Farmers Insurance Group is a major national insurance group in the United States. They are known for offering life insurance, car insurance, and home insurance and have operations in all 50 states. With so many different choices when it comes to life insurance, it can be difficult to determine which one is right for you. In this article, we’ll take a look at Farmers’ life insurance options to see if they are right for your needs.
About Farmers Insurance Group
Farmers Insurance Group was founded in the 1920s in Los Angeles, California. As the name implies, they originally catered to farmers and ranchers and focused on auto insurance. At that time, rural drivers had statistically better driving records than urban drivers. Since then, Farmers has expanded their product offerings significantly, and they cater to people around the country.
Over the last century, they have acquired many smaller insurers to expand their services.
Types of Life Insurance Offered
Farmers has three different types of life insurance to choose from. Each type has its own pros and cons, so the one you choose will ultimately depend on your personal insurance needs. Here are the types of life insurance that Farmers offers.
Term Life Insurance
Term life insurance is arguably the most popular life insurance option for most people. With term life insurance, you will select a term that the policy will last for – usually anywhere from 10 years to 30 years. During this time, your premiums will stay level, but they can increase after the term ends if you choose to renew your policy.
Term life insurance is typically more affordable than other types of life insurance, making it more accessible to a broader range of people. It works well because most major expenses that life insurance covers go away after you hit a certain age – for example, most people will eventually pay off their mortgage, and children eventually grow up and become financially independent.
Farmers insurance offers two types of term life insurance policies – simple term life and value term life. Both offer 10, 20, or 30-year terms. The simple policy has coverage starting at $75,000 and usually does not require a medical exam. The value policy has coverage starting at $150,000 and usually does require a medical exam. It also doesn’t have a maximum coverage amount – something that’s difficult to find with term life insurance policies from other providers.
Whole Life
Unlike term life insurance, whole life policies are designed to last for your entire life and do not expire. They also offer level premiums for your entire life. Farmers Insurance offers a few different types of whole life policies to choose from.
The first is their graded whole life insurance policies, which do not require any medical exams. These policies are great for customers who have pre-existing health conditions that might make it difficult for them to get a more comprehensive type of policy. These policies have death benefits ranging from $5,000 to $30,000 and are typically intended to cover funeral expenses.
They also offer their EssentialLife simple whole life policy, which is available for anyone up to the age of 80 and has a death benefit starting at $15,000. These policies do not expire and are available until the age of 121. You will need to complete a medical questionnaire to receive this coverage, and some customers may also need to take a medical exam.
Universal Life
Universal life insurance policies are similar to whole life policies in that they last for your entire life. However, universal life is more flexible and also comes with a cash value component. Farmers’ universal life insurance policies start at $50,000 of coverage and come with a cash value component that earns interest over time. You can also choose an indexed universal life insurance plan, which allows you to invest part of your premiums.
These plans allow you to adjust your premium amounts as well as the frequency of your payments throughout the life of your policy. You can also adjust your coverage level if needed. Many people enjoy having the extra flexibility that these policies provide. However, they do tend to be more expensive than a traditional term or whole life policy.
Riders Available
Farmers Insurance does offer some riders that you can use to customize your policy. When compared to their competitors, Farmers does not offer as many different riders to choose from. Riders essentially add clauses to your insurance policy to provide additional coverage for specific situations. Here are three of the most common riders that Farmers Insurance Group offers.
Critical Illness Rider
This rider is designed to provide extra protection if you are diagnosed with a critical illness. Farmers has a long list of illnesses that fall into this category, which includes cancer, heart attack, stroke, and more. If you have this rider and you are diagnosed with any of these illnesses, you will receive a lump-sum payment from your life insurance policy.
Disability Rider
The disability income rider will protect you if you become disabled and cannot work at any point during the lifespan of the policy. Depending on the exact terms of the rider, it can pay your premiums to keep your policy in place, and in some cases it can even replace your lost income.
