How State Farm Whole Life Insurance Stacks Up Against Competitors
State Farm whole life insurance is permanent life insurance from a State Farm life company. This page compares that coverage with five mutual companies that publish participating whole life information: Northwestern Mutual, MassMutual, New York Life, Guardian, and Penn Mutual. Figures below were taken from those companies' public pages and from one A.M. Best release, and they were checked on October 26, 2026.
A single-company verdict stays on the State Farm whole life insurance review. A wider shopping list stays on best whole life insurance. This page does not quote a premium for you. The only prices it prints are samples State Farm itself publishes, for one age and health profile in one state.
Who State Farm whole life fits
State Farm's whole life page describes level premiums and lifetime protection if you pay the premium as the policy requires, plus cash value the owner can borrow. The same page lists three ways to pay: a single premium, premiums payable to 100, or premiums for a limited number of years. The limited-pay page names 10, 15, and 20 years.
That is a fit when you already want a State Farm agent and you want a permanent policy from the life company that is licensed in your state. Product names, riders, and the final-expense bands are on the State Farm whole life insurance review.
It is a poor place to stop if the decision turns on a published dividend interest rate. State Farm's life FAQ says its life policies are participating, which means they are eligible for dividends. The whole life page lists what you can do with a dividend. On the pages checked for this comparison, State Farm does not print a dividend interest rate or a dollar dividend payout for 2026. Northwestern Mutual, MassMutual, and Guardian do print a 2026 rate. New York Life prints a 2026 dollar payout and does not print a rate in that announcement. Penn Mutual prints a rate for 2025–2026 on its dividend explainer. Those figures are in the table below. None of them is your policy's rate of return.
If you want the longer dividend series this site already charts, use whole life dividend rate history. This comparison only uses figures the carrier still publishes on its own site.
Which company issues the policy
State Farm's whole life page names two issuers. State Farm Life Insurance Company is the company in most states. Residents of New York and Wisconsin are pointed to State Farm Life and Accident Assurance Company. Both are in Bloomington, Illinois.
The ratings page is more specific about licenses. It says State Farm Life Insurance Company is not licensed in Massachusetts, New York, or Wisconsin. It says State Farm Life and Accident Assurance Company is licensed in New York and Wisconsin. That page does not name a State Farm life company for Massachusetts.
A.M. Best's November 14, 2025 release treats those two life companies as the State Farm Life Group. It treats State Farm Mutual Automobile Insurance Company as a separate company, inside the State Farm Group of property and casualty insurers. This comparison does not call the life company a mutual. The mutual named in that release is the auto insurer.
Side-by-side fact sheet
Read each cell as a label, then read the section under the table before you treat two cells as equal. A dividend interest rate from one company is not the same math as a rate from another. MassMutual's 2026 dividend release says the rate is not the return on the policy and should not be the only basis for comparing insurers.
| Topic | State Farm | Northwestern Mutual | MassMutual | New York Life | Guardian | Penn Mutual |
|---|---|---|---|---|---|---|
| Company named | State Farm Life Insurance Company, or State Farm Life and Accident Assurance Company in NY and WI | The Northwestern Mutual Life Insurance Company | Massachusetts Mutual Life Insurance Company | New York Life Insurance Company | Guardian, on guardianlife.com | The Penn Mutual Life Insurance Company |
| Structure in the carrier's own words | Two life companies. A.M. Best lists them apart from State Farm Mutual Automobile Insurance Company | Mutual. No stockholders; policyowners share results by dividends | Mutual, run for members and participating policyowners | Mutual. Says it is the largest U.S. mutual life insurer on the Fortune ranking it cites | Mutual. Says a whole life buyer is an owner as well as a customer | Mutual since 1847 |
| A.M. Best financial strength | A+ (Superior), outlook stable, as of November 14, 2025. Downgraded from A++ in the same action | A++ (November 2025) | A++ (Superior), as of November 1, 2025 | A++, commentary as of October 28, 2025 | A++ (Superior), 1 of 15, as of December 31, 2024 | A+ (Superior), affirmed April 2026 |
