Is Farmers a Good Insurance Company?
At Diversified Insurance Brokers, we evaluate insurers through the lens of product scope, financial strength, and fit for retirement and income strategy. If you’re asking, “Is Farmers a good insurance company?” the answer is generally yes—they are well-established and strong in many insurance lines—but when it comes to guaranteed income annuities and retirement-income optimization, you’ll want to compare key annuity features and income guarantees across several firms.
Compare Farmers vs Other Carriers
Explore fixed, bonus and fixed-indexed annuity options and rate comparisons.
Lifetime Income Calculator
Use this tool to estimate guaranteed lifetime income based on premium, age and start date.
Company Overview & Financial Profile
Farmers Insurance traces its roots to 1928 and today operates in all 50 states through a broad distribution network. Their umbrella includes personal lines (auto, home), life insurance via Farmers New World Life Insurance Company, and financial products offered by Farmers Financial Solutions, LLC which includes annuities. Because they are a diversified insurer, they bring broad scale and infrastructure. If your priority is an all-in-one insurance provider, that’s a plus. But for retirees focused strictly on guaranteed retirement income through annuities, features matter more than size alone.
What Farmers Does Very Well
- Wide product offering: They cover home, auto, business, life insurance and annuity/financial products—helpful if you want consolidation under one provider.
- Established infrastructure & agent network: With tens of thousands of agents and multiple subsidiaries, you’ll likely find local support easily.
- Strong market presence: Operating across all states, Farmers brings scale and regulatory experience, which helps with claims processing, stability and product access.
Where You Should Compare Closely
If your aim is locking in guaranteed retirement income via an annuity, consider these factors:
- Income & withdrawal factors: How strong are their annuity income riders when compared with industry-best? See what is a GLWB?
- Surrender and liquidity flexibility: What free withdrawal options, market value adjustments or early access do they provide? Compare with annuity free withdrawal rules
- Product availability and specialization: Because Farmers is broad, their annuity product line may not specialize in maximizing payout for income-first clients. Compare with more focused carriers using our article on fixed annuities vs fixed indexed annuities.
- Rollover compatibility: If you’re transferring a 401 (k), IRA or other retirement asset, ensure the contract aligns with your tax timing and income strategy. See how to transfer a 401(k) to an annuity.
How Farmers Fits Into a Retirement Strategy
Most retirement income strategies follow a layered structure: the first layer secures essential living expenses via guaranteed income, the second layer addresses discretionary spending, and the third layer covers legacy or growth. Farmers can serve layer 1 if you select an appropriate annuity, but because their focus is broader than pure income-optimization, we recommend also testing niche carriers designed for income. Their broad general insurance platform means you might trade off highest payout in favor of wide coverage.
For example: a 65-year-old rollover of $300,000 asks for guaranteed lifetime income. With Farmers you may secure a solid payout, yet when you compare the same premium with a specialist income-annuity company, you might achieve a higher income factor, or more flexible rider terms. Our role is to ensure you run the numbers using the calculator above and compare side-by-side, so you aren’t settling for “good enough.”
Pros & Cons
Pros
- Large and established brand, strong infrastructure and global backing.
- Wide product mix allows bundling of insurance and retirement products.
- Nationwide access and big agent network for personalized guidance.
Potential Trade-Offs
- When seeking maximum guaranteed income from an annuity, other carriers may offer stronger income factors or more advanced income riders.
- Because their product scope is broad, specialized features like enhanced income multipliers or niche retirement-income strategies may be less emphasized.
- Product availability, states and terms may vary—what you get in one state may differ from another’s version.
Is Farmers the Right Fit for You?
If you are looking for a trusted name, comprehensive coverage and want to consolidate insurance and retirement income solutions under one roof, Farmers is an excellent choice. If your goal is strictly to maximize guaranteed lifetime income and you’re comfortable working with a specialist annuity provider, we recommend adding comparison carriers to your evaluation. We’ll help you produce quote scenarios and ensure you’re not leaving money on the table.
Ready to compare guaranteed income in your state? We’ll pull quotes from Farmers as well as top-competitor carriers and show you what your income could be.
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Licensed in all 50 states • Fiduciary, family-owned since 1980
FAQs: Is Farmers a Good Insurance Company?
Is Farmers financially strong?
Yes. Farmers operates across all states, with a broad business base and the backing of a parent group that gives it scale and stability.
Does Farmers offer annuities?
Yes. Through its subsidiary Farmers New World Life Insurance Company and Farmers Financial Solutions, it offers life and annuity products—but the depth of advanced income-only annuity features may not match niche specialists.
Are Farmers’ annuity income payouts competitive?
They are solid, but when maximizing guaranteed lifetime income is your goal, other carriers often offer higher payout factors or more flexible rider options—comparison is key.
Can I roll over retirement assets into a Farmers annuity?
Potentially yes. Use our rollover guidance (such as how to transfer a 401(k) to an annuity) and confirm with a licensed advisor and your state’s contract availability.
What should I ask when evaluating a Farmers annuity?
Ask about the income rider multiplier, your free access provisions, surrender periods, and how this compares with other top annuity carriers.
