FARMERS INSURANCE REVIEW

Planning for your future | Life Insurance

Farmers Insurance Review

Farmers InsuranceFarmers Insurance Review

Life insurance is an important investment and one that should be a part of the financial strategy for every person. The secret lies in finding the right type of life insurance policy – one that covers an extensive range of needs for survivors. This will include the future college education costs, everyday living expenses, payment of debts, mortgage, and child support. If you are looking for the right life insurance policy, you must have come across the name of Farmers Insurance.

Farmers New World Life Insurance Company has been around for several years and is a household name in the insurance industry. It is a well-known insurance provider and you must have listened to and sung their famous jingle, “We. Are. Farmers!” They advertise and promote their different insurance products and services, which include homeowner’s blunders, and car accidents. However, did you know that they also offer some of the best life insurance policies and products around?

We are going to cover all the insurance products offered by Farmers Insurance and review their financial strength. This is our review of the Farmers Insurance Group.

Company History

Farmers Insurance Group has been around for the better part of 90 years and has been offering outstanding insurance products at affordable rates. This has allowed the insurance provider to make a substantial name for itself in the industry and over the years, turned it into a diversified and important insurance service provider. It is ranked as the 4th largest home insurer and 6th largest auto insurance carrier in the United States. The company has also introduced an extensive range of insurance coverage products designed to add greater convenience into the lives of people.

Farmers Insurance Group is one of the biggest insurance service providers in the United States and has more than 19 million individual policies. It serves over 10 million households. The company is licensed and sells insurance products in all 50 states in the United States. It has more than 48,000 captive and independent insurance agents. Farmers Insurance is a part of the Farmers Group Inc., which consists of the Famers Insurance Exchange, Farmers Truck Insurance Exchange, and the Farmers Fire Insurance Exchange.

Farmers Insurance is headquartered in Los Angeles, California and provides administrative and management services to all their exchanges.

Company Overview

Apart from offering quality insurance coverage to millions of Americans, Farmers Insurance is famous for its corporate giving programs, along with educating all their consumers and policyholders. It is also renowned for aiding in major disasters. The mission of the company has always been offering time and resources for major issues in the country.

The company also started the Thank America’s Teachers Program and contributed more than $1 million in educational grants to deserving teachers in the United States. Farmers Insurance also has the Farmers Family Fund program to help employees who are going through rough times. Farmers Insurance allows policyholders and customers to easily amend their accounts, access insurance ID cards, pay premiums, and view policy details online through their mobile apps.

Financial Stability and Customer Service Ratings

Farmers Insurance has a strong financial background and is known for offering timely payments to policyholders. The company has gotten exceptional ratings from all major insurance rating organizations, including the A+ (Excellent) rating from A.M. Best Company. The Farmers Insurance Group is a qualified business from the Better Business Bureau (BBB), from June 1, 1951, and has received an A+ grade from the BBB.

The Farmers Insurance Group of Companies, includes Farmers Insurance, Bristol West Insurance, Foremost Insurance, 21 Century Insurance, along with their subsidiaries. Farmers Insurance is also known for their multiple sponsorships in the Tournament of Roses, NASCAR, PGA, and the rest of its alliances. Farmers Insurance has handled over 627 customer complaints over the last 3 years and closed 19 of them over the last year.

Out of the 627 complaints, less than half, about 301 of them were related to complications with the products and services of the company. Around 211 were about issues with sales or advertising, and 103 were about collection or billing issues. The rest were about delivery issues and warranty issues.

Farmers Life Insurance Coverage

Farmers Insurance provides an extensive range of life insurance products, which include permanent and term life policy options. The term life insurance policy offers death benefit protection, along with savings build-up or monetary value. This makes their term life policy affordable for younger people who are in good health when they first apply to the policy.

There are a lot of term life insurance options offered by Farmers Insurance for people to choose from, and these include Value Term and Simple Term Life.

Ø  The Value Term

This plan provides a guaranteed, and level death benefit amount, along with a locked premium that can’t increase during the life of the policy. The value term plans can be purchased for 10, 20, or 30 years, along with a benefit amount starting at $150,000.

Ø  The Simple Term Life

The plan lets applicants apply for the policy without a medical examination. The coverage starts at $75,000 and the durations available are 10, 20, and 30 years.

