State Farm and Pacific Life Team Up
State Farm is stepping into new territory. For the first time, it’s offering a Variable Universal Life (VUL) insurance product. The new option, called Pacific Protector Plus VUL, comes from a partnership with Pacific Life.
Pacific Life has been around since 1868. It’s known for its expertise in life insurance and investments. Together, these two companies bring nearly 260 years of experience to the table.
A New Direction for State Farm
This is a big shift for State Farm. The company has always focused on traditional life insurance products. Now, it’s adding a product that combines life insurance with investment potential.
The VUL product is designed for people who are comfortable with market risks. It’s a good fit for those planning long-term financial goals. The target audience is adults aged 30-55, but younger generations might find it appealing too.
The product is already available through State Farm agents. Customers can explore it now.
Young Adults and the Knowledge Gap
There’s a challenge, though. Many young adults don’t understand life insurance. A 2025 study by LIMRA and Life Happens found that most young people overestimate the cost of a policy.
For example, healthy adults aged 18–30 guessed a $250,000 term policy would cost 10–12 times more than it actually does. That’s a huge gap.
It’s not just about cost. Less than 25% of Millennials and Gen Z adults feel they understand the underwriting process. Many don’t know the different types of life insurance available.
This lack of knowledge is holding people back. Over half of young adults who don’t feel informed also have a coverage gap. They know they need life insurance but don’t have enough.
Did COVID Get Gen Z and Millennials to Buy Life Insurance?
Yes, but it’s complicated.
The pandemic made younger generations think more about life insurance. It brought mortality into focus in a way they hadn’t considered before. Applications for life insurance among people under 45 jumped. In 2020, this group saw a 7.9% increase in applications. Older age groups didn’t see the same growth.
COVID also pushed more people to buy insurance online. Younger adults embraced digital tools to research and apply. It made the process easier and more accessible for them.
So, did COVID help? Yes, it got them thinking and acting. But cost misconceptions and lack of knowledge are still big barriers.
Cost Misconceptions
Cost is a major barrier. Nearly half of Millennials and 39% of Gen Z adults say life insurance is too expensive. Others don’t know how much coverage they need or what type to buy.
Even when shown the real cost, some young adults don’t believe it. They think it’s too good to be true. This is a big challenge for the industry.
Social Media as a Solution
Social media could help. The study found that 80% of adults under 45 use social media to learn about financial products. Many follow financial advisors or influencers for advice.
This is where the industry needs to step up. Reliable, clear information on social media can help young adults understand life insurance. It’s a chance to cut through the confusion.
A Step Toward Bridging the Gap
State Farm’s new Variable Universal Life (VUL) product, Pacific Protector Plus VUL, comes at a critical time. While the pandemic pushed many Millennials and Gen Z to think more about life insurance, misconceptions still hold them back. Many overestimate the cost, believing it’s far more expensive than it is. Others feel lost when it comes to understanding the underwriting process or choosing the right type of policy.
This lack of knowledge has created a coverage gap for many young adults. They know they need life insurance but don’t have enough—or any at all. State Farm’s partnership with Pacific Life may offer a solution for their customers. The VUL product combines life insurance with investment potential, making it a flexible option for those looking to protect their families while building financial security.
For younger generations, this product could be a game-changer. It’s an opportunity to address their financial goals while breaking down the barriers of cost misconceptions and confusion. With the right education and outreach—especially through platforms like social media—this has the potential to make life insurance more accessible and relevant to a new generation.
Disclaimer: Live Insurance News does not provide investment advice. This article is for informational purposes only and should be viewed as a news story. Please check with your insurance agent for more information on these subjects.