Life insurance is an important purchase, but with hundreds of different companies, finding the perfect policy isn’t always easy.
Farmers Insurance is a brand many people know, thanks to its catchy “We Are Farmers” advertisements, but is Farmers the right choice for life insurance?
This Farmers Life Insurance review will cover the pros and cons of this nearly century-old insurer so you can see if it’s a good fit for your life insurance needs.
Farmers Life Insurance Products
Farmers New World Life Insurance offers a nice assortment of basic life insurance options. Here are a few of the features of each policy.
18 - 65 years
Starts at $75,000
Value Term Life
18 - 75 years
Starts at $150,000
EssentialLife® Simple Whole Life
15 days - 80 years
Starts at $15,000
Graded Benefit Whole Life
18 - 80 years
$5,000 - $30,000
EssentialLife® Universal Life
15 days - 80 years
Starts at $50,000
18 - 69 years
$37,500 - $200,000
About Farmers Life Insurance Products
- High Minimum Coverage Amounts: Shoppers who want a smaller policy may be disappointed in Farmers’ options. You’d need to buy at least $150,000 in coverage for Farmers’ traditional level term policy, for example. The simplified issue term requires at least $75,000 in coverage.
- Lower Maximum Age Limits: It’s easier to age out of eligibility for a Farmers Life Insurance policy, especially if you smoke. For example, a 46-year-old man who smokes couldn’t buy a 30-year term. A 66-year-old wouldn’t qualify for any simplified issue (no-exam) term policy with Farmers.
- Not available in New York State: Insurance is a state-by-state industry, and New York State shoppers can’t access this coverage.
- Lower Complaint Ratio: The complaint ratio of 0.71 from the National Association of Insurance Commissioners (NAIC) shows Farmers is a little better than average at customer service.
- Higher A.M. Best Rating: Only the elite insurers top Farmers’ A.M. Best rating of A. This shows the company’s commitment to financial stability.
- Graded Benefit Max is a Bit Higher: Shoppers could get up to $30,000 in guaranteed issue coverage through Farmers. This is coverage that almost anyone can qualify for, and many insurers top out this coverage at $20,000 or $25,000. (Older shoppers, 65 and older, will have a harder time getting approved for the full $30,000.)
- Online Tools Are Nice: Life insurance is a slow-changing industry. Some leading insurers still don’t sell coverage online. Farmers is a pioneer in online tools for insurance shoppers. The site is sleek and helpful in most cases.
Now, on to the big question: How much would you pay for a policy?
Farmers Life Insurance Rates
Dozens of high-quality life insurance companies compete for your business, especially when you’re on the younger and healthier side of the applicant pool.
This is great news because comparing rates can save you up to 50% for the same coverage.
For example, a 38-year-old male looking for a 20-year term life insurance worth $500,000 would pay Farmers Insurance a monthly premium of about $50.
That’s a pretty good deal! But life insurance is one of the most individualized financial products you can buy.
The details of your life will directly impact your premiums.
A quote tool, like the one below, can help you compare rates from many different life insurance companies to ensure that you get the best deal possible.
Quotes offer ball-park figures to compare. Only the full underwriting process can determine your actual premium rate.
Farmers excels with a variety of insurance coverages, such as home, auto, renters, and even umbrella policies for additional personal liability coverage.
This kind of full-service insurer opens up an opportunity to save by claiming multi-policy discounts.
In some rare cases, this discount has subsidized the entire life insurance premium payment for multi-policy holders.
Is Farmers Insurance a Good Company?
Farmers Insurance was founded in 1928 and currently insures more than 10 million Americans, making it a financially sound company.
A.M. Best considers Farmers an excellent company, giving them an A rating.
If you’re looking for a safe and sound company, Farmers Insurance fits the description.
How to Get Lower Monthly Premiums
So how much would you pay for a Farmers New World Life Insurance policy?
I wish I could tell you a simple answer, but your premiums will vary widely depending on your age, health, job, habits, and policy size.
Farmers does tend to offer competitive life insurance rates, and it’s a company worth checking out.
To get the best possible rates from Farmers or any insurer, you can take a few steps to become a less risky life insurance applicant:
Quit Unhealthy Habits
Smoking or using other forms of tobacco often doubles or triples the cost of life insurance because these habits put your overall health at greater risk. Excessive drinking will also inflate life insurance rates.
Smokers looking for life insurance fall into their own rate category, and this category can also skew age availability.
For example, with Farmers, a 46-year-old who smokes can no longer get a 30-year term life insurance policy. Meanwhile, a 50-year-old who does not smoke can still buy this term length.
If you want to save thousands of dollars on your insurance plan and also open up more possibilities for higher quality coverage, it’s time to put those cigarettes down.
Improve Your Health
Improving the rest of your health can help your life insurance rates, too.
After you complete the initial paperwork for a policy, Farmer’s Life Insurance (or any other company that you choose) will schedule a paramedic to come to your house and complete a simple medical exam.
During this medical exam, the paramedic will measure your weight, blood pressure, and cholesterol.
The health care worker will also take a blood sample and a urine sample.
Underwriters will see the results of these tests and measurements. If they see warning signs of diseases, they’ll charge higher rates.
If you want to save money, it’s time to start focusing on your health and working to improve it.
I’m not a doctor, and I won’t pretend to be one by suggesting a health routine for you. You’ll have to figure that out for yourself.
Just know that the healthiest applicants can save hundreds of dollars per year on life insurance and/or qualify for more coverage.
Even small improvements could be enough to drop you into a better rating classification.
Reduce Your Coverage Amount
This is often overlooked as a cost factor with life insurance.
Buying only the coverage amount you need will save money.
You wouldn’t buy twice as much furniture as you need, but it’s easy to buy too much life insurance.
The more insurance coverage you buy, the more you’ll pay in monthly premiums, so make sure that you aren’t trying to purchase more coverage than your family needs.
Is Farmers Life Insurance the Best for You?
In summary, Farmers offers a nice mix of modern technology, financial stability, and policy options.
Several insurers can out-perform Farmers in any one of these areas, but very few single insurers can beat Farmers at all three.
Farmers Life is only one company on the market, and no company will always be the cheapest.
In the insurance industry, the best rates tend to be a moving target, so it’s essential to shop around. We can help you find the company with the lowest rates.
With companies such as Prudential, Protective, Transamerica, and Banner Life, it’s possible to find A+ rated insurance while saving about 50% compared to shopping with only one company — even if that one company is a quality insurer like Farmers.
Because there are so many options, you could spend days calling different agents and getting quotes.
Your time is valuable, don’t waste it on the phone or filling out forms online, we can do it for you.
Nobody wants to think about his or her own death, but you need to get your family the protection they need.
Please call us at 1-800-712-8519, to get a quote or apply for life insurance, or compare rates by using our quote tool on this page.