There are many different providers to choose from regarding life insurance. Allstate is one of the top providers in the industry, but is it the right choice for you? Term, whole, universal, and variable universal life policies are available through the insurance company. It also provides a variety of riders to customize your coverage. In this guide, we will look at the pros and cons of Allstate life insurance so that you can make an informed decision.
- Allstate Sell Life Insurance Division
- Allstate Insurance Pros and Cons
- Allstate Life Insurance Plans
- Customer Service
- Complaints
- Financial Strength
- The Cost of Allstate Life Insurance
- About Allstate
- How to Contact Allstate Life Insurance
- Final Thoughts
- Compare Allstate Life Insurance Quotes
- Before Buying Life Insurance
- Need Help Getting Life Insurance Coverage?
- Related Reviews
Allstate Sell Life Insurance Division
The sale of Allstate life insurance occurred in 2021. The company sold its life insurance company and subsidiaries to Blackstone Insurance Solutions. However, Allstate agents still offer policies from other providers, such as Protective Life, Lincoln Financial, and John Hancock. In addition, Allstate still sells home insurance, renters insurance, and auto insurance.
Allstate Insurance Pros and Cons
- Allstate Insurance is one of the biggest and best insurance companies in the United States.
- Their current financial ratings are A+ with A.M. Best.
- They offer term, whole, and universal life insurance policies.
- You can save money on your Allstate life insurance premiums by bundling them with different types of insurance, like auto or home insurance policies from Allstate.
- Allstate offers multiple tools and resources to help you learn about life insurance. Tools include educational guides and calculators.
- Many life insurance companies offer guaranteed issue policies, meaning you cannot be denied coverage because of your health history. However, Allstate does not provide any form of guaranteed issue policy.
- You can’t get quotes online for whole or universal life policies. Instead, you must contact an Allstate agent if you want information about those policies.
- Allstate has limited coverage amounts. This limitation means that you might not be fully protected if something happens. For example, the most coverage you can get from a term life policy is $500,000. Other companies offer more protection, up to $1 million or more.
- Allstate Insurance only offers Allstate life insurance products.
- Options are minimal.
- The cost can be expensive compared to other insurance companies.
- You need to get a permanent insurance quote from a life insurance agent.
- You can only choose 10, 20, or 30 years for term insurance.
- Coverage maximum amounts are limited.
- They do not offer a life policy with no medical exam option.
- $75,000 is the minimum coverage amount.
- Consumers can’t apply for life insurance online.
Allstate Life Insurance Plans
Multiple life insurance policies are available through Allstate, including term life protection and permanent life insurance. Policy applicants will need to go through a medical examination in most situations. You’ll get a customized health evaluation after the test.
Four different life insurance options are available through Allstate.
Allstate Term Life Insurance
Term life insurance policies are less expensive than other life insurance types because they only last for a certain amount of time. It covers you for a set period, usually 10 to 40 years. Term life insurance is meant to help your loved ones financially if you die while still working.
During the plan term, your family will receive a death benefit if you die. However, if you die after the policy expires, your family will not receive anything.
Life insurance costs $24.64 per month for a term of 20 years and $250,000 in coverage.
You can get quotes for Allstate’s term life policies online.
Allstate Whole Life Insurance
Whole life insurance policies provide you with coverage for your entire lifetime. The cost is fixed, meaning it will not change over time. In addition, your policy has a savings component that potentially allows the cash value to grow over time. For whole life, Allstate offers life insurance through the brokerage firm Crump before the sale to Blackstone.
Allstate life insurance offers whole life plans that start at $136.68 per month for $100,000 of coverage.
Allstate Universal Life Insurance
Allstate’s universal life insurance policies give you long-term protection. You can also increase or decrease the death benefit if your needs change. In addition, some Allstate life insurance policies can be linked to a stock market index, which could help you grow your cash value over time. You can get coverage for as little as $79.69 per month.
Allstate Variable Universal Life Insurance
Allstate’s variable universal life insurance policies provide permanent coverage. With a variable universal life plan, you can save money by investing it in different subaccounts similar to mutual funds, fixed accounts, or asset allocation programs. These options have the potential to grow more quickly, but there is also a higher level of risk associated with them.
To learn about the coverage limits available to you in your state, you have to contact an Allstate life insurance agent.
Available Riders
Almost all insurance companies, including Allstate, let you add riders to your life insurance plan. Riders are extras that you can add to your policy and usually have an additional cost. However, they can be used to customize your policy and add different types of coverage.
With Allstate’s riders, you can access a portion of your benefits early if you are diagnosed with a qualifying condition. There are three main riders: the Critical Illness Rider, the Accident Rider, and the Disability Rider.
Accelerated Care Rider
The accelerated care rider can provide an early payment of your life insurance policy’s death benefit. This rider lets you get up to 100% of the plan’s face amount if you are certified as chronically ill by a licensed healthcare professional. To qualify, your cognitive impairment must be permanent, or you must be unable to do at least two activities of daily living (ADLs) which are:
- Bathing
- Continence
- Dressing and grooming
- Eating
- Toileting
- Transferring
Accelerated Death Benefit/Chronic Illness Rider
If you add the chronic illness rider to your Allstate life insurance policy, you may be eligible for up to 80% of the death benefit, up to a maximum of $1 million, if you become chronically ill. In addition, you can use up to 25% of the maximum lifetime benefit or $250,000 each year until the full benefit has been used.