| Other ratings in that same source | The A.M. Best release does not list S&P or Moody's for the life companies. State Farm's ratings page does not print letter grades | Fitch AAA (June 2026), Moody's Aa1 (August 2026), S&P AA+ (May 2026) | Fitch AA+, Moody's Aa3, S&P AA+, as of November 1, 2025 | Fitch AAA, Moody's Aa1, S&P AA+, commentary as of October 28, 2025 | Moody's Aa1, S&P AA+, footnote as of December 31, 2024 | Moody's Aa3 (November 2025), S&P A+ (December 2025), Fitch AA- (October 2025) |
| 2026 dividend dollars the carrier published | None on the pages checked | $9.2 billion expected total for 2026, about $7.9 billion of it to whole life policyowners | Estimated $2.9 billion to eligible participating policyowners | Estimated $2.78 billion to eligible participating policy owners | $1.7 billion allocation to participating policyholders | No 2026 dollar total in the March 2026 explainer. October 13, 2026 release: $360 million for 2027 |
| Dividend interest rate the carrier published | None on the pages checked | 5.75% for most policies in 2026 | 6.60% for 2026 | Not in the November 20, 2025 announcement. This site's dividend rate history charts 6.40% for 2026 | 6.25% | 6.00% for 2025–2026 on public explainer T4810, as of March 2026. The October 13, 2026 release does not print a 2027 rate |
| Designs named on the page used here | Premiums to 100, limited pay 10/15/20, single premium, and two small final-expense policies | Participating whole life in the general account | Participating whole life eligible for the dividend | Participating whole life | Participating whole life | Participating whole life. The explainer says the rate history varies by product |
Ratings, with the source and the date
A financial strength rating is an agency's opinion about claims-paying ability. It is not a score for cash value, and it is not a reason to skip an illustration.
State Farm's own life financial strength ratings page says the two life companies have earned high ratings and then tells you to ask an agent for the specifics. It does not print the letters. The letters in the table come from A.M. Best's November 14, 2025 release. That release downgraded the Financial Strength Rating of State Farm Life Insurance Company and State Farm Life and Accident Assurance Company to A+ (Superior) from A++ (Superior). It revised the outlook to stable from negative. It also downgraded State Farm Mutual Automobile Insurance Company, the property and casualty mutual, to A+ from A++. The life-company issuer-credit downgrade, A.M. Best wrote, reflects the removal of rating lift from the State Farm Group. A.M. Best still described the life group's balance sheet strength as strongest and its operating performance as strong, and it said the life group had been profitable in each of the prior five years. Those are A.M. Best's words about the companies, not a product review.
Northwestern Mutual's financial information page lists A++ from A.M. Best as of November 2025, AAA from Fitch as of June 2026, Aa1 from Moody's as of August 2026, and AA+ from S&P as of May 2026. The footnote says the marks are for The Northwestern Mutual Life Insurance Company and Northwestern Long Term Care Insurance Company, and that they can change.
MassMutual's 2026 dividend release lists A++ from A.M. Best, AA+ from Fitch, Aa3 from Moody's, and AA+ from S&P for MassMutual and for C.M. Life Insurance Company and MML Bay State Life Insurance Company. It says those ratings were current as of November 1, 2025.
New York Life's November 20, 2025 dividend announcement says, in a footnote dated as commentary of October 28, 2025, that the marks were A++ from A.M. Best, AAA from Fitch, Aa1 from Moody's, and AA+ from S&P.
Guardian's page on choosing a life insurance company, last updated May 22, 2025, prints A++ (Superior) from A.M. Best, Aa1 from Moody's, and AA+ from S&P, with a footnote that the ratings are as of December 31, 2024 and can change. That is an older stamp than the others. Use it as Guardian's dated public table, and recheck Guardian before you rely on it.
Penn Mutual's ratings page says A+ (Superior) from A.M. Best was affirmed in April 2026, Aa3 from Moody's was affirmed in November 2025, A+ from S&P was affirmed in December 2025, and AA- from Fitch was affirmed in October 2025.
An A++ and an A+ are both inside A.M. Best's Superior wording, and they are not the same notch. State Farm Life and Penn Mutual are at A+ on the sources above. Northwestern Mutual, MassMutual, New York Life, and Guardian are at A++ on the sources above. The notch is not a cash-value ranking.
