Farm - Life Insurance
age 22, George J. Mecherle (pronounced Ma-herl) started farming
his own land near Bloomington, Ill. In 1901 he married Edith
Mae Perry who joined him on his farm. Within a few years,
he was one of the leading farmers in the area.
they had farmed 20 years, Mrs. Mecherle's health began to
fail and the couple decided to move to Bloomington. Unable
to sit still, George Mecherle accepted a job selling insurance
for a small company. He was successful as a salesman, but
he didn't feel the rates or the business practices of the
company suited the needs of farmers.
he suggested a better way to sell insurance, his employer
laughed and said, "If you think you've got such a good idea,
why don't you start your own company?" So he did.
believed that farmers should pay less for insurance because
they drove less and had fewer losses than folks living in
cities. Using this idea, he started State Farm in 1922 as
a mutual automobile insurance company owned by its policyholders.
1928, the decision was made to decentralize. Employees from
the Bloomington, Ill. office -- along with other employees
hired in Berkeley, Cal - established the Company's' first
branch office. This office provided support for agents and
brought service closer to the customer.
Berkeley office was the beginning of a tradition that, as
of today, has resulted in 27 regional offices and more than
1,000 claim service centers. State Farm has grown to include
76,500 employees and more than 16,000 agents servicing 66.2
million policies in the United States and Canada.
just over 75 years, State Farm Insurance Companies has grown
from a small farm mutual auto insurer to one of the world's
largest financial institutions. But despite State Farm's growth,
Mecherle's original philosophy of insurance coverage at a
fair price coupled with fair claim settlement has remained.
State Farm's Mission
Farm's mission is to help people manage the risks of everyday
life, recover from the unexpected and realize their dreams.
Farm are people who make it our business to be like a
good neighbor; who built a premier company by selling and
keeping promises through their marketing partnership; who
bring diverse talents and experiences to their work of serving
the State Farm customer.
Farm success is built on a foundation of shared values
-- quality service and relationships, mutual trust, integrity
and financial strength.
Farm vision for the future is to be the customer's first
and best choice in the products and services we provide. They
will continue to be the leader in the insurance industry and
they will become a leader in the financial services arena.
State Farm customers' needs will determine their path. Their
values will guide them.
State Farm Life Insurance Products
life is kind of a cross between whole life and term insurance.
The premium is flexible, giving you the option of paying a
lower or higher amount. Of course the higher the premium paid,
the higher the policy's account value becomes. The amount
of insurance can be changed as circumstances change throughout
life. The policy is "interest-sensitive," meaning State Farm
credit a current interest rate to the policy account value.
how it works. You pay premiums and State Farm provide insurance
protection. Each month, 5% is taken from premiums and the
balance is added to policy account value. Each month, State
Farm deduct the cost of insurance amount, a $5.00 expense
charge and add the interest. You get a full accounting of
your policy's values from them annually. This policy provides
permanent insurance protection at term insurance rates, and
also provides an accumulation account that grows with current
policy offers you great flexibility in both coverage and premiums.
You can vary your premiums from year to year, or increase
or decrease the death benefit (increases require evidence
of insurability) as your needs change. Account value withdrawals
and policy loans (with interest charged) are also available
to help you meet special cash needs.
life is available at minimum issue amounts of $25,000 for
age 55 to age 80, and $50,000 for age 0 to age 54. It is one
of State Farm's most popular life insurance plans.
Term Life Insurance
life insurance provides death protection for a stated time
period, or term.
life insurance is perhaps the simplest form of life insurance.
It was developed to provide temporary life insurance protection
on a limited budget. Since term insurance can be purchased
in large amounts for a relatively small initial premium, it
is well suited for short-range goals such as life insurance
coverage to pay off a loan, or providing extra life insurance
protection during the child-raising years.
most states and three Canadian provinces, State Farm offers
term insurance policies covering 1, 5, 10, 20, and 30 year
periods. These policies are renewable at higher premiums in
most states to age 85 or 95.
Whole Life Insurance
life insurance coverage for as long as you live and continue
to make timely premium payments.
level premiums and the accumulation of cash values, whole
life insurance is a good choice for long-range goals. The
guaranteed cash values can provide money later on to help
with temporary needs or emergencies.