Allstate Life Insurance: A Smart Choice?

Allstate is one of the largest insurance providers in the US, offering a range of insurance products, including life insurance. While Allstate no longer underwrites individual life insurance policies, it does offer life insurance through partner providers, including Protective, John Hancock, and Lincoln Financial. Allstate provides term, whole, universal, and variable life insurance policies, with coverage starting at $100,000 and flexible premiums, various coverage levels, and additional riders for comprehensive financial protection. In this article, we will explore the different life insurance options available from Allstate, their features, and how they compare to other providers in the market. We will also discuss the factors that influence the cost of life insurance and the steps involved in purchasing a policy from Allstate.

Allstate's financial strength and ability to meet claim obligations

Allstate has an A+ financial strength rating from AM Best, indicating that it is well-positioned to meet its claim obligations. However, Allstate no longer underwrites individual life insurance policies. Instead, it offers life insurance through partner companies, including Protective, John Hancock, and Lincoln Financial. These partner companies also have A+ (Superior) financial strength ratings from AM Best, suggesting that they have the financial stability to pay out claims and meet their contractual insurance obligations.

The A+ rating is the highest rating that can be assigned by AM Best, indicating that Allstate and its partner providers are among the strongest performers in the industry in terms of financial strength. This rating provides peace of mind that Allstate and its partners are well-equipped to meet their financial commitments and provide reliable insurance coverage to their customers.

In addition to strong financial ratings, Allstate also offers a range of flexible insurance options. They provide term life insurance policies with high coverage limits, ranging from $100,000 to $50,000,000, and terms of up to 40 years, which is longer than what many other providers offer. They also offer permanent life insurance policies, including whole life, universal life, and variable universal life insurance. These policies provide additional benefits, such as the ability to build cash value over time, which can be borrowed against or used to cover emergency expenses.

The combination of high financial strength ratings and flexible insurance options positions Allstate and its partners favorably in terms of their ability to meet claim obligations. The A+ rating from AM Best indicates a superior ability to fulfil financial commitments, and the range of insurance products ensures that customers can find policies that suit their specific needs.

Pros and cons of Allstate life insurance

Allstate is one of the largest insurers in the US, offering a wide range of insurance products, including life insurance. Here are some pros and cons of Allstate life insurance:

Pros

• Flexible policy options: Allstate offers a range of life insurance policies, including term, whole, universal, and variable universal life insurance. This allows customers to choose the type of policy that best suits their needs and preferences.
• High coverage limits: Allstate's term life insurance policies offer coverage ranging from $100,000 to $50,000,000, providing customers with high coverage limits to meet their financial needs.
• No medical exam required: Many of Allstate's term life insurance policies do not require a medical exam or blood test, making it convenient for individuals who may have health conditions or prefer not to undergo an exam.
• Competitive rates: Allstate offers competitive pricing for its life insurance policies, with some policies starting at $10 per month.
• Online quotes and resources: Allstate provides online term quotes, allowing customers to get an estimate for the cost of term insurance conveniently. They also offer online tools, such as a coverage calculator and policy suggestion tool, to help customers determine the right type and amount of coverage for their situation.
• Flexible premiums: Allstate's universal life insurance policies offer flexible premiums, allowing customers to increase or decrease their premium payments within certain limits.
• Riders for comprehensive coverage: Allstate offers various riders, or add-ons, that can enhance the coverage of their life insurance policies. These include an accidental death benefit, chronic illness accelerated benefit, disability waiver of premium, and more.

Cons

• Limited online application process: While Allstate provides online term quotes, customers must speak with an insurance agent to complete the application process for most policies. This may be inconvenient for those who prefer a fully online process.
• Personal information required for quotes: To obtain a quote for Allstate life insurance, individuals must provide personal information, such as their full name and mailing address. This is more invasive than some other companies' quote processes.
• Not available in all states: Allstate life insurance is not available in all US states, so individuals in certain locations may not have access to their policies.
• No final expense insurance: Allstate does not offer final expense insurance, which is designed to cover burial expenses. This may be a disadvantage for seniors or individuals specifically seeking this type of coverage.

Allstate's term life insurance options

Allstate no longer underwrites individual life insurance policies but offers term life insurance options through its partner providers. These include Protective, John Hancock, and Lincoln Financial.

Term Life Insurance Options

Allstate offers term life insurance policies with flexible term lengths of up to 40 years, which is higher than the typical maximum of 30 years offered by many providers. The company provides affordable rates for term life insurance through its partners.

TrueFit Term Life Insurance Policy

The Allstate TrueFit Term Life Insurance policy allows you to layer your coverages using a single policy. This means you can match your coverage needs over different time spans without having to purchase multiple term policies of varying lengths and amounts. TrueFit policies can be set for any specific timeframe between 10 and 30 years.

Basic Term Life Policy

Allstate also offers a Basic Term Life policy for a fixed term of 15 years with coverage levels of $50,000, $100,000, or $150,000. This policy does not require a medical exam but does necessitate the completion of a health questionnaire.

Pros and Cons

Allstate's whole life insurance options

Allstate offers a range of life insurance policies, including whole life insurance. While Allstate no longer underwrites individual life insurance policies, it does offer life insurance through well-known insurers, including Protective, John Hancock, and Lincoln Financial.

Whole life insurance is a type of permanent life insurance that provides coverage for the policyholder's entire life as long as premiums are paid. It is significantly more expensive than term life insurance and may be more expensive than a universal life policy in the early years. However, it guarantees the death benefit for life. Whole life insurance also has a cash value component that term policies do not have, which can be borrowed against in most cases.

Allstate offers a policy option called the Whole Life Advantage, which allows policyholders to return excess credits to the policy, causing it to build cash value faster. The company also offers Universal Life (UL) policies, which are similar to whole life policies in that they can build cash value over time, but the terms and premium payments can be adjusted as needed.

The Variable Universal Life policies offered by Allstate allow policyholders to invest the cash value directly in the stock market through sub-accounts, providing the potential for higher returns but also carrying more financial risk.

The cost of Allstate's whole life insurance policies depends on various factors, including age, gender, health, and coverage amount. The company's website and agents can provide more specific information on pricing.

Allstate's universal life insurance options

Allstate no longer underwrites individual life insurance policies. However, it does offer universal life insurance options through its partner providers, Protective, John Hancock, and Lincoln Financial.

Universal life insurance is a type of permanent policy that builds cash value over time. This cash value can be borrowed against or withdrawn. Universal life insurance policies also offer the flexibility to increase or decrease your premium, within limits, and adjust your coverage.

Allstate's Universal Life (UL) policies are similar to whole life policies in that they can build cash value over time, but the terms and premium payments can be adjusted as needed. The Variable Universal Life policies allow policyholders to invest the cash value in the stock market, which can provide higher returns but also carries more financial risk.

An Allstate Indexed Universal Life (IUL) insurance policy is similar to a UL policy, except that the cash value grows based on a stock market index, such as the S&P 500. The cash value is protected from negative index returns, but gains are capped.

Allstate's Variable Universal Life Insurance is a UL policy that allows direct investment of the cash value component in the stock market through sub-accounts, similar to mutual funds. Unlike an IUL policy, there are no caps on gains or losses with this option.

Frequently asked questions