Can you borrow money from your State Farm Life Insurance?
- Just MeLv 59 years agoFavorite Answer
Depends on which policy you carry, how long you've had it, how much money it has built up and whether you're the owner of the policy.
If you carry the Universal Life, any of the several whole life policies they sell or even their dividend producing term policies, you may very well have the ability to borrow.
Call your State Farm agent.
**BTW, in response to another poster who stated it wasn't a good idea to buy life insurance from a car insurance company, just so you know, State Farm Life Company is an entirely separate company from State Farm Mutual Automobile Insurance Company. Also, take a look at TheStreet.com and compare the financial strength of all life insurance companies. You won't have to look hard for State Farm Life, they're right at the top. I've paid large cash values to customers who had other life insurance through different companies and couldn't believe how much more they earned with State Farm. What matters the most is who will be there to pay your claim when the time comes. That's what you need to worry about. How many life insurance companies are still in business after 70 years...oh yeah, State Farm Life is.
**Addtl info for Pickle: I have plenty of life insurance customers who don't have their auto or home insurance with me. I started out in the life and health business and was a former life and health underwriter, it's my specialty. The reason I have these customers is because they shopped and listened to what the policy actually includes compared to the competitors. State Farm is not in the habit of quoting the lowest price up front. Why? Most people don't qualify for elite or preferred rates. We understand that and personally, I would be much happier if someone told me what the real rate will be, once medical history is uncovered. Now, if they do qualify for elite or preferred, I can beat the pants off every other company out there when you compare value for your dollar. I do it all the time. The returns that come with State Farm's policies along with the added coverages and benefits we offer make it an extremely competitive product. Check out their rates, ask for the elite rate, you'll see what I mean.Source(s): Owner of a State Farm agency. Over 22 years experience.
- SusanLv 44 years ago
Call your local State Farm agent for the most current information about general questions and about your policy in particular. Each state has different laws and rules about insurance so asking a specific question here will not get an answer that is specific for your area.
If it's a cash value policy you can. And, it's not the "worst possible product" if you want insurance forever. But, buying life insurance from a car insurance company.....is not advisable if you want something competitive. You might want to rethink that process.
FYI - Thumbs down doesn't make it wrong...I've never seen a competitive life insurance product from this car insurance company. They sell life insurance to their car insurance customers because the customers don't bother shopping. They buy because it's convenient so why should they make it competitive?
I see the SF agent doesn't agree. And, don't get me wrong, they're a great car insurance company. They're just not competitive at life insurance. Call them and get the price for one company then call a life insurance broker and get the prices of more than 100. It's not uncommon to get 30-50% more coverage for the same price. That's been my experience. And, 70 years is a long time, but I'd rather save 30% with a company that's been around for 100 years....or even 60 for that matter.
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- Go with the flowLv 79 years ago
Only if you have a whole life policy.
Whole life insurance is one of the worst possible products a person can get.
Chances are you don't have this...
Only if you have any cash value to it, and you're the policy owner.
- glennieLv 43 years ago
This is puzzling to me too