Here Is Why You Should Kiss Your Farmers Life Agent Goodbye

Home » Blog » Company Reviews » Here Is Why You Should Kiss Your Farmers Life Agent Goodbye
  • farmers life insurance

In this Farmers Life Insurance review, you will learn why it’s in your best interest to work with a broker and not a captive agent. Farmers may be suitable when it comes to auto and homeowner insurance, but when it comes to life insurance, it’s not in their wheelhouse. After writing many life insurance company reviews, you start seeing the strengths and weaknesses of every carrier on the market.

While it may be counterproductive for agents to acknowledge some of the carriers’ faults (they only sell one company), brokers (represent multiple companies) would embrace the gap because they have more carriers from which to offer, and therefore, they are able to place you with the right one for your situation.

Related:

Disclaimer: I am not a Farmers agent. I am a licensed broker who gives his personal opinion about their life insurance products and services.

Farmers History

John C. Tyler and Thomas E. Leavey met during the 1920s in CA. They both recognized that farmers and ranchers had a better driving record than urbanites and, therefore, warranted lower insurance prices. In 1927, they received a loan from Bank of America to open their insurance agency, and by 1928, they opened the door to a new company called Farmers Automobile Inter-Insurance Exchange in downtown Los Angeles, California.

Today, Farmers provides other insurance and financial products, such as home and small business and life insurance. They have more than 48,000 exclusive agents and 21,000 employees. Farmers is a subsidiary of the Swiss company, Zurich Insurance Group. Farmers sells and underwrites life insurance under the name Farmers New World Life Insurance Company.

Farmers Financial Ratings

According to A.M. Best, Farmers has an A (Excellent) rating.

Life Insurance Products Offered by Farmers New World Life Insurance Company

Farmers offers term life, whole life, universal life, and accidental death insurance. Below, I will review each policy in great detail.

Farmers New World Term Life Insurance

Young families favor level term life insurance during the child-raising years or when buying a home because it offers the highest amount of coverage for the lowest initial cost. Further, since most financial obligations decrease over time (mortgage is paid, children grow up), they see no reason to get a permanent policy.

It’s also called “pure insurance” because you only pay for coverage without the added savings component other permanent coverages offer. The typical lengths are 1–30 years, with a 20-year term being the most common one. The death benefit and the premium amount are guaranteed throughout the initial term period. Farmers offers three types of term life insurance:

  1. Simple Term: This is a simplified issue life insurance which doesn’t require an applicant to undergo an exam as part of the underwriting process or lengthy forms to fill out. Instead, the applicant needs to answer “yes or no” to a few health questions on the application. Most underwriting decisions are made fairly quickly, usually the following business day.
  2. Value Term: This is a fully underwritten term life insurance which requires the applicant to undergo an exam as part of the underwriting process. Like all term coverages, the death benefit and premium payment are guaranteed to remain the same throughout the initial period.
    • Issue ages: 18–65
    • Level premiums for 10-, 20-, or 30-year period
    • Minimum face amount: $150,000
    • Fully convertible to whole life
  3. Decreasing Term: A decreasing term insurance is designed to mimic the declining mortgage loan balance over time. The death benefit decreases monthly, and at the end of the duration, it will reach 20% of the original purchased face amount.
    • Level premiums for 15-, 20-, 25-, or 30-year period
    • Minimum face amount: $25,000
    • Fully convertible to whole life

Farmers New World Whole Life Insurance

Whole life insurance is a type of permanent coverage which guarantees a level premium payment and death benefit through the insured’s lifetime. Also, a whole life policy has a guaranteed cash accumulation benefit which you can access in the future by taking a loan or when you surrender your policy. Farmers offers three type of whole life:

  1. Simple whole life: This is a simplified issue whole life insurance payable to age 100. It doesn’t require an exam, only a few health questions.
    • Issue ages: 15 days–80 years
    • Face amount: $15,000–$250,000
  2. Premier whole life: This is a fully underwritten whole life coverage with the same benefits as the simple whole life has. The only distinction is this policy has a higher death benefit and therefore requires an exam.
    • Issue ages: 15 days–80 years
    • Minimum face amount: $150,000
  3. Graded whole life: This is a graded benefit plan that is geared for those who are not in good health and are looking for final expense type of protection. It’s a simplified issue policy that provides level premium and cash value accumulation. However, the death benefit is only guaranteed to be paid in the third year.
    • Issue ages: 18–80
    • Maximum face amount: $30,000
    • 2-year graded benefit clause

Farmers New World Universal Life Insurance

Universal Life insurance (UL) is another type of permanent coverage which offers cash value accumulation with a guaranteed death benefit to be in effect no matter when the insured dies.

