State Farm Insurance started selling insurance products in Canada in 1938. Through its seven operations centres, 500 independent contractor agents and 1,500 employees, State Farm Insurance provides insurance products to over 1.2 million Canadian households. State Farm is unlike some other insurance companies in that it is a mutual company; thus, when State Farm gets better financial results than anticipated in a given year, it is able to give back to its policyholders by issuing dividends.
State Farm offers auto, home, life, condominium unit owner, business, boat, farm/ranch and personal insurance. In terms of life insurance, State Farm offers two different kinds; the first kind is term life insurance. In a nutshell, term life insurance is designed to provide a form of temporary life insurance for people who may have limited financial resources. Term life insurance can be short-term or long-term; taking out term life insurance in order to pay off a loan is an example of a short-term policy, and taking out term life insurance to provide extra coverage while raising young children is a long-term policy. State Farm offers term life insurance in the provinces of Alberta, New Brunswick and Ontario. People can choose to purchase term life insurance for a term of 5 years, 10 years, 20 years or 30 years. As you get older and the number of estimated years left in your lifespan decrease, term life insurance premiums rise. Generally though, term life insurance has the lowest premiums available in the short-term.
The other kind of life insurance State Farm offers is permanent life insurance. Permanent life insurance, also known as whole life insurance, provides coverage for an insuree’s entire life. In addition to providing coverage, the permanent life insurance policy also builds up cash value over the years. The great thing about permanent life insurance is that the premiums are fixed; if you buy permanent life insurance when you’re young and healthy and have a long life expectancy, you’ll receive a lower rate that will stick with you for the rest of your life. With a permanent life insurance policy, you have the ability to receive dividends through State Farm. Although permanent life insurance premiums may appear to be higher than term life insurance premiums, in the long-run they turn out to be lower.