Farmers Life Insurance Review

Good mix of policies with several simplified issue options, but limited riders

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Farmers

 Farmers

Our Take

Farmers Life Insurance has a good variety of policy options and you can easily get a quote online. However, the company has some notable downsides, including limited customer support options and few riders, plus you have to work with an agent in order to buy coverage.

  • Pros & Cons
  • Key Takeaways
  • Company Overview
Pros & Cons
Pros
  • Life Compass tool helps you find the right policy

  • Variety of coverage options available

  • Online quotes for term and whole life

Cons
  • Can’t purchase most policies online

  • Few riders compared to competitors

  • Limited customer service options

  • No option to pay your premium online

Key Takeaways
  • Farmers offers term life, whole life, universal life, and accidental death insurance, with two simplified issue policies.
  • It’s easy to get a quote online for Farmers’ term life, whole life, and accidental death insurance policies.
  • Farmers has excellent financial strength and fewer than average company complaints.
  • The company only offers a few riders, which is one of the biggest drawbacks.
Company Overview

Farmers Insurance was founded in 1928. Today, the California-based company serves more than 10 million households across the country and has written over 19 million policies. Farmers sells insurance through an extensive network of 48,000 captive and independent agents. To purchase a life insurance policy from Farmers, you’ll need to contact an agent via phone, email, or visit a local office. Farmers sells life insurance in every state except New York through the Farmers New World Life Insurance Company.

  • Year Founded 1928
  • Kinds of Plans Term life, whole life, universal life, accidental death insurance
  • Number of Plans 8
  • Payment Plan Options Monthly, Quarterly, Annually
  • Customer Service Phone: (888) 327-6335, Online form
  • Official Website www.farmers.com

Farmers is not one of our top-rated life insurance companies. You can review our list of the best life insurance companies for what we think are better options.

Pros Explained

  • Life Compass tool helps you find the right policy: Farmers’ Life Compass tool helps you find the right policy for your needs based on your age, income, and dependents.
  • Variety of coverage options available: Farmers offers term life, whole life, universal life, and accidental death insurance, with eight total policies available. 
  • Online quotes for term and whole life: It’s easy to get an instant online quote for Farmers’ term life, whole life, and accidental death insurance policies.

Cons Explained

  • Can’t purchase most policies online: Although you can purchase accidental death insurance online, you won’t be able to purchase any other policies.
  • Few riders compared to competitors: Farmers only offers a handful of riders, and many of its competitors offer more ways to customize your policy. 
  • Limited customer service options: If you want to get in touch with a Farmers agent, you’ll need to call the company during business hours or send an email. The company only offers 24/7 support for claims.
  • No option to pay your premium online: Farmers doesn’t allow policyholders to pay their life insurance premium online. Additionally, you might be required to enroll in automatic payments.

Available Plans

Farmers Insurance offers eight life insurance policies. However, the policies available vary by state. Because Farmers is not a mutual company, none of its policies pay dividends. Here’s a brief overview of the different policies that Farmers sells:

Farmers Simple Term Life Insurance

The Farmers Simple Term policy is available to people between the ages of 18 and 65. It offers coverage between $75,000 and $150,000, over 10, 20, or 30 years. This term life insurance policy has a guaranteed death benefit, level premiums, and is convertible when the term ends. Most applicants don’t need to take a medical exam, and it’s possible to get coverage in as little as one business day.

Farmers Value Term Life Insurance

The Farmers Value Term life insurance policy offers coverage starting at $150,000, with no maximum, over 10, 20, or 30 years. Applicants between the ages of 18 and 75 can qualify for coverage, but a medical exam is required as part of the underwriting process. Farmers’ Value Term policy has a guaranteed death benefit, level premiums, and is convertible when the term ends.

With a convertible term life insurance policy, you can convert your coverage into a permanent life insurance policy at the end of the term without taking another medical exam, even if your health is not as good as it used to be.

Farmers EssentialLife® Simple Whole Life

Farmer’s EssentialLife policy is whole life insurance with coverage between $15,000 and $250,000. Coverage is available for individuals between the ages of 15 days old and 80 years old, with proceeds paid until age 121. This policy has a guaranteed death benefit and level premiums, and applicants aren’t required to take a medical exam, depending on their responses to a few health questions.

Farmers® Graded Benefit Whole Life

Farmers’ Graded Benefit whole life insurance policy is a simplified issue policy that is available to people between the ages of 18 and 80 years old, with proceeds paid until age 121. You can get guaranteed coverage between $5,000 and $30,000, with level premiums and cash value. Applicants aren’t required to take a medical exam. The company uses three health questions to determine eligibility.

Farmers EssentialLife® Universal Life

With a Farmers EssentialLife policy, applicants between the ages of 15 days old and 80 years can get permanent coverage starting at $50,000. Universal life insurance allows you to adjust your premiums and your death benefit at any point. This policy also has a cash value component, which can be used to reduce the frequency or the amount of your premiums.

Farmers Index Universal Life®

This indexed universal life insurance policy from Farmers has flexible premiums, an adjustable death benefit, and cash value that gets invested in an indexed S&P 500 or Russell 2000 fund, and grows based on Stock Market performance. Farmers offers a 0% floor to reduce risk. You also have the option to invest a portion of your premiums in a fixed-interest account. The long-term fixed account has a guaranteed minimum rate of return of 1% and the short-term holding account has a guaranteed minimum rate of return of 0.1%. Coverage limits vary by state.

