Farmers Life Insurance Review

Term, whole, and universal life insurance plans with many options

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Farmers Insurance Life Insurance

Farmers Insurance Life Insurance

Our Take

Farmers Insurance sells universal, universal index, whole, and term life insurance policies that you can get through a Farmers Insurance agent. It is a good option for consumers who want to buy an insurance policy they can customize to their needs from a company that offers other types of insurance. 

  • Pros & Cons
  • Key Takeaways
  • Specifications
Pros & Cons
Pros
  • Offers some policies without a medical exam

  • Offers terms of 10, 20, and 30 years

  • Offers level premiums on terms and whole plans

  • Offers flexible premiums on universal life plan

  • Has an accelerated death benefit option as a rider

Cons
  • Coverage minimum for term life insurance is high, starting at $75,000

  • Whole life coverage only sold up to 80 years of age

  • One of its whole life insurance policies has a graded death benefit for two years

  • Doesn’t provide quotes for most policies on website

  • Unclear when a medical exam is required on some plans

Key Takeaways
  • Farmers Insurance offers several whole, term, universal index, and universal coverage options with and without a medical exam depending on your personal medical history and the plan you choose. 
  • The company offers several insurance riders that you can add to supplement your coverage.
  • Farmers Insurance offers several types of insurance including auto, motorcycle, umbrella, home, and renters insurance.
Specifications
  • Year Founded 1928
  • Kinds of Plans Whole, term, universal, universal life
  • Number of Plans 4 types, 6 policies
  • Payment Options Online, phone, automated payment, credit card
  • Official Website https://www.farmers.com/life-insurance/

Introduction

Farmers Insurance is an insurance company specializing in property and casualty insurance but which also offers whole, universal, universal index, and term life insurance policies. The company offers fully underwritten and simplified issue plans with a choice of riders to help you customize your coverage

We reviewed Farmers Insurance Group’s policy offerings, riders, pricing, customer service, industry ratings, and more to help you decide if their policies are right for you.  

Company Overview

Farmers Insurance Group is headquartered in Los Angeles and its policies are sold via independent insurance agents and the company’s own agents. In business since 1928, it works with over 48,000 agents and has 21,000 employees. The policies are sold over the phone and in person. 

Farmers Insurance Group is licensed for business in all states except for New York but may not provide life insurance in all those states. You will have to contact Farmers Insurance directly to find out if they provide coverage in your state.

Available Plans 

Farmers Insurance offers universal, universal index, term, and whole life insurance policies. Unsure what plan you need, Farmers Insurance has a Life Compass tool to help you determine your life insurance needs and get to know more about life insurance misconceptions. 

Term Life Insurance

Farmers Insurance offers two types of term coverage: Farmers Simple Term and Farmers Value Term. 

Farmers Simple Term

Farmers Simple Term issues coverage between the ages of 18 and 65 and starts with a minimum of $75,000 in coverage. This policy is usually issued without a medical exam. In fact, you can get a decision in as little as one business day after applying for this policy. 

Policies come in terms of 10, 20, and 30 years and include a guaranteed death benefit and level premiums that do not go up over the life of your initial term. The company’s term life policies are also convertible to whole life policies at any time under the conditions specified in the policy.

Farmers Value Term

Farmers Value Term provides coverage between the ages of 18 and 75 and a medical exam is required. The underwriting process takes longer for this policy, but your premiums might be lower than they would be under a simplified-issue policy if you are in good health. 

Policies come in terms of 10, 20, and 30 years with coverage starting at a minimum of $150,000 and no maximum coverage level. These policies guarantee the death benefit and level premiums over the life of your initial term. You can convert your coverage to a whole life policy at any time as long as you meet the conditions of the policy around policy conversion.

Note

Sometimes getting a medical exam can mean you save money on premiums. Ask an agent if it’s worth it to get an exam in your specific situation. 

Whole Life Insurance

Farmers Insurance offers two whole life insurance policies: the Farmers EssentialLife Simple Whole Life policy and the Farmers Graded Benefit Whole Life policy. 

