Allstate Life Insurance: Is It Worth The Hype?

Allstate Life Insurance Company offers a range of life insurance policies, including term, whole, universal, and variable. The company was founded in 1931 and is the country's largest insurer of personal lines, with more than 113 million policies across all 50 states. Allstate offers flexible premiums, various coverage levels, and additional riders for comprehensive financial protection. Their term life insurance policy is available in short-term and long-term coverage lengths, ranging from 10 to 40 years, with prices starting at $10 a month. While Allstate's term policies do not build cash value, their whole, universal, and variable universal life plans do. The company has an A+ financial strength rating from AM Best, indicating strong financial stability.

Pros and cons of Allstate life insurance

Allstate Life Insurance offers term, whole, and universal policies with flexible premiums, various coverage levels, and additional riders for comprehensive financial protection. Here are some pros and cons to help you evaluate their offerings:

Pros:

• Flexible term lengths: Allstate offers term life insurance policies with flexible coverage periods, ranging from 10 to 40 years, allowing customers to choose a duration that aligns with their needs.
• Potential discounts: Bundling life insurance with other Allstate policies, such as home or auto insurance, may qualify customers for discounts, helping to reduce overall insurance costs.
• Convenience and variety: Allstate provides a one-stop shop for various insurance needs, including life, home, auto, and business insurance. This can be convenient for those who prefer managing their policies with a single company. Additionally, Allstate offers a range of life insurance options, including term, whole, universal, and variable universal life insurance, allowing customers to choose the type of policy that best suits their circumstances.
• Strong financial ratings: Allstate has an A+ financial strength rating from AM Best, indicating its ability to meet financial obligations and pay out claims. Similarly, the companies that partner with Allstate for life insurance, such as John Hancock and Protective Life, also hold A+ financial ratings, providing confidence in their financial stability.
• Online resources: Allstate provides a user-friendly website with informative content about different types of life insurance and a life insurance calculator to help estimate coverage needs.

Cons:

• Limited online application: While Allstate offers the convenience of obtaining a quote online, the process of applying for a policy may require speaking with an insurance agent, which could be seen as an additional step or inconvenience for some.
• Personal information required for quotes: To obtain a quote from Allstate, individuals must provide personal information, which may be seen as a privacy concern for some.
• Policies not available in all states: Allstate's life insurance policies are not available in every state, which may limit options for individuals in certain locations.
• Third-party coverage: It's important to note that Allstate does not underwrite its own life insurance policies. Instead, the coverage is provided by partner companies, such as John Hancock, Lincoln Financial, and Protective Life. While these companies are financially strong, some customers may prefer direct coverage from Allstate itself.

Allstate's financial strength

• A.M. Best Rating: A+
• S&P Global Ratings (formerly Standard & Poors): AA- (fourth highest of 22 classes)
• Moody's Investors Service: Aa3 (fourth highest of 21 company ratings)

Allstate Life Insurance's financial strength ratings are as follows:

• A.M. Best Rating: A+
• S&P Global Ratings: A+ (fifth highest of 22 classes)
• Moody's Investors Service: A1 (fifth highest of 21 company ratings)

Allstate Assurance Company's financial strength ratings are as follows:

• A.M. Best Rating: A+
• S&P Global Ratings: N/A
• Moody's Investors Service: A2

Allstate's customer reviews

Allstate Life Insurance has received mixed reviews from customers. On the one hand, some customers have praised the company for its knowledge and patient handling of their accounts. One customer, Linda J., wrote that Allstate had always handled her account with knowledge and patience, and that they had answered her questions anytime she called. Another customer, Beverly, shared a similar positive experience, stating that she had received her expected check quickly after submitting a claim for a critical illness. She also noted that the customer service representatives she spoke with were polite and knowledgeable.

However, there have also been some negative reviews from customers who have had issues with their policies or claims. For example, one customer, Sue, shared that she had an Allstate hospital policy through her ex-employer, but when she left her job, it took three months to receive an updated invoice, and her rates had increased by more than three times the original amount. Another customer, David, shared a story about his 96-year-old father, who had an Allstate policy for 40 years, but when he passed away during the 30-day grace period after the annual premium was due, Allstate did not reply to simple claim requests from his trust representative.