Universal life provides greater flexibility when it comes to adjusting the death benefit or premium payment amount and frequency over time. The cash value in the account grows tax-free, and the insured can access it through a straight withdrawal or a loan. Farmers offer two types of universal life:

  1. EssentialLife Universal Life: This is a traditional universal life policy that gives you the flexibility to adjust the coverage based on your life’s events.
  2. Farmers Index Universal Life: This has the same attributes as UL but the cash value in the policy is linked to a market index and, therefore, provides a higher growth potential than a traditional UL.

Farmers New World Accidental Death Insurance

Accidental death and dismemberment policies pay benefits only if you die as a result of an accident-related event. So, if you had a heart attack and died as a result of that, the policy will pay nothing to your heirs.

There are no health questions or an exam to take, and you are pre-approved as long as you are 18 to 69 years old, regardless of health issues or occupation. Farmers offers $50,000 to $200,000 in accidental death insurance.

Farmers vs. Other Carriers’ Sample Monthly Rates

Farmers life insurance sample rates

Male 20-year Term $250,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $13.12 $17.85 $41.50 $111.59
 Banner $13.33 $19.26 $40.85 $111.13
 AIG $13.54 $19.38 $42.73 $114.74
 Foresters $13.56 $18.81 $42.66 $114.84
 Lincoln$13.56 $18.38 $46.55 $190.53
 Mutual of Omaha $13.56 $20.08 $46.55 $134.05
 AAA $14.52 $20.68 $47.74 $123.86
 SBLI $14.79 $21.67 $51.68 $147.70
 Transamerica $20.34 $26.45 $51.17 $135.88
 State Farm $18.70 $30.23 $58.95 $147.90
 Allstate $31.46 $29.92 $60.50 $160.16
 Farmers $25.81 $36.85 $78.10 $257.88

Female 20-year Term $250,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $11.83 $15.27 $31.18 $77.61
 Banner $11.74 $15.67 $31.17 $78.83
 AIG $11.81 $18.51 $35.59 $89.66
 Foresters $12.47 $16.63 $31.94 $85.97
 Lincoln$12.08 $16.14 $32.77 $160.13
 Mutual of Omaha $12.64 $19.21 $36.05 $94.02
 AAA $13.20 $18.04 $36.74 $85.80
 SBLI $13.31 $18.99 $36.46 $90.37
 Transamerica $13.98 $21.72 $40.64 $110.51
 Allstate $14.74 $23.98 $46.64 $113.08
 State Farm $22.40 $34.80 $66.35 $138.78
 Farmers $19.14 $36.02 $73.72 $226.63

Male 20-year Term $500,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $20.21 $28.38 $75.68 $205.97
 Banner $20.12 $32.68 $74.39 $205.97
 AIG $20.24 $30.62 $77.76 $213.57
 Foresters $21.00 $31.50 $79.19 $223.56
 Lincoln$21.00 $30.28 $78.71 $214.33
 Mutual of Omaha $21.61 $33.42 $85.05 $249.55
 SBLI $21.32 $36.92 $96.06 $286.85
 AAA $23.32 $34.76 $89.32 $238.48
 Transamerica $23.65 $43.00 $95.46 $253.70
 State Farm $28.30 $41.75 $96.15 $273.20
 Allstate $32.56 $52.80 $110.44 $281.16
 Farmers $39.77 $58.10 $138.93 $483.91

Female 20-year Term $500,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $17.63 $24.94 $55.47 $139.32
 Banner $17.11 $25.49 $55.47 $145.00
 AIG $17.21 $27.16 $63.06 $163.40
 Foresters $18.81 $27.13 $57.75 $165.81
 Lincoln$18.16 $26.16 $58.41 $148.05
 Mutual of Omaha $18.99 $28.61 $64.05 $169.93
 Principal $19.69 $26.69 $59.24 $149.27
 SBLI $19.14 $29.67 $65.87 $173.03
 AAA $20.24 $29.48 $66.44 $162.36
 Allstate $27.28 $40.92 $82.28 $190.08
 State Farm $33.05 $53.50 $109.20 $258.85
 Farmers $28.93 $58.10 $129.76 $420.58

