers in the country, ranking 36th on the Fortune 500. It offers 100 products and services, in five different lines of business.

State Farm has earned the highest financial strength rating given by A.M. Best, an A++. It also has an AA rating from Standard & Poor’s (the 3rd highest of 22 ratings).

State Farm disability insurance policy basics

The company offers individual short-term and long-term disability policies. It also sells individual credit disability insurance, which pays your creditors and protects your credit score in the event you can’t work.

Investopedia considers State Farm one of its top carriers for short-term disability, calling the carrier the best for having a long coverage period. You can get a short-term disability policy with a 1-year benefit or a 3-year period. Monthly benefit amounts for short-term disability range from $300 to $3,000. Elimination periods are available in 30, 60, or 90 days.

State Farm’s long-term coverage offers monthly benefit amounts from $500 to $20,000. You can opt for a 5 or 10-year benefit term, or to ages 65 or 67. Elimination period options are 30, 60, 90, and 180 days.

With individual credit insurance, you pay a single upfront premium, so there is no elimination period. You can get a monthly benefit amount ranging from $40 to $1,200, but the overall maximum benefit is $100,000. The benefit period is based on how long it takes to pay off your loans.

State Farm’s coverage is available in all but three states: Massachusetts, New Jersey, and Rhode Island.

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State Farm disability insurance built-in benefits & riders

State Farm’s disability policies include:

  • A waiver of premium that pauses premium requirements while you’re receiving policy benefits.
  • A residual disability benefit that pays partial benefits if you can work during a disability but you lose at least 20 percent of your income. During the first six months of residual disability, State Farm pays a minimum of 50 percent of the total disability. If your loss of earning exceeds 75 percent, the insurer will pay the full benefit amount.
  • Rehabilitation expenses that cover approved vocational rehab programs while you’re totally disabled.
  • An additional purchase option on the fifth anniversary of your policy without having to go through the application process.
  • A cost of living adjustment on your monthly disability payments.
  • A regular occupation extension rider that extends the claim qualification to include other jobs besides your chosen occupation.

Learn More: Which Disability Insurance Riders Do You Need?

Pros & cons of State Farm disability insurance

In addition to having a longer benefit period for short-term disability, online reviewers tout State Farm for its simple application process.

Another differentiator is that State Farm enables policyholders to buy both individual short-term and long-term policies, which makes filing claims and policy management more convenient. Many companies only offer short-term or long-term disability.

One of the downsides of their coverage is that normal childbirth and pregnancy or not covered. Also, you can only get coverage by enlisting one of its captive agents. You can’t purchase a policy, or even get a quote for coverage, through the company’s website. In fact, you cannot get information about the typical insurance cost, available riders, elimination period lengths, or occupation classifications on its website.

The claims process is also considered a bit cumbersome according to some online reviewers. Claims cannot be filed online. Policyholders have to download, fill out and submit a paper version of the claim form.

Joel Palmer is a freelance writer and personal finance expert who focuses on the mortgage, insurance, financial services, and technology industries. He spent the first 10 years of his career as a business and financial reporter.

The information and content provided herein is for educational purposes only, and should not be considered legal, tax, investment, or financial advice, recommendation, or endorsement. Breeze does not guarantee the accuracy, completeness, reliability or usefulness of any testimonials, opinions, advice, product or service offers, or other information provided here by third parties. Individuals are encouraged to seek advice from their own tax or legal counsel.

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