Farm Bureau Life Insurance: Accelerated Payment Options Explained

Farm Bureau Life Insurance is a well-established insurer with a strong financial standing and a low volume of customer complaints. The company offers a range of life insurance products, including term, whole, and universal life insurance policies, as well as fixed and variable annuity insurance. While Farm Bureau Life Insurance does not support online applications or claims, it provides several payment options, including ACH transfers, debit cards, and credit cards. The company also offers accelerated underwriting, which simplifies and expedites the process of obtaining life insurance by waiving medical exam requirements. This option is particularly appealing to those who want to avoid blood draws and other exam procedures.

Farm Bureau Life Insurance's financial strength and customer satisfaction

Farm Bureau Life Insurance's Financial Strength

Farm Bureau Life Insurance is a financially robust company with an "Excellent" rating from AM Best, indicating strong financial stability and an excellent ability to meet its insurance obligations. This rating is based on a comprehensive assessment of the company's creditworthiness and ability to pay debts, claims, and other commitments on time. Farm Bureau has consistently earned this rating for over 50 years, demonstrating its long-term financial strength.

In addition to its excellent financial strength rating, Farm Bureau also boasts a very low complaint index from the National Association of Insurance Commissioners (NAIC). The NAIC index compares the number of complaints a company receives relative to its market share, and Farm Bureau's average index of 0.17 over a three-year period indicates that it receives far fewer complaints than expected for a company of its size. This further reinforces the company's strong financial standing and customer satisfaction.

Customer Satisfaction

Customer reviews of Farm Bureau Life Insurance are mixed. While some customers appreciate the convenience of having multiple policies bundled together and the option of automatic payments, others have expressed frustration with the claims process and a lack of empathy and professionalism from customer service representatives.

Positive reviews highlight the company's reasonable prices, good coverage options, and friendly and knowledgeable staff. Some customers also appreciate the personal touch of having a dedicated agent who is readily available to answer questions and provide guidance.

However, negative reviews mention difficulties reaching agents, long wait times, and issues with refunds and claim handling. There are also complaints about the limited customer support options, as Farm Bureau does not offer online applications, claims, or virtual assistance outside of normal business hours.

Overall, Farm Bureau Life Insurance has a strong financial foundation and a relatively low number of complaints for a company of its size. While customer experiences vary, the company's financial strength and commitment to continuous improvement suggest a focus on customer satisfaction.

The benefits of accelerated underwriting

Accelerated underwriting, also known as express underwriting, is a quicker way to be approved for a regularly priced life insurance policy. It is a streamlined and hassle-free application process that saves applicants time and effort. Here are some of the benefits of accelerated underwriting:

Faster and Simpler

Accelerated underwriting speeds up the approval process by eliminating the need for a medical check-up. Instead of a medical exam, insurance companies only ask applicants to fill out a medical questionnaire and use existing data and records to set policy rates. This includes checking medical records, prescription history, motor vehicle records, and financial history. The entire application process can be completed electronically and by phone, providing applicants with a decision within days or even hours, compared to the weeks or months required for traditional underwriting.

Peace of Mind and Financial Protection

Policyholders can obtain coverage faster, providing them with peace of mind and financial protection without unnecessary delays. Accelerated underwriting is especially beneficial for those who need coverage as soon as possible.

Less Intrusive

The need for extensive medical exams and invasive tests is eliminated, making the application process less intrusive and more appealing to potential policyholders.

Competitive Pricing

By using data analytics, insurers can offer more personalized and competitive pricing based on an applicant's risk profile, potentially resulting in lower premiums.

Widely Available

Throughout the life insurance industry, accelerated and simplified underwriting have become common practice. Many insurers now offer accelerated underwriting, and it is available to healthy individuals aged 18 to 60.

Whole life insurance and its cash value

Whole life insurance is a type of permanent insurance that lasts the entire life of the policyholder, with premiums being paid regularly. It is believed that whole life insurance is one of the most popular choices in the life insurance market. The cash value of whole life insurance can still grow with potential tax savings, and the death benefit is guaranteed, as long as the premiums are paid. The premiums in this type of plan are usually fixed.

Whole life insurance has a cash savings component, known as the cash value, which the policy owner can draw on or borrow from. The cash value of a whole life policy typically earns a fixed rate of interest. Withdrawals and outstanding loan balances reduce death benefits.

