You have likely heard of Farmers, although the full company name for their life insurance division is Farmers New World Life Insurance Company. You may even be able to sing the Farmers jingle in your head right now (“We. Are. Farmers!“).
However, you usually see their comical television advertisements regarding car accidents, homeowner’s blunders, and other types of coverage.
Over the years, Farmers has become a provider with a wide range of coverage options, including business, recreational, renters insurance, and personal liability umbrella coverage.
Where does life insurance fit in, though?
The following is predominately a Farmers New World Life Insurance Company Review based on our own opinion.
In this review, we showcase the company’s history, their financial solvency and strength (including ratings), and everything you need to know about their life insurance products.
As Farmers continues to build their brand and their large suite of insurance products, you may want to consider them in your insurance portfolio.
Our Farmers New World Life Review
1928 marked the beginning of a very well-known insurance group – Farmers.
During this time, the company was referred to as Farmers Automobile Insurance Exchange. As the name suggests, this is because Farmers started off insuring rural farmers’ vehicles.
Founded by a couple of partners named John Tyler and Thomas Leavey, the company took root in one of the hardest economic times the United States has ever witnessed.
Despite this historical and economical drought, Farmers made its name known by doing something unthinkable – they paid all insurance claims in cash instead of IOUs.
During the Great Depression, most insurance companies weren’t able to keep afloat financially, so they had to find other ways to delay paying out claims.
Farmers continued to grow and expand its options for insurance, including the acquisition of the New World Life Insurance Company of Seattle in the 1950s.
The company was considered a cutting-edge leader in the market since they allowed monthly payments (with no interest) and honored non-smoker discounts, among other trailblazing innovations. They were also the first carrier to provide comprehensive auto insurance.
In today’s times, Farmers is recognized as a leader in catastrophe response and civic engagement efforts while participating in critical sponsorships.
Believing in the importance of giving back to the community, the company supports several outreach programs, such as Farmers’ Volunteer Incentive Program and Matching Education Gifts Program.
Along with being a military-friendly company, Farmers has also established the Farmers Family Fund to provide financial assistance to employees who’ve experienced a catastrophic event in their life.
Financials and Ratings
Farmers, or rather their group of insurance companies nestled into one, is an extremely large company in and of itself.
Insuring everything from auto, home, life, and even pets, Farmers represents more than 10 million individual households in America, more than twice that of in-force insurance policies.
Known for their personalized service and support, Farmers New World Life Insurance Company has a pronounced financial foothold and has been rated “A” or better by A.M. Best, Fitch, and Standard and Poor’s.
Few life insurance companies can say the same, making Farmers one of the better life insurance companies in America. But, they didn’t quite make it to our top 10 list.
Farmers Insurance Group of Companies consists of Farmers Insurance, Foremost Insurance Group, Bristol West Insurance Group, 21st Century Insurance Group, and all of their subsidiaries.
Farmers also extends their sponsorship into the PGA, NASCAR, and the Tournament of Roses, and is involved in many giving alliances.
One of Farmers’ most prominent sponsorships to date includes American professional golfer Rickie Fowler.
Farmers New World Life Insurance Products
In regards to life insurance, Farmers offers the following products:
If you’re not sure what kind of insurance is best for you and your family, then take a few minutes to explore Farmers’ Life Compass tool.
After answering a few simple questions, a policy overview will help guide you toward the best coverage plan for your unique financial situation.
Term Life Products
Generally more affordable than Permanent life insurance, Term life is short-term coverage with level premiums over a set period of time. If the policyholder dies within the relevant term, named beneficiaries will redeem the death benefit payout. There is no cash accumulation feature, though.
With Farmers, there are three available Term life products to choose from:
The Value Term is similar, offering higher amounts of coverage in exchange for more underwriting.
Finally, the Decreasing Term allows you to buy a policy to match a loan, usually a mortgage, and the value (death benefit) decreases in line with your mortgage.
Universal Life Products
Farmers Life Insurance offers Universal coverage, which is a more permanent yet flexible type of life insurance for those who need something a bit longer than Term. You have more choices when it comes to death benefit amounts and payment options.
The EssentialLife Universal Life policy offers just that, with all the typical cash value components, level death benefit, and guarantees of most other Universal products on the market.
Farmers Index Universal Life policy allows clients to protect their assets against any market fluctuations. Clients can set aside part of their premium in indexed S&P 500 or Russell 2000 accounts with cash accumulation in mind.
Whole Life Products
In the Whole life arena, Farmers offers three product choices – the EssentialLife Simple Whole Life, Farmers Graded Benefit Whole Life, and Farmers Premier Whole Life.
Referred to as a form of Permanent life insurance, Whole life insurance features not only consistent premiums, but also guaranteed cash value build up.
The EssentialLife Simple Whole Life allows for simplified issue, meaning less underwriting and faster issue with slightly higher costs.
The Farmers Graded Benefit Whole Life option is for those who can’t qualify medically for the traditional Whole life product. This option has a waiting period on benefit payouts.
Last, the Farmers Premier Whole Life is for those looking for Permanent product guarantees, cash value growth, and a policy you can never outlive.
Accidental Death Coverage
If you want to protect your loved ones in the event of your accidental death, then consider Farmers’ accidental death coverage.
Maybe you travel frequently or you’ve taken on a dangerous profession – no matter the case, approval is quick and there are no exams or health questions. Coverage begins as soon as your first payment is processed.
Benefits range from as low as $37,500 up to $1 million, depending on the circumstances surrounding the accidental death claim.
Final Thoughts on Farmers New World Life
The vast company of Farmers, including their partners and subsidiaries, all have a great brand and noticeable market share.
Policyholders can even take advantage of the Farmers Friendly Review Service, where you meet with your agent free of charge to discuss the relevance of current coverage and any potential discount qualifications.
Farmers continues to reach middle America very well, all while upholding an unwavering commitment to founding ideals. For example, exclusive benefits and rewards come with a Farmers Rewards Visa card, while the Farmers mobile app permits 24/7 account access and management.
The only real downside to Farmers’ insurance products is pricing, as they rarely compare to industry premiums for life insurance. Almost every time, a consumer will be better off with another company, at least for their life insurance purchases.
As with any insurance provider, make sure to shop around and research a variety of options so you can secure the best deal at the best rate.
If Farmers proves to be the best option for you and your loved ones, then go ahead and check out the company that’s been putting customers first for over 100 years.
|Company Name (and Subsidiaries)||Farmers Insurance Group of Companies|
Farmers New World Life Insurance Company
|Company Ratings||A.M. Best (A)|
Moody’s Investors Services (N/A)
Standard & Poor’s (A)
|Headquarters (Address, Phone, Web)||3003 77th Avenue SE|
Mercer Island, WA 98040
|Policy Types Available||Term Life|
Accidental Death Coverage