Farmers Term Life Insurance Review
Farmers Insurance has become a household name. It seems that every time we turn on the television we are being barraged with the company’s funny commercials and catchy jingle “We are Farmers!” Farmers Insurance is considered a well-respected insurance company with a history spanning almost 100 years. It has an excellent reputation for providing reasonable rates on home, auto, business and renters insurance. But when it comes to term life insurance, Farmers rates can be substantially higher than its competitors. In this post, we will take a look at how Farmers Value Term Life Insurance rates stack up against the level premium term rates of another highly rated company in the industry.
Farmers Value Term Life Insurance Features – Farmers Value Term Life Insurance is a level premium product that offers 10, 20 and 30 year coverage options. It is available to applicants ages 18 to 65 with coverage starting at $150,000. The Value Term Life product is convertible to other permanent coverage products offered by Farmers. Farmers Insurance is A rated by A.M. Best, an independent credit rating agency, so policyholders should feel secure that Farmers has the financial strength to pay its obligations such as death benefits.
How Do Farmers Term Life Insurance Rates Compare – We decided to compared rates between Farmers Value Life Insurance and Protective Life, another A rated life insurance company. We compared monthly rates for male and female applicants aged 35 and 40 who qualified for the best health ratings available from each company. Rates are as of 3/4/2015.
Male Applicants Age 35
| Coverage Duration | Coverage Amount | Farmers Rate | Protective Rate |
|---|---|---|---|
| 20 Years | $500,000 | $46.43 | $22.35 |
| 20 Years | $1,000,000 | $76.85 | $38.00 |
| 30 Years | $500,000 | $74.76 | $39.25 |
| 30 Years | $1,000,000 | $130.18 | $70.00 |
Male Applicants Age 40
| Coverage Duration | Coverage Amount | Farmers Rate | Protective Rate |
|---|---|---|---|
| 20 Years | $500,000 | $76.43 | $29.95 |
| 20 Years | $1,000,000 | $144.34 | $53.80 |
| 30 Years | $500,000 | $108.51 | $53.95 |
| 30 Years | $1,000,000 | $197.68 | $103.30 |
Female Applicants Age 35
| Coverage Duration | Coverage Amount | Farmers Rate | Protective Rate |
|---|---|---|---|
| 20 Years | $500,000 | $40.18 | $19.40 |
| 20 Years | $1,000,000 | $66.01 | $32.60 |
| 30 Years | $500,000 | $58.93 | $33.35 |
| 30 Years | $1,000,000 | $105.18 | $59.10 |
Female Applicants Age 40
| Duration of Coverage | Amount of Coverage | Farmers Rate | Protective Rate |
|---|---|---|---|
| 20 Years | $500,000 | $68.10 | $26.15 |
| 20 Years | $1,000,000 | $128.51 | $45.50 |
| 30 Years | $500,000 | $96.01 | $44.90 |
| 30 Years | $1,000,000 | $171.01 | $81.70 |
As you can see, Farmers rates are much higher than the rates from Protective Life. In many cases, the rate difference between Farmers and Protective exceeds 100%. In fact, Farmers rates are higher than almost all of the other companies that we looked at for the same type of coverage. When you add up that difference over the course of a 20 or 30 year period, it is clear that simply shopping around for the best rate could save you thousands over the course of your policy duration.
Working With a Farmers Agent – There are many Farmers agents out there that are knowledgeable and good at what they do, but you should know that Farmers agents are captive. What does this mean exactly? It simply means that Farmers agents only have access to Farmers products. An independent agent, on the other hand, can offer products from multiple insurers (read more about the difference between using a captive agent versus an independent agent here). This is an important point because working with a Farmers agent limits your ability to shop for the best coverage rates in the industry. This becomes even more important when it comes to shopping for life insurance since there are so many underwriting variables that can affect rates. That being said, a Farmers agent does offer the convenience of having all of your insurance coverage such as home, auto and life insurance with one company.
Value Term Life Insurance Duration Limitations – As mentioned previously, the Value Term product comes in 10, 20 and 30 year duration periods. That is a bit more restrictive than many of other companies out there that also provide 15 and 25 year policy options in addition to the standard 10, 20 and 30 year duration options. One company in particular, American General, allows you to further customize your term policy by letting you choose an exact period of coverage years between 15 and 30 with its Select-a-Term product.
Conclusion – This post was in no way meant to say anything negative about Farmers Insurance as a company. The company is well-respected by many for its insurance offerings and has an excellent track record of giving back to the community. This post was meant to show consumers that Farmers Value Term Life Insurance is priced much higher than many other companies out there. It might be tempting to keep all of your coverage with one agent or company, but it is important to know exactly how much that convenience will cost you. If you need life insurance and want to compare rates, get a free quote on our site today or give us a call at (888) 687-9444.
About Us
Archstone Insurance Services, LLC is an independent agency that shops over 40 of the top life insurance carriers to provide huge savings on life insurance coverage for our clients. We are happy to answer any questions you might have about any of the insurance products we offer, your planning needs or your existing coverage. Feel free to call us directly at (888) 687-9444 or email us at info@archstoneagency.com.
