Before you decide on a life insurance company and policy, it’s best to read up on your options. You’ve probably found your way to this page because you’re considering Farmers New World Life Insurance Company as your carrier of choice. You may have home or auto through Farmers Insurance and believe it’s time to add life insurance.
Farmers Life Insurance Review
You should consider the potential pitfalls of bundling life insurance with your other insurance policies. You may not be getting as sweet of a deal as you believe.
About Farmers Insurance
Farmers Insurance has been in business for over 90 years. Farmers sells insurance in 36 states, including automobile, renters, business, and life insurance.1 This insurer sells life insurance under the brand Farmers New World Life Insurance Company.
Ratings Agencies are independent and objective bodies that thoroughly investigate every aspect of an insurance company. After assessing factors such as financial health, and future outlook, the ratings agency will give the insurance company a “grade.”
One of the most important rating agencies in the United States is AM Best Company. In 2019, AM Best rated Farmers New World Life Insurance as an A, or excellent. This is a solid rating for a life insurance company, and should be reassuring for any policy seeker interested in this company.
Farmers New World Life Insurance Policies
Farmers New World Life Insurance offers two main categories of policies: term versus permanent life insurance.
Level term life insurance is a policy that is purchased to insure you for a set period of time. Usually term policies are for 10, 20, or 30 years. Many times parents of young children will purchase a term life insurance policy so that in the event that they die before their children are adults, there will be supplementary income for their care.
Whole Life insurance is permanent coverage that last for as long as you live. Farmers Life Insurance offers:
- Grade Death Benefit Whole Life
- Simple Whole Life
- Premier Whole Life
Premier Whole Life
Underwritten by Farmers New World Life Insurance Company, Premier Whole Life Insurance offers fixed premiums, guaranteed cash value accumulation and a permanent death benefit.
Universal life insurance that offers more flexibility in terms of payment and adjusting the benefits and coverage.
Farmers New World Life offers two main types of universal life insurance:
- EssentialLife Universal Life
- Index Universal Life
Index Universal Life
Farmer’s Index Universal Life allows you to allocate your funds into 2 fixed accounts and 2 indexed accounts, tracking the returns of the S&P 500 or Russell 2000.
Indexed Universal Life (IUL) provides the opportunity for higher cash value growth than traditional whole life. You are not directly investing in the stock market. Rather, your cash is allocated to indexed funds and you participate in the gains of the funds, without the risk of loss due to a guaranteed floor.
IULs provide both a cap and a floor. The cap represents the maximum amount of interest that can be credited to your account, regardless of how high the market returns may be. Although you are limited in potential gains, this is offset by the guaranteed protection provided by a 0% floor.
You also need to be familiar with the term “participation rate”. Your participation rate is simply the rate the company will give you that determines what percentage of the gains you will participate in. Participation rates vary and can be lower than 100% or higher.
Benefits of Farmers Life Insurance
Multiple Insurance Policies All in One Place
If you already have another type of life insurance through the Farmers Group, then adding on a life insurance policy can make it easy for you to manage all of your finances and insurance policies. By having all your insurance policies/products from one company may simplify your life. You may even get a discount from Farmers Insurance for having more than one policy.
Accessible Almost Everywhere
Farmers Insurance is offered in 36 states, making it easy for policy seekers across the nation. Farmers also has a good reputation when it comes to customer service. Agents are responsible for not only selling you the product, but also being involved in your customer service needs.
Overall Opinion of Farmers Insurance
Farmers New World Life is a great option for life insurance seekers. It has a brand value, and they’ve been in business for more than 90 years—that says a lot. They have a good rating, and their financial health is strong.
That being said, when you lock into a life insurance policy, you are choosing only what one company has to offer. If you have any other kind of insurance policy through Farmers, they may be trying to sell you a life insurance policy—but just because they are right for another type of insurance doesn’t mean they are always going to be your best choice.
Consider an Alternative to Farmers Life Insurance
We suggest to all life insurance seekers that the best policy (pun intended!) is to shop around. You want to get the best life insurance coverage out there, and you’re probably not going to get that if you only hear what one life insurance company has to offer. So use our quote tool to get plenty of options all at once.
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