In most situations, life insurance will be an integral part of one’s overall financial strategy. Most proceeds from a life insurance policy can be used for a broad range of items that are needed by survivors. These may include the payoff of debts, the payment of every day continuing living expenses, and the payment of a child or a grandchild’s future college education costs.
Before committing to purchase a life insurance policy, it is imperative to ensure that you have the right sum of coverage, as well as the right type. Also, the insurance company that you purchase your policy through can also make a big difference.
That is because you want to be confident that the company is secure and stable from a financial standpoint, and that it will be able to quickly pay out a claim if or when the time comes. One company that meets these criteria is Farmers Insurance Group.
The History of Farmers Life Insurance
Farmers Insurance Group has been in the business of helping people to protect what is important to them for nearly 90 years. Over the years, Farmers has become an important and diversified insurer, being ranked as the 6th largest auto insurance carrier, and the 4th largest home insurer in the United States. The company also offers a long line of other insurance coverage products.
Today, Farmers serves more than 10 million households, with more than 19 million individual policies. The company is licensed to sell its insurance products in all 50 of the U.S. states, and these are primarily offered via more than 48,000 independent and captive insurance agents.
The company is mainly comprised of three reciprocal insurers. These include Farmers Insurance Exchange, Farmers Fire Insurance Exchange, and Farmers Truck Insurance Exchange. These are all owned by the company’s policy holders, as Farmers is set up as a mutual insurer. Farmers Group, Inc., and its subsidiaries, in their capacity as attorneys-in-fact, provide management and administrative services to these exchanges. Farmers Insurance is headquartered in Los Angeles, California.
Farmers Life Insurance Review
In addition to providing insurance coverage where it is needed, Farmers is also known for its corporate giving programs, as well as its education of policy holders and consumers, and its assistance during major disasters. The company’s mission has always been to offer time and resources towards these issues.
For example, through the company’s Thank America’s Teachers program, Farmers will contribute more than $1 million in educational grants to deserving teachers across the United States. The company also assists its employees who have fallen on hard times via its Farmers Family Fund.
Farmers makes it easy for its customers and policy holders to make changes to their accounts, view their policy details, pay their premiums, and even to access their insurance ID cards online. Customers may also do so via the company’s mobile application.
Insurer Ratings and Better Business Bureau Grade
Due to its firm financial footing, and its timely payment of its policy holders’ claims, Farmers Insurance has received excellent ratings from the insurer rating agencies, including an A+ (Excellent) from A.M. Best Company.
Also, Farmers Insurance Group has been a qualified business through the Better Business Bureau (BBB) since June 1, 1951. The company has been given a grade by the BBB of A+, which is on a total grade scale of A+ through F.
Over the previous three years, Farmers Insurance has completed a total of 627 customer complaints, of which 19 have been closed out over the past 12 months. Of the total 627 complaints, 301 regarded complications with the company’s product and/or service, 211 were related to advertising and/or sales issues; 103 were related to billing and/or collection issues, 8 were related to delivery issues, and the remaining 4 had to do with guarantee/warranty issues.
Life Insurance Coverage Offered Through Farmers
Farmers offer a broad range of life insurance products, including both term and permanent policy options. Term life insurance provides death benefit protection, without any monetary value or savings build up. Because of this, term life insurance policies are often quite affordable – especially for those who are younger and in good health at the time of application.
At Farmers Insurance, there are various term life insurance options from which to choose. These include the Simple Term Life and the Value Term. The Value Term plan offers a level, guaranteed death benefit amount, as well as a premium that is locked in and cannot increase the duration of the policy. These plans can be purchased for 10, 20, or 30 years, with a benefit amount that starts at $150,000.
The Simple Term Life option allows applicants to skip the medical examination to allow the policy to be approved more quickly. Here, coverage begins at $75,000 and the term durations are ten years, 20 years, and 30 years.
There is also a Decreasing Term Life option through Farmers. These policies can be a viable alternative for people who are wanting to cover a temporary and a “vanishing” need, such as the decreasing balance of a mortgage.
With this plan, the death benefit will decrease over time to 20 percent of the original value. The premiums, however, will remain level. Coverage starts at $25,000 (or at $50,000 in some states). The term durations on these plans are 15, 20, 25, and 30 years.
All the term life insurance options that are offered via Farmers Insurance are convertible to a permanent policy – in some cases, without the insured having to present evidence of future insurability.
