State Farm Life Insurance Company uses the name State Farm Life, and makes claims that it is the country’s #1 insurer of individual life insurance policies.
State Farm life sells through agents, who receive commission compensation and other compensation for selling the State Farm Life insurance policies. State Farm Life Insurance Company is based in Bloomington, Illinois and prefers Federal Court throughout the country for the many lawsuits that have been filed against State Farm.
The types of insurance policies include term life, whole life, universal life, and variable universal life insurance policies. Each of these particular types of policies has a world of complexity and fine print.
State Farm also describes term life insurance as “affordable protection”, and talks about their different types of life insurance as:
“Term life insurance is the most straightforward form of protection. You generally pay premiums on a monthly or annual basis and your family is protected for that ‘term’…..Help provide for a family’s loss of income; Cover short-term debts and needs; Provide additional insurance protection during the child-raising years, Provide longer term protection to help your family pay off a mortgage or to help pay for a college education.”
“Select Term Life Insurance” where the customer can “Select 10, 20, or 30 years of coverage and a guaranteed benefit. Coverage starts at $100,000, and the affordable premiums are level for the initial policy term. Once past the level premium period, premiums will increase annually. The policy is guaranteed to renew up to age 95 and is convertible to a permanent policy regardless of health, subject to age limits.”
State Farm describes “Whole Life Insurance” policies as:
”Select 10, 20, or 30 years of coverage and a guaranteed benefit. Coverage starts at $100,000, and the affordable premiums are level for the initial policy term. Once past the level premium period, premiums will increase annually. The policy is guaranteed to renew up to age 95 and is convertible to a permanent policy regardless of health, subject to age limits.”
State Farm Life Insurance Company describes its “Universal Life Insurance” as a life insurance policy where:“premiums are paid into your policy’s account value (after a premium expense charge), where it earns interest. Every month, various deductions, such as a charge for insurance protection, are then made from the account value. You have the ability to take loans or make withdrawals from the account value for your personal needs. Loans accrue interest and unpaid loans plus interest and withdrawals will reduce the death benefit and cash value. The policy continues as long as the cash value is sufficient to cover the various deductions each month…”
Here’s a case where verdict was made against State Farm for bad faith in the amount of $2.35 million dollars. The elderly widow was insured under a State Farm policy with $25,000 limits and recovered the huge amount for her insurance claim regarding her husband’s wrongful death from an automobile accident.
The Plaintiff’s lawyer initially demanded that State Farm tender the policy limit of $25,000, which was denied by State Farm, who insisted on the need to see additional notarized affidavits before it could confirm or deny any coverage. However, Georgia law states that if an insurer responds to an insured’s demand for policy limits by making a counteroffer, the counteroffer will constitute a rejection, subjecting the insurer to a claim for bad-faith conduct and liability, far in excess of the insured’s policy limits.
Have you suffered the unexpected loss of a loved one, only to have a claim for life insurance benefits delayed, or denied?
Do you get the feeling that the life insurance company is doing everything it can to avoid paying the claim? Has the life insurance company sent you a letter stating that they are rescinding the policy, making a rescission, or just sending back the premiums paid? Especially if your loved one had the policy for less than two years before passing away, the life insurance company can become very aggressive at seeking to avoid the policy payment. Rescission is a favored strategy of the life insurance company, if the policy was issued less than two years before the death.