I think I’ve made my position pretty clear when it comes to where the best values on life insurance can be found and the fact that your local auto and homeowners agency is not that place. I feel the need to expound today.
You see advertisements all the time with the lead “save up to 70% on your life insurance”. That would be great if you knew that you could really find those kind of savings. Seems like one those just a little too good to be true things, doesn’t it? Well, if you have your life insurance through Farm Bureau, based on the last several cases we have written to replace their product, it appears that you are paying over 100% more than you need to.
Their hook is of course that they will offer you a discount on the auto or homeowners. As a consumer I often question why, if they can offer a discount, shouldn’t they just sell the auto and homeowners at better prices to start with. And then they offer you a discount because you have turned around and purchased another grossly overpriced product from them. This can only be construed as a win/win situation if you want Farm Bureau to be both winners.
I know I always look at these kind of numbers skeptically, so be skeptical. These are the results of some very recent Farm Bureau replacements. A Florida executive with health issues had $1,000,000 of 20 year term insurance with Farm Bureau for $12,000+ per year. His rate with West Coast Life is $6085.00. His wife had the same amount with Farm Bureau for just over $3000 per year and is now paying $1005.00 through Western Reserve. Some young friends of mine with two young children had $100,000 of 10 year each through Farm Bureau which was running $54 per month. They now have $250,000 of 20 year term each with Banner for a total of $31 per month.
Bottom line. What is Farm Bureau thinking? I may be wrong, but I think that they think they will make a huge profit if they can find people to buy their overpriced life insurance. Don’t fall for that discount nonsense. If they can afford to discount their auto and homeowners, rest assured that it is for sale somewhere else, straight up, at that discounted price. Seek out an independent agent today.