Accelerated Death Benefit/Terminal Illness Rider
If you have a terminal illness and have added the terminal illness rider to your policy, you can get up to 80% of the death benefit money early with a maximum of $250,000. You can use the money for care or other expenses.
Customer Service
There are two ways to file a claim with the Allstate life insurance company. You can file online or by calling 800-366-3495. With either method, you will be able to track the progress of your claim.
If you need more help, Allstate’s customer service is available 24/7. You can reach customer service by calling 800-366-1607. In addition, you can search for a local Allstate agent and meet with them during normal business hours if you prefer in-person support.
Complaints
The National Association of Insurance Commissioners (NAIC) collects consumer complaints about insurance companies. It then calculates how many complaints each company received relative to its market share in a certain category. This rating is called the company’s “complaint ratio.”
A company’s complaint ratio measures how many complaints the company received compared to the average number of complaints about companies of that size. If a company’s complaint ratio is above 1.0, it means that it received more complaints than is typical.
Allstate’s life insurance segment had a complaint ratio of 0.05 in 2020.
Financial Strength
AM Best is a global credit rating agency specializing in the insurance industry. The company releases Financial Strength Ratings (FSRs). These ratings give an opinion on companies’ financial performance and stability. A strong FSR indicates that the company is financially sound and able to meet its policy obligations.
In 2020, Allstate life insurance company was affirmed by AM Best as having an “A+” rating. This affirmation recognizes the company’s strong balance sheet and good operating performance.
Allstate life insurance was not included in the J.D. Power 2020 U.S. Life Insurance Study. Instead, the study looked at 23 top life insurance companies and ranked them based on product offerings and customer service.
Most life insurance companies offer a free look period of 10 days which means you can look at the policy, and if you don’t like it, you can cancel it and get a full refund.
After the free look period is over, the cancellation policies for your insurance policy may vary depending on your coverage. Make sure to talk to your Allstate life insurance agency before signing the contract to understand the policy’s terms and conditions.
The Cost of Allstate Life Insurance
Allstate’s prices for insurance policies are about average. However, if you bundle your life insurance with auto or homeowners insurance, you can save money.
You can’t get quotes for whole or universal life policies online, but on Allstate’s website, you can get quotes for term life insurance.
Allstate does provide rates for a 37-year-old male who is in excellent health.
Allstate
| Term Life | Whole Life | Universal Life | |
|---|---|---|---|
| Coverage Amount | $250,000 | $250,000 | $250,000 |
| Term Length | 20 Years | Permanent | Permanent |
| Monthly Premium | $24.64 | $144.76 | $310.41 |
The Competition
| Term Life | Whole Life | Universal Life | |
|---|---|---|---|
| Coverage Amount | $250,000 | $250,000 | $250,000 |
| Term Length | 20 Years | Permanent | Permanent |
| Monthly Premium | $16.42 | $206.00 | $114.00 |
About Allstate
Allstate added life insurance to its list of products in 1957. The company adopted its famous “Good Hands” slogan and logo a few years earlier. Even though Allstate is one of the largest carriers of property and casualty insurance, Allstate’s life insurance sales are much more modest.
How to Contact Allstate Life Insurance
- WEBSITE: https://www.allstate.com/life-insurance
- CUSTOMER SERVICE PHONE NUMBER: 800-255-7828
- CLAIM PHONE NUMBER: 800-366-3495
Final Thoughts
Allstate no longer sells life insurance and has sold its life insurance division to Blackstone. Regardless of the sale, if you’re looking for a life insurance policy with guaranteed issues, or if you want to be able to get quotes online for a whole or universal life policy, Allstate’s life insurance products may not be the best option for you. However, we offer multiple life insurance options. First, check out our educational tools to learn more about what they offer. Then, request a quote today and see how much money you could save on your life insurance premiums.
Compare Allstate Life Insurance Quotes
Use our calculator to compare Allstate life insurance rates with life insurance quotes from other insurance companies.
Before Buying Life Insurance
Before comparing companies, decide the type of policy you want. Calculate how much coverage you’ll require and how long your coverage should last. Ensure that the insurers you’re looking at offer the coverage you need. When comparing competitive rates, ensure you’re getting quotes for the same amount of coverage. Also, double-check that the policy’s medical criteria are appropriate for you.
To purchase life insurance, compare quotes from multiple companies. The research is just like when you are shopping for car insurance. You want to find the policy with the cheapest rates. That’s because the insurance is mainly for death benefit planning. Make sure to purchase life insurance from a company with an A.M. Best rating of “A-” or better.
You can get a significantly cheaper rate for life insurance for final expenses or whatever else if you shop around. In addition, you can almost certainly acquire coverage with no waiting period.
The most significant disadvantage of Allstate life insurance is that you’re dealing with a captive insurance company. However, if you work with an independent agency, you can save up to 70% on your life insurance.
When you contact a representative, they cannot go through other insurance providers to show you one that can provide you with a better price. Instead, an independent licensed insurance agent such as The Annuity Expert will search the market for you to determine which insurance carrier offers the best rate and coverage for your specific needs.
Need Help Getting Life Insurance Coverage?
If you have a preexisting medical condition and want to buy life insurance, you will need help from an expert. This person can help ensure you get coverage so you don’t get declined.
Warning: Applying for life insurance without a medical exam can be risky. If you get declined coverage, it could be at least two years before you can get any life insurance.
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