Policy types and riders
State Farm's whole life page names three pay patterns: a single premium, premiums payable to 100, and limited pay for 10, 15, or 20 years. It also names two small final-expense designs. The limited-pay page names three optional benefits: a disability waiver, a future-purchase option (State Farm's title is Guaranteed Insurability Option), and a payor benefit on a policy for a child. Ages, face amounts, and rider rules are product detail. They stay on the State Farm whole life insurance review. The limited-pay idea, separate from this carrier, is on limited pay whole life insurance.
The five mutuals each sell participating whole life, which is why they are in the table. This page does not copy their product catalogs or their rider menus. Those stay on the reviews linked above and on best whole life insurance.
A published sample price, not a comparison
State Farm's limited-pay page prints sample rates for a 25-year-old woman in excellent health in Illinois. State Farm says the examples are for the policy's minimum death benefit, and it shows them at $100,000 of coverage.
| Paying period | State Farm's published starting monthly sample |
|---|---|
| 10 years | $258.48 |
| 15 years | $190.27 |
| 20 years | $155.51 |
Those three numbers are State Farm's examples for that one profile. They are not a quote for any other age, sex, health class, state, or face amount. Northwestern Mutual, MassMutual, New York Life, Guardian, and Penn Mutual do not publish a matching sample on the pages used for this comparison. A lower or higher number on an illustration you run later is a different fact. Do not treat the table as proof that State Farm costs more or less than those companies.
Dividends the carriers publish
A participating policy can receive a dividend when the company's experience differs from the assumptions used to set the policy. Every carrier cited here says the dividend can change. State Farm calls a dividend a return of premium based on mortality, expense, and investment experience. MassMutual says the dividend interest rate is the investment piece of the dividend, not the rate of return on the policy. Northwestern Mutual's dividend page shows the same idea with an example: the rate is applied inside a formula that also subtracts a mortality and expense charge, and the dividend is the gap between the value that uses company experience and the value in the policy's fixed schedule.
Use the dollar payout and the interest rate as two different facts.
Northwestern Mutual's October 28, 2025 announcement says the expected 2026 payout is $9.2 billion, and that whole life policyowners are expected to receive close to $7.9 billion of that. Its dividend page says the dividend interest rate is 5.75% for most policies in 2026, and that it has paid dividends every year since 1872. The page says policyowners can use a dividend to increase policy values, offset premiums, or take cash.
MassMutual's release, datelined November 3, 2025, says it will pay an estimated $2.9 billion to eligible participating policyowners in 2026, that this is the 158th consecutive year it has paid a dividend, and that the dividend interest rate will increase to 6.60%. The footnote says the rate is determined each year, can change, and is not the return on the policy.
New York Life's November 20, 2025 announcement says it will pay an estimated $2.78 billion in 2026, the 172nd consecutive annual dividend, on participating whole life policies and on some annuity, long-term care, and disability products that use separate scales. The announcement does not print a dividend interest rate. This site's whole life dividend rate history charts New York Life at 6.40% for 2026. That figure is the chart on this site. It is not a number in the November 20, 2025 announcement.
Guardian's 2026 dividend page says the allocation to participating policyholders in 2026 is $1.7 billion and that the dividend interest rate increases to 6.25%. It lists uses that include reinvesting, offsetting premiums, taking the dividend as income, and buying additional coverage. Checked October 26, 2026.
Penn Mutual's dividend explainer, T4810, is a PDF on gateway.pennmutual.com that opens without a login. It is written to the policyholder and closes with "reach out to your financial professional." It is not marked for financial professionals only, so the 6.00% it shows for 2025–2026 stays in the table. The PDF says that figure is as of March 2026, and that the dividend interest rate history varies by product. Penn Mutual's October 13, 2026 press release says the board approved a $360 million dividend award for participating policyholders in 2027. That public release does not print an interest rate. A separate Penn Mutual note that does print a 2027 rate is marked for financial professionals only, so the rate is not repeated here.
State Farm's life FAQ says all life policies it offers are participating, or eligible for dividends, and that term and universal life are not anticipated to earn dividends. That is not a 2026 scale. Until State Farm publishes a rate or a dollar payout, those cells stay empty on purpose.
Underwriting and where you can apply
State Farm's life FAQ says not every life product can be applied for online, and that you should contact an agent when you cannot apply online for a specific product. The online quote steps on that FAQ are for term. Whole life, on the pages above, is an agent conversation. The FAQ also says a quote is free and is not a contract to issue coverage.
