You have likely heard of Farmers, although their 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 (“We. Are. Farmers!“).
However, you usually see their advertisements for car accidents, homeowner’s blunders, and other types of coverage. But what about life insurance?
This is a review of the Farmers Life Insurance Company, predominantly, and we will be showcasing the company history, their financial solvency and strength (including ratings), and everything you need to know about their life insurance products.
As they continue to build their brand and their large suite of insurance products, you may want to consider them in your insurance portfolio. Here is our Farmers review.
Our Farmers Life Insurance Company Review
1928 marked the beginning of a very well known insurance group, Farmers, who was at the time named Farmers Automobile Insurance Exchange. Founded by a couple of partners named John Tyler and Thomas Leavey, the company began in one of the hardest economic times the United States has ever seen.
Despite this historical drought, Farmers made it’s name by doing something unthinkable. They paid claims in cash. At the time, most insurance companies weren’t able to financial keep afloat and found other ways to delay 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 1950’s. The company was also a leader an innovator, with things like allowing monthly payments, non-smoker discounts, and more.
Farmer’s Financials and Ratings
Farmers, or rather their group of insurance companies nestled into one, is an extremely large company. Insuring everything from auto, home, life and even your pets, Farmers represents more than 10 million individual households in America, with more than twice that of in force insurance policies.
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, although they didn’t quite make our top 10.
Farmers Insurance Group of Companies consists of Farmers Insurance, Foremost Insurance, Bristol West Insurance, 21st Century Insurance, 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.
Farmers Life Insurance Products
In regards to life, Farmers has:
Term Life Products
There are three available term products:
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 you mortgage.
Universal Life Option
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 may offer. 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.
Whole Life Choices
In the whole life arena, Farmers offers their three choices, the EssentialLife Simple Whole Life, Farmers Graded, and Farmers Premiere Whole Life products.
The Simple Whole Life allows for simplified issue, meaning less underwriting, faster issue, but slightly higher costs.
The Graded option is for those who can’t qualify medically for the traditional whole life product, and it has a waiting period on benefit payouts.
Last, the Premiere Whole Life is for those looking for permanent product guarantees, cash value growth, and a policy which you can never out live.
Conclusion On Farmers New World
The vast company of Farmers, their partners and subsidiaries all have a great brand, a noticeable market share, and continue to market to middle America very well.
The only negative on their 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, anyway.
|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|