Overall, while some customers have had positive experiences with Allstate Life Insurance, there are also those who have encountered issues with their policies or claims. It is always important to consider multiple factors when choosing a life insurance provider, including the company's financial strength, the types of policies and riders offered, and the ease of the application and claims process.

Allstate's life insurance policies

Allstate Life Insurance Company offers a range of life insurance policies, including term, whole, universal, and variable universal life insurance. The company was founded in 1931 and is headquartered in Northbrook, Illinois. While Allstate no longer sells its own life insurance policies, it still offers life insurance quotes from partner companies, including John Hancock, Lincoln Financial, and Protective Life.

Term life insurance policies from Allstate are available in short-term and long-term coverage lengths, ranging from a minimum of 10 years to a maximum of 40 years. Prices for these policies start at $10 a month, and coverage levels range from $100,000 to $50 million. Term life insurance is typically the least expensive coverage option as it only lasts for a specific period. Allstate's term policies do not build cash value, but they offer flexible premiums and various coverage levels.

Whole life insurance is a type of permanent life insurance that offers coverage for the policyholder's entire life as long as premiums are paid. Allstate's whole life insurance policy is available for applicants between the ages of 0 and 80 and can be purchased through a life insurance agent. The policy includes a guaranteed level premium, a tax-free death benefit, cash value accumulation, and dividend payments. Additionally, whole life plans can build cash value over time, and dividends can be applied to future premiums, added to cash value, or used to buy additional coverage.

Universal life insurance and variable universal life insurance are also available from Allstate. These policies are permanent and offer flexible premiums, a tax-free death benefit, and tax-advantaged cash value accumulation. The main difference between the two is how they accrue value. Universal life policies allow policyholders to link the cash value to the performance of stock market index funds, choose a guaranteed annual return option, or a combination of both. On the other hand, variable universal life policies provide policyholders with a variety of sub-accounts to invest their cash value, offering higher growth potential but also increased risk.

When considering Allstate life insurance, it is important to keep in mind that the company requires potential applicants to input personal information to obtain a quote and be directed to their partner providers. Additionally, while online resources are available, speaking with an agent is necessary to finalise the purchase of a policy.

Buying life insurance from Allstate

Allstate Life Insurance Company, headquartered in Northbrook, Illinois, was founded in 1931 and is the country's largest insurer of personal lines, with more than 113 million policies across all 50 states. While Allstate no longer sells its own life insurance policies, you can still get life insurance quotes through Allstate for policies underwritten by partner companies such as John Hancock, Lincoln Financial, and Protective Life.

Allstate offers term, whole, and universal life insurance policies with flexible premiums, various coverage levels, and additional riders for comprehensive financial protection. Their term life insurance policy is available in short-term and long-term coverage lengths, ranging from a minimum of 10 to a maximum of 40 years, and prices start at $10 a month. Their whole life insurance policy is available for applicants between the ages of 0 and 80 and is a type of permanent life insurance.

Allstate's universal life coverage starts at $50,000, while the variable universal life policy starts at $100,000. Both policy types are available from ages 0 to 80 and are permanent, meaning they last your entire life as long as you make premium payments. Allstate also offers a range of riders, or add-ons, to their life insurance policies, such as an accidental death benefit, a disability waiver of premium, and a chronic illness accelerated benefit.

To buy life insurance from Allstate, you can call the company directly or search online to find an Allstate agent near you. Your agent will ask about your age, health, and requested coverage, and may require you to release medical records or take a medical exam to establish your current health. They will then guide you through the products available in your state and help you choose the best coverage options. Ask your agent about any discounts you may be eligible for, such as a bundling discount if you have other policies with Allstate.

Allstate's life insurance rates depend on various factors, including age, gender, location, health, tobacco use, type of policy, and desired coverage options. Term life insurance is typically the least expensive option, while whole, universal, and variable universal policies usually cost more since they can build cash value over time. Additionally, the more coverage you purchase and the longer the term, the higher your premiums will be. However, if you have other insurance plans with Allstate, you may qualify for a multi-policy discount to reduce costs.

Frequently asked questions