Nationwide vs State Farm

Verdict

Nationwide and State Farm are two of the largest P&C-affiliated life insurers, and both are owned through mutuals, so neither has outside shareholders. Both also rank at the top of J.D. Power's 2026 U.S. Individual Life Insurance Study: Nationwide 1st of 23 (701 points) and State Farm 2nd (692); in 2025 State Farm was 2nd and Nationwide 3rd. The practical differences are how you buy and what you can buy.

Nationwide ended its exclusive agent force in 2020 and now sells through independent agents, financial professionals and brokers, with direct online and phone sales for short-term no-exam term (10 or 20 years, up to $1.5 million, ages 21 to 55). Its permanent line leans to universal life: indexed universal life, survivorship indexed UL, variable universal life, a long-term care rider and linked-benefit products. State Farm sells only through exclusive State Farm agents, with a short traditional list: Select Term, return of premium term, participating whole life, guaranteed issue final expense and universal life. It does not sell indexed or variable life.

Financial strength is close but not identical. State Farm's AM Best rating was lowered to A+ (Superior) from A++ in November 2025; Nationwide's is A+ (Superior), affirmed November 2025, with A1 from Moody's and A+ from S&P. State Farm's whole life is participating, and its life companies paid $924 million in policyholder dividends for 2025. Nationwide's profile does not describe dividend-paying whole life. Nationwide agreed in 2026 to reinsure a MassMutual fixed universal life block, which MassMutual continues to administer.

Choose Nationwide if

• You want to buy short term coverage online without a medical exam, up to $1.5 million.
• You want indexed or variable universal life, survivorship IUL or an LTC rider.
• You prefer an independent agent who can shop more than one carrier.
• You want to buy in Massachusetts, where State Farm does not sell life insurance.

Choose State Farm if

• You want a local exclusive agent and already insure your car or home with State Farm.
• You want participating whole life that can earn dividends, which are not guaranteed.
• You want term that converts to permanent coverage regardless of health.
• You want a simple, traditional product list without index or variable options.

Key differences

Before you decide

Compare the same coverage and term from both (how to compare life insurance quotes fairly), including what happens if you outlive a term (converting term life to permanent: how the conversion option works). Read captive vs independent life insurance agents to weigh an exclusive agent against an independent one, and IUL pros and cons: what the sales pitch leaves out before choosing an indexed policy. Check rating dates with AM Best, S&P, Moody's and Fitch ratings explained.