Male 20-year Term $1,000,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $33.97 $51.17 $142.33 $396.03
 Banner $37.84 $58.48 $140.61 $406.63
 AIG $34.95 $53.98 $144.80 $418.14
 Foresters $34.13 $56.00 $150.50 $438.38
 Lincoln$49.00 $70.00 $147.70 $418.78
 Mutual of Omaha $37.80 $59.68 $161.18 $481.43
 Principal $38.50 $55.56 $147.88 $418.78
 SBLI $35.24 $56.03 $147.73 $457.62
 AAA $41.36 $60.72 $169.84 $462.88
 State Farm $44.35 $72.25 $174.85 $519.35
 Farmers $56.01 $98.51 $252.67 $808.48

Female 20-year Term $1,000,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $28.81 $43.43 $101.91 $267.03
 Banner $28.72 $50.09 $110.51 $294.55
 AIG $28.89 $47.92 $117.12 $309.15
 Foresters $29.75 $47.25 $107.63 $322.88
 Lincoln$38.50 $53.38 $108.50 $283.33
 Mutual of Omaha $31.68 $50.93 $119.18 $324.80
 Principal $32.16 $46.81 $108.94 $283.50
 SBLI $29.67 $44.28 $104.57 $272.92
 AAA $35.20 $52.80 $124.08 $311.52
 State Farm $53.95 $87.85 $199.25 $499.35
 Farmers $41.02 $97.68 $233.51 $584.33

*All rates quoted on this page are for a super-preferred healthy individual who does not use tobacco. Monthly rates are updated as of Aug 2018 and are subject to underwriting approval.*

Bottom Line

Here are the reasons you should kiss your Farmers life agent goodbye:

  1. Farmers is too expensive. Check out the table above with more than ten companies and see how Farmers compares with them. Life insurance is a side gig for them, and they offer this to their current clients with the hope that, if they have auto and home insurance, they may get life insurance also. The other companies only sell life insurance products, which gives them the opportunity to be profound and competitive since it’s their bread-and-butter product.
  2. Your choices are limited:
    1. Farmers’ simplified issue term life offers up to $150,000 in death benefit. Companies such as SBLI, Banner, or North American offer from $100,000 to $1,000,000 in no-exam life insurance.
    2. The term periods are only 10, 20 or 30 years. Most companies offer 15 and 25 years, respectively.
    3. The issue age is up to 65 years old. Most companies offer term life up to 80 years old.
  3. If you have pre-existing conditions, you are at the mercy of one company to accept your application. Any insurance broker knows that each company has its distinct way of underwriting an individual for coverage. Where one company rates you standard rate for your build, another will issue you preferred. Your trusted Farmers’ agent has only one company from which to offer, while brokers have dozens and will place you with the right one based on your unique situation.
  4. If you are looking for a final or burial expense policy, Farmers only offers a graded benefit plan, which isn’t a good choice. We work with Mutual of Omaha, Assurity, and Settlers among many others that provide level benefit plans provided you are healthy enough to qualify.
  5. If you are looking for other policies such as guaranteed universal life, single premium whole life, or survivorship coverage, you will not find it with Farmers and have to opt for another company.

Saving money on life insurance starts with comparison shopping. You can do just that by filling out the form on the right-hand side and get instant quotes or give us a call at 866-326-3053 and let us work for you. We represent more than 50 carriers from which to choose and promise to show all the available options and help you select the right one for you.

Ready to Save 62% on Term Life?

Don’t get trapped dealing with just one company, compare 50+ at once!

Get Your Quote
2018-09-28T07:04:36+00:00August 16th, 2018|Categories: Company Reviews|0 Comments

About the Author:

Ron is a licensed life & health insurance broker. He has two amazing rescued Pitbulls. He also enjoys real food, strong coffee, ultra runs, critical thinking, and reading.

Leave A Comment