Farmers also offers several different options for permanent life insurance. With a permanent life insurance plan, there is both death benefit protection, as well as a cash value component in the policy. The money in the cash value portion can grow over time on a tax deferred basis, meaning that there is no tax due on the gain of these funds unless or until they are withdrawn. Farmers offers both whole life and universal life insurance policy options.
Whole life insurance, as its name implies, is designed for covering an individual for the entire his or her life. The premiums on a whole life insurance policy will typically remain level. There is no worry about the premium going up, even as the insured gets older, and even if they contract an adverse health condition. The amount of insurance coverage on a whole life policy will also usually remain the same.
Farmers has three primary whole life insurance plans available. These include:
- Farmers Premier Whole Life
- Farmers Graded Death Benefit Whole Life
- Farmers Essential Life Simple Whole Life
The Premier Whole Life insurance plan offers level insurance coverage for the insured’s entire lifetime. This plan provides guaranteed level premiums, as well as guaranteed cash value growth. There are a broad range of face amounts available, and there is also the option to add several different optional policy riders to customize better the plan to fit specific needs.
The Farmers Graded Death Benefit Whole Life plan also offers guaranteed cash value and guaranteed level premium, with a lower face amount of coverage. This policy has a more simplified underwriting process, so those who may not otherwise qualify for life insurance may be able to obtain this policy. During the first two years that this policy is in force, the death benefit is graded. This means that just a portion of the actual face amount will be paid out to the beneficiary. If, however, the insured dies after he or she has been covered for more than two years, the full amount of the benefit will be paid.
Oftentimes, this type of whole life insurance coverage is purchased for having loved ones use the benefit to pay for one’s funeral and/or other final expenses, such as a memorial service, flowers, transportation, a headstone, and a burial plot – all of which can add up (in some cases to more than $10,000).
The Farmers Essential Life Simple Whole Life insurance policy essentially combines the traditional guarantees of whole life insurance, with various optional riders that can be added (at an additional premium charge).
This plan offers guaranteed level premiums, as well as guaranteed cash value growth. The plan is payable to the insured’s age 100. It, too, offers simplified underwriting. And, if the insured also owns other insurance policies through Farmers, they may be able to obtain a premium discount on this coverage.
Farmers also offers universal life insurance – which is another form of permanent life insurance. These plans offer more flexible premium payments than a whole life insurance option. Universal life will also often have adjustable benefits and coverage levels. Farmers Insurance offers two options for universal life insurance coverage. These include the:
- Farmers Essential Life Universal Life – This policy allows the insured to specify the timing and many their premium payments (within certain guidelines), as their needs change over time.
- Farmers Index Universal Life – With this plan, the performance of the cash value will be based on the return of an underlying market index.
Other Products and Services Available
In addition to life insurance, Farmers Insurance Group also offers an extensive list of other coverage products. These include the following:
- Auto insurance
- Home owner’s insurance
- Renters insurance
- Pet insurance
- Motorcycle insurance
- Landlord insurance
- Umbrella insurance
- Business insurance
- Boat insurance
- Personal watercraft insurance
- 5th wheel insurance
- RV / Motorhome insurance
- Off road vehicle insurance
- Travel trailer insurance
Farmers also offer offers a Farmers Rewards Visa Card. Through this card, users can earn points on various products and services that they purchase (such as gas and home improvement items) by using the card – including Farmers products.
How to Get the Best Life Insurance Premium Rates on Coverage with Farmers
If you are seeking the best life insurance premium rates on coverage with Farmers Insurance Group – or from any insurer – it is recommended that you work with an independent insurance agent or broker who can provide you with information on policies and prices on coverage from numerous different insurers. That way, you can shop and evaluate, and from there you can decide which will ultimately benefit you the most.
When you are ready to see the life insurance coverage options and prices that are available to you, we can help. We are an independent life insurance brokerage, and we partner with many of the best life insurers in the industry today. We can support you in getting all the essential details that you require for making a well-informed insurance buying decision – and we can do so for you swiftly, simply, and conveniently, all without you having to meet in person with an insurance agent. If you are ready to proceed, then all you should do is just simply fill out our quote form.
We understand that the purchase of life insurance can be a bit overwhelming. There are many different variables to choose from – including plan, coverage amount, and even the insurer that you opt to purchase through. But, the good news is that the process of finding and purchasing the right life insurance product for you can be made much easier when you are working with an experienced ally on your side. So, contact us today – we’re here to help.