The same FAQ says a multiple-line discount applies to auto premiums, not to the life premium, and that it varies by state. The limited-pay page says that if you have State Farm auto insurance, buying a limited-pay life policy may discount the auto premium. Those are two different statements. One says the life premium itself is not reduced because you have other policies. The other says the auto premium might be. Neither statement means the life premium itself is discounted. Ask the agent.
Medical rules for the fully underwritten whole life series are not printed on the pages used here. The exception State Farm does print is the two final-expense policies: it says you will not be turned down for medical reasons, inside the age and face-amount bands on its whole life page. Those bands are on the State Farm whole life insurance review. Replacing a policy you already own cannot be done online. The FAQ says to contact an agent about a replacement.
For the five mutuals, this page does not survey states, exam rules, or agent contracts. Their reviews are the place for that company. A personal illustration is still the only way to see premium, cash value, and underwriting class together.
How to use this beside the review
Use this page when the question is how State Farm lines up with named mutual companies on ratings, pay patterns, and published dividends, and on which life company issues the policy. Use the State Farm whole life insurance review when the question is the product menu, the riders, or whether that company belongs on a short list at all. Use best whole life insurance when the question is the wider market.
Bring an in-force illustration, or a new illustration at the same age and health class, before you move a policy. A rating notch, a dividend interest rate, and a sample monthly price answer three different questions.
Frequently asked questions
These answers use the same carrier pages and the same A.M. Best release as the tables above. They are not a second set of facts, and they are not a quote. If a cell in the fact sheet is blank, the answer below stays blank for the same reason.
Is State Farm whole life the same kind of policy as these mutual whole life policies?
State Farm and the five mutuals all describe permanent coverage with cash value and a premium that stays level for the paying period. The mutuals used here also publish a 2026 dividend payout, a 2026 dividend interest rate, or both. State Farm says its life policies are participating and lists dividend options, and it does not publish that 2026 rate or payout on the pages checked October 26, 2026. The issuing company also differs by state. Match the company on the policy to the row in the table before you compare a rating.
Does State Farm publish a 2026 dividend interest rate?
Not on the whole life page, the limited-pay page, the single-premium page, the ratings page, or the life FAQ checked for this article. The FAQ says the policies are eligible for dividends and that term and universal life are not anticipated to earn them. Eligibility is not a scale. Northwestern Mutual publishes 5.75% for most policies in 2026, MassMutual publishes 6.60%, and Guardian publishes 6.25%. Those rates are not your return.
What is State Farm's A.M. Best rating?
A.M. Best's November 14, 2025 release rates State Farm Life Insurance Company and State Farm Life and Accident Assurance Company A+ (Superior), outlook stable. The same action downgraded that rating from A++ (Superior). State Farm's own ratings page does not print the letters. An A+ and an A++ are both inside A.M. Best's Superior wording, and they are not the same notch. Northwestern Mutual, MassMutual, New York Life, and Guardian are at A++ on the sources in the table. The notch is not a cash-value ranking.
Do these ratings mean one policy will build more cash value?
No. A.M. Best, and the carriers that reprint its marks, are describing an opinion of financial strength. MassMutual says its dividend interest rate should not be the only way you compare companies. Northwestern Mutual's own example shows a mortality and expense charge sitting between the interest credit and the dividend. Cash value for a person still depends on the policy form, the face amount, the health class, loans, and whether a dividend is paid. Ask each company for an illustration at the same assumptions.
Sources checked October 26, 2026
State Farm: whole life, limited pay, single premium, life ratings, and the life FAQ.
A.M. Best, November 14, 2025: downgrade of State Farm Mutual and of the State Farm Life Group to A+.
Northwestern Mutual: financial strength, dividend page, and the October 28, 2025 payout announcement.
MassMutual: 2026 dividend release.
New York Life: November 20, 2025 dividend announcement.
Guardian: 2026 dividend page and the ratings table as of December 31, 2024.
Penn Mutual: ratings, public dividend explainer T4810 (opens without a login; not marked for financial professionals only), and the October 13, 2026 award.
Educational only. Not an offer of insurance, and not a personal illustration. The contract and the issuing company control. Dividends, ratings, licenses, and sample prices can change after the dates on the sources above.