Whole life insurance policies include a savings portion, called the "cash value", alongside the death benefit. In the savings component, interest may accumulate on a tax-deferred basis. Growing cash value is an essential component of whole life insurance. To build cash value, a policyholder can often remit payments greater than the scheduled premium to purchase extra coverage (known as paid-up additions or PUA). Policy dividends can also be reinvested into the cash value and earn interest. Over time, the dividends and interest earned on the policy's cash value will provide a positive return to investors, growing larger than the total amount of premiums paid into the policy.

The cash value offers a living benefit to the policyholder, meaning the policyholder can access it while the insured is still alive. To access cash reserves, the policyholder requests a withdrawal of funds or a loan. Withdrawals are tax-free up to the value of the total premiums paid. Interest is charged on policy loans, with rates varying per insurer, but the rates are generally lower than with a personal loan or home equity loan. However, withdrawals and unpaid loans also reduce the cash value of the policy. Depending on the policy type and the size of its remaining cash value, a withdrawal could chip away at the death benefit or even wipe it out entirely.

Whole life insurance is different from term life insurance, which is for a specific number of years and does not have a cash savings component. Whole life insurance is also more expensive than term life insurance.

The different life insurance payout options

Life insurance is an essential part of your financial well-being and can provide peace of mind for the future. It is a type of insurance contract where the policyholder agrees to pay premiums to keep their coverage. In return, the insurance company pays out a death benefit to the beneficiaries when the insured person passes away. There are several life insurance payout options available, and it is important to understand these options to choose the right one for your situation. Here is a detailed overview of the different life insurance payout options:

Lump-Sum Payment

The most common life insurance payout option is the lump-sum payment. This option allows the beneficiary to receive the entire death benefit at once. It gives the beneficiary full control over the money, providing the most flexibility in how they choose to use it. However, receiving a large amount of money at once can be overwhelming, and it is the beneficiary's responsibility to manage the funds wisely. Lump-sum payments are generally not considered taxable income, but in rare cases, estate taxes may apply.

Installment Payments

With installment payments, the life insurance company pays the beneficiary a certain amount of money on a regular schedule, such as monthly, quarterly, or yearly. The payments are made over a specified period, providing more flexibility than a lump-sum payment. However, the payments may be lower than with a traditional life income option, and any interest earned on the installments is typically taxable.

Annuities

The annuity option allows the beneficiary to receive guaranteed payments for life. The amount of each payment is based on the beneficiary's age and the value of the death benefit. Annuities can provide peace of mind and are especially appealing to older individuals in retirement. However, the payments may be smaller if the beneficiary is younger, as they need to be distributed over a longer period. There may also be fees and surrender charges associated with this option.

Retained Asset Account

A retained asset account allows the beneficiary to leave the payout with the insurance company in an interest-bearing account. The insurance company typically provides a checkbook to access the funds, and there is no need to worry about deposit insurance limits. However, the interest rate offered by the insurer may be lower than what could be achieved through other investment options, and the interest earned on the account is taxable.

Life Income with Period Certain

This option ensures that payments continue to be made for a specified period, even if the beneficiary dies during that time. The payments will be distributed to the designated beneficiaries for the remaining period. However, the payment amounts will be lower than with a traditional life income option.

Specific Income Payout

The specific income payout option allows the beneficiary to receive the life insurance payout in installments of their choosing. They can set the time period and the amount of each payment, providing flexibility in managing the funds. However, this option still offers less flexibility than a lump-sum payment, and any interest earned is taxable.

Farm Bureau Life Insurance's customer service

Farm Bureau Life Insurance is a well-regarded insurance provider with excellent financial strength and a low complaint index for a company of its size. However, its customer service options are limited to phone support only, with no virtual assistance available outside of normal business hours. Customers cannot apply online or start the claim process online, which can be inconvenient.

The company's customer service phone line for life insurance and annuity customers is 800-247-4170. Representatives are available Monday through Friday, from 8 a.m. to 4:30 p.m. CT. While there is no online contact form or email support, this is standard in the industry. If you're interested in coverage, Farm Bureau will refer you to a local agent who you can contact via phone, email, or in-person visit.

Farm Bureau Life Insurance offers a range of term, whole, and universal life insurance policies, as well as fixed and variable annuity insurance. Their term life insurance policies include Choice Term, Income Guard Term, Return of Premium Term, and Increasing Term. The company also provides optional coverage enhancements, such as term life insurance for children and living benefits for those diagnosed with a qualifying terminal illness.

In addition to its life insurance products, Farm Bureau also offers accelerated underwriting, which is a simpler and faster approach to obtaining life insurance. This process eliminates the need for medical exams and utilizes data from third-party providers to make underwriting decisions.

Frequently asked questions