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Farmers Life Insurance Review 2021

Dec. 3, 2020
Insurance, Life Insurance
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FARMERS LIFE INSURANCE

  • Rated 3.5 stars out of 5 for overall performance in NerdWallet’s analysis.
  • Fewer life insurance complaints to state regulators than expected for a company of its size.
  • Not available in New York.
Shopping for life insurance during the pandemic? Be aware that insurers may have changed their products and policy applications. For the latest information on how to cope with financial stress during this emergency, see NerdWallet’s financial guide to COVID-19.

Farmers New World Life Insurance Company sells term, whole and universal life insurance products under the Farmers brand in every state except New York, including a term life policy that often does not require a medical exam.

With few complaints to state regulators and a plethora of online tools to learn about and manage a policy, Farmers could be a good fit for many life insurance shoppers.

Farmers life insurance

3.5 NerdWallet rating

Farmers life insurance earned 3.5 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account complaint data from the National Association of Insurance Commissioners and financial strength ratings from A.M. Best.

» MORE: The best life insurance companies for 2021

Farmers life insurance policies

Term life insurance

Farmers sells two types of term life insurance policies that can be converted to whole life policies:

Farmers simple term life insurance policies are available for 18- to 65-year-olds for 10, 20 or 30 years. Coverage amounts start at $75,000, and premiums remain level throughout the term. This policy usually doesn’t require a medical exam or lab test, and you could get approved for coverage within 24 hours.

Farmers value term life insurance policies are also available for 10, 20 or 30 years, with premiums that stay the same throughout your chosen term. This policy is open to those between the ages of 18 and 75 but requires a medical exam. Coverage starts at $150,000, with no maximum.

Permanent life insurance

Farmers sells four types of permanent life insurance policies:

Farmers EssentialLife simple whole life insurance policies are available for ages 15 days to 80 years old, with proceeds paid to age 121. Coverage starts at $15,000 and comes with a guaranteed death benefit, and premiums remain level over the life of the policy. Coverage approval is dependent on a medical questionnaire and possibly a medical exam.

Farmers graded benefit whole life insurance policies with no medical exam are marketed to people who have some health conditions but are able to take care of themselves. Coverage of $5,000 to $30,000 is available for ages 18 to 80 years, and proceeds are paid to age 121. Premiums remain level over the life of the policy, and Farmers guarantees a cash value. The policy comes with a graded death benefit that limits the payout amount to 110% of the premiums already paid if the policyholder dies within the first two years, unless the death is a result of an accident.

Farmers EssentialLife universal life insurance offers flexible premiums with coverage starting at $50,000 for people between 15 days and 80 years old. It may also have a cash value that earns interest.

Farmers index universal life insurance targets people who want protection from underperforming markets. Portions of your premiums can be invested in accounts indexed to the S&P 500 or Russell 2000, or in fixed-interest accounts paying 0.1% to 1%.

» MORE: Compare life insurance quotes

Customer complaints for Farmers

Over three years, Farmers life insurance has drawn fewer complaints to state regulators than expected for a company of its size, according to a NerdWallet analysis of data from the National Association of Insurance Commissioners.

More about Farmers life insurance

The Farmers website has clear descriptions of each life insurance product and several resources for shoppers who need guidance, including a Life Compass feature that asks customers a few questions to determine which type of life insurance coverage is right for them. You can log in to manage your policy and make payments.

The Farmers mobile app allows policyholders to pay bills, view policy documents and connect with an agent.

You can get a Farmers life insurance quote online, on the mobile app or by contacting a life insurance agent through the website’s search portal.

Farmers auto and homeowners insurance

Farmers also sells auto and homeowners insurance. For more information, check out our Farmers insurance review.

Other types of insurance from Farmers include:
Renters insuranceBusiness insurance
Motorcycle insuranceRecreational insurance
Umbrella insuranceLandlord and rental property insurance

Farmers life insurance pros and cons

ProsCons
Life insurance policies available for people up to age 80. Not available in New York.
Simple term life typically doesn’t require a medical exam.Minimum term policy amounts may be higher than what some people want.
Fewer complaints to state regulators than other life insurance companies of similar size.

Methodology: Life insurance ratings

NerdWallet’s life insurance ratings are based on weighted averages of complaint index scores from the National Association of Insurance Commissioners for individual life insurance, and financial strength ratings from A.M. Best, which indicate a company’s ability to pay future claims. To calculate each insurer’s rating, we adjusted the NAIC and A.M. Best scores to a curved 5-point scale.

These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews.

Methodology: Insurer complaints

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2016-2018. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

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