Farmers Life vs State Farm

Verdict

Farmers Life and State Farm are both life arms of big auto-and-home brands, sold mainly through exclusive agents, but their ownership and published detail differ. State Farm's life companies are wholly owned by State Farm Mutual Automobile Insurance Company, a mutual owned by its policyholders. Farmers New World Life is not owned by the Farmers Exchanges: it is a stock company owned by Farmers Group, Inc., whose ultimate parent is Zurich Insurance Group, and the NAIC files it under the Zurich group.

Both sell term and whole life, with a similar shape. Farmers offers term in 10, 15, 20 and 30 years, return of premium term refunding up to 90% of premiums, whole life (including limited-pay options) and indexed universal life, and says most applicants qualify for automatic underwriting with a same-day decision. It is sold in 49 states and Washington, D.C., not New York. State Farm sells Select Term in 10, 20 and 30 years, return of premium term, participating whole life that can earn dividends, universal life and guaranteed issue final expense, but no indexed life; it is sold in every state except Massachusetts, with a separate company serving New York.

The published evidence is thinner for Farmers. Its life pages do not list financial strength ratings, and it was not ranked in the J.D. Power 2026 study; State Farm holds A+ (Superior) from AM Best (lowered from A++ in November 2025) and ranked 2nd of 23. Farmers reinsured its remaining in-force blocks with Security Life of Denver in 2023 and cedes 95% of the risk on new simplified-underwriting term and indexed UL to Zurich; it remains responsible to policyholders, but older variable policy servicing moved to an administrator.

Choose Farmers Life if

• You already have Farmers auto or home coverage and want to add life through the same agent.
• You want indexed universal life linked to the S&P 500 or the S&P MARC 5% ER index with a floor.
• You want a fast online application and an automatic, often exam-free decision.
• You do not live in New York and are comfortable that ratings are not listed on its life pages.

Choose State Farm if

• You want participating whole life that can earn dividends, which are not guaranteed.
• You want published ratings and a top-two J.D. Power result (2nd of 23 in 2026, 692 points).
• You live in New York or Wisconsin, served by State Farm Life and Accident Assurance Company.
• You want term that converts to permanent coverage regardless of health.

Key differences

Before you decide

Ask each agent for a written quote on the same coverage and look up the current AM Best rating for Farmers New World Life yourself (AM Best, S&P, Moody's and Fitch ratings explained). Compare how each handles conversion (converting term life to permanent: how the conversion option works) and use how to compare life insurance quotes fairly to line up the offers, adding an independent broker's quotes. when your life insurance policy is sold to another company explains what reinsurance means for your contract.