The Farmers EssentialLife Simple Whole Life policy has a simplified underwriting process that might not involve a medical exam. The application process starts by answering just three medical questions on an application. 

Coverage is issued to people between the ages of 18 and 80 and is valid until age 121. It provides a guaranteed benefit after the first two years and a limited payout within the first two years (Farmers Insurance does not break down the graded benefit on the website; contact an agent for more details). The premiums on this policy are level.   

The Farmers Graded Benefit Whole Life policy provides coverage between the ages of 18 and 121 at amounts that range from $5,000 to $30,000 with a guarantee that your policy will accumulate cash value. There is a guaranteed death benefit which is limited if the policyholder dies in the first two years the policy is in place. You are guaranteed coverage without a medical exam, making it a good choice if you have health concerns that might limit your ability to get coverage otherwise. 

Universal Life Insurance and Universal Index Life Insurance

Farmers Insurance offers two universal life policies: the Farmers EssentialLife Universal Life policy and the Farmers Index Universal Life policy.

Farmers EssentialLife Universal Life

With the Farmers EssentialLife Universal Life policy, you can get coverage between the ages of 15 days and 80 years old. Coverage starts at $50,000 and gives you the flexibility to adjust your premiums and your benefit over time as needed and within Farmers Insurance’s underwriting guidelines. 

You can access the cash value on this policy via a loan and money grows in your policy on a tax-deferred basis. 

Farmers Index Universal Life

Like the Farmers EssentialLife Universal Life policy, you can get coverage between the ages of 15 days and 80 years and coverage starts at a $50,000 minimum. You can allocate part of your premium to be indexed to either the S&P 500 or the Russell 2000 index to help you build your policy’s cash value. However, you will not lose money if either index declines in value since it does not actually invest your money in the indexes but rather pays out a percentage of interest based on that index’s growth. For example, if the index you’ve chosen increases in price by 5% over the year, you will earn 5% on your policy’s cash value. 

The policy also has the option of fixed interest accounts with guaranteed minimum rates of return of 1% in the long-term fixed account and 0.1% in the short-term holding account. You can access your cash value via a policy loan and your investments grow tax-deferred. 

Expert Tip

Universal index life insurance is a good fit for people who are looking for an insurance policy that is also an investment vehicle, but if you’re looking for simple insurance, it might be more complex than you need.

Available Riders

Farmers Insurance sells several life insurance policy riders you can purchase for extra protection including: 

  • Critical illness insurance rider: This rider will give you a lump sum if you’re diagnosed with specified critical illnesses such as a heart attack, cancer, or a stroke. 
  • Accelerated death benefit rider: This rider allows you to get part of the policy’s death benefit in advance if you’re declared terminally ill and have a short life expectancy.
  • Disability waiver of premium rider: This rider will help you pay your policy premiums if you become disabled and might even help you supplement your income through a payout of part of your benefit depending on your health situation.

Riders can be added to all Farmer Insurance’s life insurance policies. However, they are not guaranteed-issue and might not be available in every state. 

Farmers Insurance does not list the prices of their riders on the website. To find out their pricing, you will have to call the company or talk to an agent. 

Customer Service: Good Phone and Online Options

Farmers Insurance has separate customer service hotlines for claims and customer service. The customer care center can be reached by calling 1-888-327-6335 from 7:00 a.m. to 11:00 p.m. CT Monday to Friday and 8:00 a.m. to 8:00 p.m. CT Saturday and Sunday.

The claim call center’s hours of operations are 24 hours a day and 7 days a week and they offer services in Spanish. You can also contact the company by phone at 1-800-435-7764, via your online account, or the mobile app. 

Customer Satisfaction: More Complaints Than Average 

The National Association of Insurance Commissioners (NAIC) provides ratings of insurance companies around consumer complaints to help consumers gauge a company’s customer satisfaction. A rating of 1 would indicate an average number of complaints. A rating under 1 would indicate fewer complaints than average and a rating higher than 1 would indicate more complaints than average.   

Farmers Insurance has an NAIC complaint index of 1.91 which means that the company receives more complaints than its competitors. In total, they have 0.11% of the national complaint market share. Many of the complaints received were for problems with billings and issues with coverage.  