Ø  Decreasing Term Life

This plan is a great option for people, who want a temporary cover to accommodate for a need, like decreasing the balance of their mortgage. If you choose this plan, the death benefit will keep on reducing until it gets to 20% of the overall value. The good news is that the premiums will remain level, and the coverage will begin from $25,000 or $50,000 in other states. The term duration for these plans are 15, 20, 25, and 30 years.

All the different term life insurance options offered by Farmers Insurance can be converted to a permanent policy without presenting any evidence of future insurability.

Ø  Permanent Life Insurance

Farmers Insurance also provides several options for permanent life insurance, which comes with a death benefit protection plan, along with a cash value component. The cash value portion allows money to grow over time with a tax-deferred basis, so no taxes will apply to the funds until you withdraw them.

Farmers Insurance provides universal life insurance and whole life insurance policy options as well.

Ø  Whole Life Insurance

Whole Life Insurance is meant to cover individuals for their entire life, and the great part is that the premiums on the whole life insurance policy will stay level throughout. This means you don’t have to worry about rising premiums when you get older, or when you suffer from any health complications. The insurance coverage amount in the whole life policy will remain the same. Farmers Insurance offers three different whole life insurance policies, which include the following:

  • Farmers Premier Whole Life
  • Farmers Graded Death Benefit Whole Life
  • Farmers Essential Life Simple Whole Life

Ø  The Premier Whole Life Insurance

This insurance plan provides level insurance coverage throughout the lifetime of the policyholder. The plan offers guaranteed level premiums along with guaranteed cash value growth. It comes with an extensive array of options, which include adding different policy riders and customize the plan to fit the specific needs of the policyholder.

Ø  The Farmers Graded Death Benefit Whole Life Insurance

This insurance plan offers guaranteed level premium and cash value, but with lower coverage. The insurance plan has a simple underwriting process, which makes it easily accessible for people, who haven’t qualified for life insurance. They can do that by only paying a part of the total amount, and if the policyholder dies, but has been covered for more than 2 years, the full coverage amount will be paid.

This whole life insurance coverage is great for people who want to use the coverage for the costs of the funeral and to cover other expenses like a burial plot, a headstone, transportation, flowers, and a memorial service.

Ø  The Farmers Essential Life Simple Whole Life Insurance

This insurance policy adds the standard guarantees offered in whole life insurance, along with the different option riders added to the policy. The insurance plan provides guaranteed level premiums and cash value growth, and the coverage is payable to policyholders till the age of 100. There is simplified underwriting offered in the plan, and if the policyholder has multiple insurance policies with Farmers Insurance, they will qualify for a premium discount on the total coverage.

Ø  Universal life insurance

This is another kind of permanent life insurance offered by Farmers Insurance and features plans that provide flexible premium payments. Universal life insurance plans come with easily adjustable benefits and coverage levels, and there are two other options offered in the universal life insurance coverage plan, which includes the following:

1.      Farmers Essential Life Universal Life

This insurance plan lets policyholders choose the timing of their premium payments, to ensure that their needs are met, even if they change over time.

2.      Farmers Index Universal Life

This insurance plan ensures the cash value performs, based on the underlying market index and the returns being offered from there.

Other Insurance Products Offered

Farmers Insurance Group offers a plethora of outstanding life insurance products, but that is not all that you can avail from Farmers. It is well-known to provide an extensive range of coverage products to people in the United States. Here are some of the other insurance products offered:

The Bottom Line

Farmers Insurance Group is an outstanding insurance company and is one of the best insurance service providers in the United States. It offers comprehensive coverage plans, along with a variety of different auto insurance options to everyone. The insurance company has acquired a formidable reputation over the years, and is renowned for their competitive rates, and corporate giving efforts. It has a lot of different special programs and discounts, which make it an attractive option for everyone.

The one thing that may go against Farmers Insurance is that they don’t allow people the option to buy coverage online, and they have an inconsistent rate structure.

This means that you won’t find it easy to search for better options where you live. If you are interested in buying life insurance policies and plans, then you should always compare the rates and coverage before signing a contract.

Farmers Insurance Group is highly rated in the industry and has been proudly delivering outstanding life insurance coverage policies to millions of Americans for years. However, there are always insurance plans with better rates and coverage available in the market, so do your research before buying one.