Leaving State Farm

Make sure you understand what happens to your coverage when you leave State Farm. Although you will lose coverage under some benefits, you can choose to extend your health coverage under the federal law known as COBRA. For some other benefits, you can convert from group to private coverage for yourself and any dependents you cover.

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Continuing coverage under COBRA

Your medical, dental, vision, and EAP coverage will end on the last day of the month in which you leave State Farm. Coverage will also end that day for any dependents you cover.

Within about two weeks of leaving State Farm, you will receive information about COBRA and other continuation options from the State Farm Benefits Center.

Under COBRA, you can extend your medical, dental, vision, and EAP coverage for up to 18 months. You can extend your health care FSA or limited purpose FSA under COBRA through the end of the current plan year if you have a positive FSA balance. 

Here’s how COBRA works:

  • You can continue the same plans at the same coverage tiers you were enrolled in as an employee. Your COBRA coverage is identical to the coverage you had as a State Farm employee. If you experience a qualifying life event during your COBRA coverage, you can make coverage changes.
  • You will pay 100% of the cost of coverage, plus a 2% administrative fee. Details will be included in your COBRA packet.
  • You have 60 days from the date of the COBRA notice you receive (or the date coverage would otherwise end) to elect COBRA continuation coverage. After submitting your COBRA election form, you have 45 days to make your first COBRA payment. Coverage is retroactive to the date your State Farm coverage ended, so there is no gap in coverage. From then on, your COBRA payments will be due monthly.

Health care flexible spending account (HCFSA)

Coverage ends on the last day of the month your employment ends. You have until March 31 of the following year to submit reimbursement claims for eligible expenses incurred before your coverage ended.

Any unused funds in your HCFSA will be forfeited after the claims submission deadline.

Questions? Contact Optum Financial.

Employee Assistance Program (GuidanceResources)

You can elect COBRA continuation for ComPsych GuidanceResources (Employee Assistance Program) at no cost to you or your eligible dependents.

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Looking for other options?

Check out the Health Insurance Marketplace for other plans that may be available to you and for what you’ll pay for them.

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What happens to your other benefits

Here’s how leaving State Farm affects your other benefits.

Health Savings Account (HSA)

Your Health Savings Account (HSA) and the money in it are yours to keep forever. You can continue to use the money for eligible expenses for yourself, your spouse, and your dependents, but you can’t contribute to the account unless you have other HSA-eligible coverage.

You will no longer receive contributions from State Farm, and you will be responsible for any account maintenance fees previously paid by State Farm. Make sure Optum Financial has your current contact information, so you can continue to receive statements and other important notifications. 

Contact Optum Financial for information about keeping, rolling over, or closing your HSA.

401(k) Savings Plan

Your contributions and any vested contributions from State Farm are yours to keep. 

You can leave your account with Vanguard (if your balance is more than $7,000), roll it over to another qualified plan, or take a distribution (subject to taxes and penalties). Be sure to update your contact and beneficiary information when you leave State Farm, so you don’t miss important communications.

For details, contact Vanguard.

Life insurance

Life insurance coverage ends the last day of the month you leave State Farm. You can convert your coverage to individual policies within 31 days of leaving State Farm, without medical underwriting (evidence of insurability). Within about two weeks of leaving State Farm, you will receive a conversion notice from the State Farm Benefits Center. Take it to a State Farm agent to help with conversion.

Accidental death and dismemberment (AD&D) insurance

Group voluntary AD&D coverage ends the last day of the month you leave State Farm. Conversion is not available.

Dependent Care FSA (DCFSA)

Coverage ends on the last day of the month in which employment ends; however, you can continue to submit current-year claims for services even after you leave State Farm. Current year claims for eligible expenses must be submitted by March 31 of the following year. Since you’ll make no new contributions, you can spend only the funds in your account. 

Any unused funds in your DCFSA will be forfeited after March 31 of the following year. 

Contact Optum Financial with questions.

Long-term disability

After leaving State Farm, you may be able to convert coverage by paying premiums directly to New York Life. For information about portability, contact New York Life at 888-842-4462.

State Farm Federal Credit Union (SFFCU)

If you leave State Farm for any reason other than retirement, you will become a Limited Services Member of State Farm Federal Credit Union.

Make sure the credit union has your current mailing address, email, and phone number, so that you can continue to receive important communications.

For more information, visit the SFFCU website or call 888-521-5209.

Pension plan

If you are vested in the pension plan when you leave State Farm, you retain your pension benefits. You can begin receiving unreduced benefits at age 62 or a reduced benefit as early as age 55, per plan rules.

For more information, visit the My State Farm Benefits Resource website (auto sign-on with SSO | log in) or call 866-935-4015.

College Coach through Bright Horizons

Access to College Coach ends immediately upon termination.

Commuter benefits

You lose access to your commuter benefits account on your last day at State Farm. Any unused funds in your account will be forfeited and cannot be refunded to you, per IRS regulations.

Tuition assistance

You will not be eligible to receive reimbursement for classes you are currently attending, unless your separation was the result of a layoff or circumstances beyond your control.

If you received tuition assistance and leave State Farm before completing the courses, your income will be updated, meaning payments made by State Farm will become taxable to you. For more information, contact Bright Horizons EdAssist.

Services through Carrot

If you received services while employed at State Farm and your employment ends for any reason, you will have up to 30 days after your last day to submit a claim for reimbursement. For more information, contact Carrot.

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