Accidental Death Insurance

Farmers’ accidental death insurance policy provides additional coverage in the event of an unexpected and accidental death. The policy offers coverage between $50,000 and $200,000, with the potential to get up to $1 million depending on the circumstances. Accidental death insurance is available for people between the ages of 18 and 69. You can purchase coverage online, without any waiting period, and without ever taking a medical exam or answering health questions. 

Available Riders

Farmers offers several riders that can be added to your life insurance policy for more protection. Here are the riders available and what they cover: 

Disability Riders

Farmers offers disability riders which can temporarily pause your policy’s premiums if you become totally disabled and are unable to work. Some disability riders can also provide extra income during this time.

Accelerated Death Benefit Rider

This rider allows you to use some of your policy’s death benefit to cover end-of-life expenses if you get diagnosed with qualifying terminal or chronic illness.

Critical Illness Rider

A critical illness rider allows you to pull money out of your life insurance policy to use for certain expenses if you get diagnosed with a specified critical illness, like cancer or stroke.

Customer Service

Farmers’ customer service extends beyond basic business hours. You can reach a representative via phone Monday through Friday, from 7 a.m. to 11 p.m. CST, and on the weekend from 8 a.m. to 8 p.m. CST. The main customer service number is (888) 327-6335. However, if you need to file a claim, you can reach a representative 24/7 by calling (800) 435-7764. In addition, Farmers has an online form if you would rather send a brief message.

Complaint Index

The NAIC Company Complaint Index scores insurance companies based on real customer feedback about premiums, claim settlement satisfaction, claim delays, agent interactions, and more. The complaint score is a good indication of a provider’s customer support and the overall customer experience.

Farmers Life Insurance has fewer than average complaints as reported in the National Association of Insurance Commissioners (NAIC) Company Complaint Index. Farmers New World Life Insurance Company, the underwriter for Farmers’ life insurance policies, has a complaint score of 0.72, which is below the industry average score of 1. The company has maintained a lower-than-average complaint score since 2018.

Third-Party Ratings

Farmers New World Life Insurance Company has excellent financial strength, with an "A" rating from AM Best. This indicates that Farmers is able to pay life insurance claims in full, and is not in danger of going out of business due to financial hardship. The company was not rated in J.D. Power’s most recent life insurance study.

Cancellation Policy

You can cancel a Farmers life insurance policy at any time by calling an agent. You can choose to terminate your policy immediately, or request a cancellation date in the future. It’s possible that you will have to pay a cancellation fee if you have a permanent life insurance policy, but you’ll receive a check for the policy’s cash value when the coverage ends. Term life insurance policies don’t have cancellation fees, but because they don’t build cash value, you won’t receive any compensation in the end.

Note

Cancelling (also called surrendering) your life insurance policy can be a good option if you no longer need the coverage or if you can no longer afford the premiums. 

Price

Life insurance companies calculate premiums based on individual circumstances and factors like age, overall health, and gender assigned at birth. To give you a better sense of Farmers’ life insurance prices, we received a few sample quotes (which may vary based on location).

For a 40-year-old male who is in good health and doesn’t smoke, a Simple term life insurance policy with $150,000 in coverage over 30 years would cost $652 per year.

For a 60-year-old female who is in good health and doesn’t smoke, a Simple whole life insurance policy with $25,000 in coverage would cost $1,051 per year.

If you identify as nonbinary, it won’t impact your ability to purchase coverage, but you will need to select male or female as your gender on the application. Farmers doesn’t disclose how life insurance rates are determined for nonbinary individuals, so we recommend contacting the company to learn more. 

Competition

One of Farmers’ biggest competitors for life insurance is State Farm. These companies have similar policy offerings, and they both have resources to help you pick the right type of life insurance for your family’s needs. State Farm gets the edge with more policy types and a strong set of online resources. The table below highlights some key differences between Farmers and State Farm.

  Farmers State Farm
Market Share N/A 7th largest in the U.S., 2.87% market share
Number of Plans 8 10
Dividends for 2020  N/A N/A
Wellness Program Discounts/ Quit Smoking Incentives  N/A N/A 
Service Method  Agents Agents 
AM Best Rating  A A++
Price Rank  About average About average 
Complaints Trend  0.72 (below average) 0.19 (below average)
Final Verdict

If you’re in the market for life insurance, Farmers can get it done but isn't one of the best. The company offers a good selection of life insurance policies, but we were unimpressed by the small number of riders available. Farmers has a few valuable online resources, like a policy comparison tool and online quote generator, but if you want to purchase any policy besides accidental death insurance, you’ll need to work with an agent.

Methodology

Our reviews of life insurance companies are based on a quantitative methodology approach that analyzes each insurer on their stability and reliability, customer service, claims experience, diversity of product lines, and cost. We compare the terms of each type of policy offered—including available coverage amounts, optional riders, and premium payment options—with that of other major life insurance companies. Lastly, we look at how the company is rated by third-party organizations to determine its reliability and overall reputation.

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy .
  1. NAIC. "Farmers New World Life Ins Co National Complaint Index Report." Accessed April 13, 2021.

  2. AM Best. "AM Best Affirms Credit Ratings of Farmers New World Life Insurance Company and Farmers Reinsurance Company." Accessed April 13, 2021.