Accelerated Death Benefit Rider
This rider kicks in if you are diagnosed with a terminal illness at any point. Your life expectancy will need to be under a certain amount in order to qualify for this specific rider. In this scenario, you will be able to access a portion of your death benefit early in order to pay medical bills and other related expenses.
Unique Features of Farmers Insurance Group
Farmers is unique in that they offer a very wide variety of insurance products. In addition to life insurance, they offer vehicle insurance, home insurance, business insurance, and much more. This makes it easy for their customers to bundle their insurance policies and get discounts on them.
Farmers Insurance sells their policies through both captive and independent insurance agents throughout the country. This is great for customers that want to develop a relationship with their insurance agent and get the guidance they need when shopping for insurance. While you can’t purchase a policy directly online, Farmers does have a robust website with a quote feature, so you can compare plans yourself before going to an agent.
Their website also allows you to pay your bills and file claims online. Farmers also has a mobile app, which you can also use to pay your bills and manage other aspects of your insurance policy.
Financial Ratings
When shopping for your life insurance policy, it is very important to choose a provider that is financially stable. One way that you can check this is by looking at the insurer’s financial ratings. There are many companies that rate the financial stability of insurance providers, with A.M. Best being the most well-known.
Farmers Insurance Group currently has an A rating from A.M. Best. While this is not the highest rating possible, it is still very good and confirms that Farmers Insurance Group can be trusted to pay their claims, regardless of the current economic climate. Knowing that Farmers Group has survived the Great Depression, the Great Recession, and all other economic downturns can give policy owners comfort that they are well-positioned to be a long-lasting company.
Reviews of Farmers Insurance Group
Looking at reviews is another easy way to get an idea of how an insurer works and whether or not they are a good fit for you. Of course, you’ll want to take reviews with a grain of salt, as everyone has their own unique situation and experience with the company.
When compared to other insurers of the same size, Farmers gets fewer complaints annually. This is according to data from the National Association of Insurance Commissioners. The company has also been accredited with the Better Business Bureau since the 1950s. While they do have some negative reviews with the BBB, most of these reviews are related to their car insurance rather than their life insurance.
Although the company receives relatively few complaints, some customers have been frustrated with their relatively limited customer service options. They don’t allow you to purchase any policies online, and their customer service team is only accessible by phone or email during certain hours. They don’t have any 24/7 chat lines available to help.
How To Apply For Farmers Life Insurance
To apply for Farmers Life Insurance, you can start by visiting their website. They have an online tool called LifeCompass that you can use to determine which policy is going to be right for your needs. From there, you can either use their directory to find an agent near you, or you can opt to get a quote online.
If you decide to move forward at the end of your online quote, the website will then put you in touch with an agent, which you can talk to via email or phone. Depending on your location, you may also be able to meet your agent in person. Your agent will walk you through all of the more specific details of your insurance policy, including any riders that you need. You will also be able to select the amount of coverage that makes sense for you.
Many of Farmers’ life insurance policies are available without a medical exam. However, most will require you to complete a medical questionnaire to determine your eligibility. The results of the questionnaire will also influence your final premium prices.
If you would like to help shop for a Farmers policy our agents can help provide a recommendation for you.
Is Farmers Legit?
Yes, Farmers is a legitimate and very established insurance company with nearly 100 years of experience. While they are known for their car insurance, they also offer very reliable life insurance policies. Customers can choose between term, whole, and universal life insurance policies with some options for riders as well. All insurance policies are bought and sold through agents, but they do have a very informative website where you can get a quote.
Overall, Farmers is a good option for life insurance coverage, especially if you already have their car insurance and want to bundle your policies. These policies are very accessible as well, with agents located all over the US.
When selecting a life insurance policy, it’s always best to get quotes from multiple providers and compare your options. This is because every insurer has its own method of calculating premiums, so your costs and the features available to you can vary widely between providers. You might be surprised by which providers are able to offer you the best deals.
