Farmers Insurance Group is a large national insurance group in the United States. They are known for offering life insurance, auto and home insurance and operate in all 50 states. When it comes to life insurance, with so many different options, it can be difficult to decide which one is right for you. In this article, we’ll take a look at Farmers Life Insurance options to see if they fit your needs.
About Farmers Insurance Group
Farmers Insurance Group: was founded in the 1920s in Los Angeles, California. As the name suggests, they originally catered to farmers and ranchers and focused on auto insurance. At the time, rural drivers had statistically better driving performance than urban drivers. Since then, Farmers has expanded their product offerings significantly, and they serve people all over the country.
Over the last century, they have acquired many smaller insurers to expand their services.
Types of life insurance offered
Farmers have three different types of life insurance to choose from. Each type has its pros and cons, so which 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 probably the most common type of life insurance for most people. With term life insurance, you’ll choose a term that the policy will last, usually between 10 years and 30 years. Your premiums will remain level during this time, but may increase after the term expires if you decide to renew your policy.
Term life insurance is usually more affordable than other types of life insurance, making it more affordable for a wider range of people. This works well because the major costs of life insurance disappear after you reach a certain age, for example, most people will eventually pay off their mortgage and children will 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 terms of 10, 20 or 30 years. Simple policies have coverage starting at $75,000 and usually do not require a medical exam. Value policies have coverage starting at $150,000 and usually require a medical exam. It also has no maximum coverage amount. something that is difficult to find with life insurance policies from other providers.
Whole life
Unlike term life insurance, whole life policies are for your entire life and do not expire. They also offer level premiums for your lifetime. Farmers Insurance offers several different types of whole life policies that you can choose from.
The first is their valued whole life insurance policies that do not require any medical examination. These policies are great for customers who have pre-existing health conditions that may make it difficult for them to get a more comprehensive type of policy. These policies have death benefits that range from $5,000 to $30,000 and are usually designed to cover funeral expenses.
They also offer their EssentialLife simple whole life policy, which is available to anyone up to age 80 and has a death benefit starting at $15,000. These policies do not expire and are available until age 121. To get this cover you must complete a medical questionnaire and some customers may also undergo a medical examination.
Universal life
Universal life insurance policies are similar to whole life policies in that they last for the rest of your life. However, universal life is more flexible and has a cash value component as well. Farmers universal life insurance policies start at $50,000 in coverage and come with a cash value component that earns interest over time. You can also opt for an indexed universal life insurance plan that allows you to invest a portion of your premiums.
These plans allow you to customize your premium amounts as well as your payment frequency throughout the life of your policy. You can also adjust your coverage level if needed. Many people enjoy the added flexibility that these policies provide. However, they are more expensive than a traditional term or whole life policy.
Riders available
Farmers Insurance offers some riders that you can use to customize your policy. When compared to their competitors, Farmers doesn’t offer as many different riders to choose from. Riders essentially add clauses to your insurance policy to provide additional coverage for special situations. Here are the three most common riders that Farmers Insurance Group offers.
Critical illness rider
This rider is designed to provide additional protection if you are diagnosed with a critical illness. Farmers have a long list of illnesses that fall into this category, including cancer, heart attack, stroke, and more. If you have this rider and you are diagnosed with any of these diseases, you will receive a lump sum payment from your life insurance policy.
A rider with a disability
The disability income rider will protect you if you become disabled and unable to work while the policy is in effect. Depending on the exact terms of the driver, they may pay your premiums to keep your policy in place, and in some cases, it may even replace your lost income.
Accelerated rider of death benefits
This rider stands up if you are diagnosed with a terminal illness at any time. Your life expectancy must be below a certain amount to qualify for this particular rider. In this scenario, you will be able to access a portion of your death benefit early to pay medical bills and other related expenses.
Unique features of Farmers Insurance Group
Farmers is unique in that it offers a very wide variety of insurance products. Apart from 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 nationwide. This is great for customers who want to build a relationship with their insurance agent and get the guidance they need when buying insurance. While you can’t buy a policy directly online, Farmers has 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 submit claims online. Farmers also has a mobile appwhich 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 financially stable provider. One way to check this is by looking at the insurer’s financial ratings. There are many companies that evaluate the financial stability of insurers, the most famous of which is AM Best.
Farmers Insurance Group currently has AM Best rating. 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 every other economic downturn can give policyholders 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 performs and whether or not they are a good fit for you. Of course, you’ll want to take reviews because everyone has their own unique situation and experience with the company.
Compared to other insurers of the same size, Farmers receives fewer complaints per year. This is stated according to the data of the National Association of Insurance Commissioners. The company has also been accredited by 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 auto insurance, not life insurance.
Although the company receives relatively few complaints, some customers are frustrated with their relatively limited customer service options. They do not allow you to buy any policies online and their customer service team is only available by phone or email during certain hours. They don’t have 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: which you can use to decide which policy is right for your needs. From there, you can either use their directory to find an agent near you, or you can choose to get an online quote.
If you decide to move forward at the end of your online quote, the site will put you in touch with an agent you can speak with 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 the more specific details of your insurance policy, including any riders you need. You’ll also be able to choose the amount of coverage that makes sense for you.
Most 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 affect your final premium rates.
If you want help shopping for a Farmers policy, our agents can help you with a recommendation.
Are the farms legit?
Yes, Farmers is a legitimate and 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 have a very informative website where you can get quotes.
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 also very affordable, with agents located throughout the United States.
When choosing a life insurance policy, it’s always best to get quotes from multiple providers and compare your options. This is because each insurer has its own method of calculating premiums, so your costs and the options available to you can vary widely between providers. You may be surprised which providers can offer you the best deals.