Financial Strength: A (Excellent)

AM Best analyzes and gives companies ratings on their financial strength using factors including the company’s recent performance, future expectations, business profile, and balance sheet. These ratings help consumers determine how financially healthy a company is and if it will be able to meet its financial obligations. 

Farmers Insurance has an A (Excellent) rating from AM Best. 

Cancellation Policy: Must Contact the Company to Find Out

Farmers Insurance does not list their life insurance cancellation policies online. However, like most life insurance policies, it has what’s known as a  free look period, which is the time frame you have to cancel your insurance policy with no fees or penalties and still get all your premiums refunded. These periods generally last between 10 and 30 days. Call your Farmers Insurance agent to find out how long the cancellation period is and if there are cancellation fees after the free look period ends. 

If you purchase permanent life insurance with Farmers Insurance, you will likely need to fill out a surrender form when you cancel your policy. That will help Farmers Insurance calculate how much the surrender value of your policy is so that it can pay out the correct amount upon cancelation. 

Price Of Farmers Insurance Life Insurance: Varies By Policy Type

What you will pay for life insurance coverage from Farmers Insurance will vary depending on what kind of policy and coverage amount you’re purchasing, as well as factors including your age, gender, and general health. For instance, a 20-year level term policy for a 40-year-old woman who lives in Illinois and does not smoke would cost $58.10 a month. However, to get the most accurate quote, contact a Farmers Insurance agent directly as there are some issues with the online quote tool (e.g., it does not work if Farmers Insurance life insurance is not offered in your state, even if other policies are offered). 

Farmers Insurance offers discounts on policies if you get more than one policy or type of policy with them so you might save if you bundle your auto, home, and life insurance policies. 

How Farmers Insurance Compares to Other Life Insurance

While Farmers Insurance is better than its property and casual competitors, it doesn’t offer as many riders or policy options as companies who specialize solely in life insurance, and there are some companies such as GEICO you might want to consider.

Farmers Insurance vs. GEICO Review

Farmers Insurance and GEICO are both insurance companies that specialize in property and casualty insurance but also offer whole, term, and universal life insurance options. Both have excellent financial strength ratings, although GEICO has a slightly higher rating. Both also have a high number of complaints, although Farmers Insurance has a slightly higher number of complaints. However, GEICO doesn’t sell life insurance policies directly but works through a collaboration with LifeQuotes to sell policies underwritten by companies that specialize in life insurance 

These are some other key differences between Farmers Insurance and GEICO: 

  • GEICO’s collaboration with LifeQuotes gives you access to more insurers than with Farmers Insurance, and as such, offers more insurance options for riders and policies. 
  • GEICO offers more rider options on their coverage. 
  • GEICO allows you to get up to $25 million in coverage. 
  • Farmers Insurance allows you to buy your insurance directly from them, which means that your customer service and claims process is clearer and handled in-house. 

Read our full GEICO Life Insurance review.

  Farmers Insurance GEICO
Types of Plans Whole, term, universal, universal index Whole, term, universal
Customer Service  Phone, online, mobile, mail Phone, online, app, agent, chat
NAIC Complaint Index 1.91 1.41
Optional Riders Available Yes Yes
AM Best Rating A A++

Final Verdict

Farmers Insurance is well-known for its auto and home insurance policies, however, they also offer a surprising number of life insurance policy options for a company that is primarily focused on selling other forms of insurance. If you’re already getting your home and auto insurance from Farmers Insurance, it might be convenient for you to get all your insurance in one place and manage all your policies on the company’s online site or mobile app. 

However, whether Farmers Insurance is a good choice for you will depend on what your life insurance needs are. For example, the policies the company offers have a relatively high minimum insurance amount on term policies and you might not want that much insurance. If you want lower minimums, you should consider another company. 

 

Methodology 

All of our reviews of life insurance companies are based on extensive research and analysis of each company’s offerings, customer service, financial stability, cost, and more. For each company, we compared the life insurance products offered, as well as available features, and reported customer experiences. Visit our life insurance review methodology for the full breakdown of what we evaluated for over two dozen companies.