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Allstate; Insider
Allstate Life insurance has been a highly rated insurance company since its inception in 1931. It offers a variety of financial and insurance products. Allstate has over 100 years of experience serving clients all across the country. This gives potential customers peace of mind knowing that they have a rich history of satisfying their insurance customers.
Allstate is well-known for its auto and homeowners insurance offerings. However, the company also offers life insurance. Life insurance policies are available as standalone products or alongside other insurance products.
It's important to note Allstate no longer underwrites life insurance policies after selling its life insurance and annuity business to Blackstone. However, Allstate still offers life insurance along with its partners, John Hancock Life Insurance, Life Insurance, Life Insurance, or Life Insurance.
Allstate can provide life insurance, but another well-respected insurance company will offer coverage and pay benefits if you file for a claim. Permanent life insurance that builds cash value will have dividends. The insurance partner underwriting your policy will also supervise the payment of dividends.
Learn more about the different types of life insurance Allstate offers.
Allstate offers life insurance plans
Allstate Life insurance provides both permanent and term life insurance coverage. This makes it stand out among other online life insurance providers. Allstate also offers a LifeTrek toolTo help customers decide the right range, they need to know details such as how long they want their coverage to continue and what they want to do with life insurance.
The chart shows that Allstate offers both permanent and term life insurance coverage. Here's an overview of how each type of coverage works.
Term life insurance
Term life insuranceThis policy provides coverage for a certain period. In exchange for a death benefit, consumers must pay regular premiums. Coverage is suspended when a term insurance policy ends. Some companies offer the option for insured parties to convert their term policies to a whole-life or permanent policy at specific mile markers. The insured would need to undergo a new medical exam and apply and would be eligible for a new life insurance policy.
Allstate life insurance policies have terms that last between 10 and 40 years. Coverage amounts range from $25,000 up to $1 Million. Individuals aged 18-60 may be eligible. Allstate also offers policies that do not require a medical exam.
Universal life insurance
Universal life insurance is permanent, with a savings component that increases cash value over the years. This coverage can be extended for a lifetime if you pay the required premiums. Universal life insurance is also known for its flexibility in terms of when you pay premiums, and the death benefit.
Allstate offers a variety of universal life insurance policies. Customers can adjust their coverage to meet changing needs. This type of plan can also be used for retirement planning, as it offers the option to borrow against the policy or withdraw money early.
Whole-life insurance
Whole life insuranceThis is another type permanent life insurance that has a set benefit. You purchase a policy with a maximum lifetime limit and pay on a schedule. Many whole-life insurance policies have waiting periods. In other words, if you are not alive within the first two years, the insurance company may pay your beneficiaries the premiums they paid up until that point. After the waiting period, beneficiaries are eligible for the full benefit. To have coverage that lasts a lifetime, consumers who choose whole-life insurance must pay premiums. Allstate offers whole life insurance in different amounts.
Universal variable life insurance
Universal variable insurance is a type if permanent life insurance that provides an investment component and builds cash value. In short, some buyers withdraw money while they're still alive on a set schedule for retirement or other investment needs. Allstate pays the rest, less any penalties or death benefits. You have some flexibility in how you pay premiums, and when you receive the death benefit. If the insurance policy has sufficient funds, coverage can last for a lifetime.
Allstate offers variable universal life insurance. The amounts vary. This type is often regarded as risky due to the fact that the cash value of each policy is directly invested in the stock market via subaccounts.
Additional coverage options available through Allstate
Buyers can customize permanent life insurance policies from Allstate Life insurance with add-ons or "riders." These riders can be added to your policy for an additional fee. But the right combination of riders can improve families' coverage to meet immediate and long-term needs. Here are some examples of standard insurance riders:
Accelerated death benefit: Allstate allows insured parties to withdraw the lower of 25% of the maximum benefit or $250,000 each year until their policy balance is 0. Allstate allows insureds to withdraw the lower 25 percent of the maximum benefit or $250,000 every year until their policy balance is $0.
Accidental death benefitThis rider offers an additional death benefit to customers who have been injured in an accident. It is commonly referred to as "double indemnity."
Automatic premium loan provision rider: This rider ensures your life insurance premium is paid using a loan against your policy's cash value if you forget. Allstate agents can discuss the specific terms of this type loan with buyers.
Guaranteed insurability rider: This riders allows the insured to purchase more life insurance coverage over time regardless of their health.
Spouse & children's riders: This rider provides add-on coverage for the insured's spouse and children. Note that additional coverage is only available for a specified term. So unless it's converted to a permanent life insurance policy, the benefits of any add-ons would expire. Allstate agents can provide this rider to help you compare permanent life policies.
Term rider: Term riders let the insured adjust their level of life insurance for a specific length of time, such as during a person's highest earning years. In other words: Insurers can buy a permanent policy and increase their death benefit if they pass away within a certain time period. The policy will not be cancelled after the term expires. The death benefit would be reduced to its original value.
Waiver or reduction of premium: This riders allows the insured to continue coverage without having to pay premiums in the event that they become disabled before a certain age. The cutoff age for most policies is either 60 or 65.
How much does Allstate’s life insurance cost?
Allstate Life insurance prices can vary depending on what type of coverage you purchase, whether you add riders to your policy, and how old and healthy the insured is. Depending on the policy purchased, term life insurance policies can be more affordable as they provide coverage that lasts between 10 and 40 years. However, if your term policy is converted, premiums would increase based on the above factors, making it more expensive overall.
Allstate offers a free online quote engine to help customers get term insurance policies. Customers must speak with an Allstate agent to obtain a quote for permanent coverage. We found that a 30-year old woman in good health could purchase $150,000 term life insurance starting at $11.79 per monthly.
Life insurance coverage costsThe length of time that the insured wishes to keep term coverage will determine how much they will increase. For example, a 30-year-term policy will be more expensive than a 10-year term insurance policy.
Permanent life insurance policies cost more in general, but there are notable benefits that shouldn't be ignored. Permanent coverage options pay dividends and increase the cash value an insured can borrow against. Because of their temporary nature, insureds are not allowed to borrow against term life insurance policies nor make early withdrawals. To get a quote for permanent life insurance from Allstate, you'll need to speak with one of its representatives.
How do I file claims against Allstate?
Allstate Life insurance offers customers many ways to file a claims, including through its website. Allstate.com. Once you're an Allstate customer, you can sign up for an online account and access a dashboard that includes details on your insurance policies. You can file a claim to Allstate for homeowners insurance, life insurance, or auto insurance.
Allstate customers can reach customer support at 1-800-ALLSTATE any time of the day. For general life insurance questions, call 1-800-366-1411.
Who are the ideal customers of Allstate?
Allstate Life insurance provides almost any type of life insurance coverage that a consumer could need. However, its policies are designed for average consumers. This means that the company cannot provide high-risk insurance to drivers with a complex driving record, life insurance applicants with certain diseases, or foreign nationals. Allstate's life insurance underwriting remains conservative as Allstate passes the underwriting off to equally conservative life insurance providers.
Life insurance companies will not cover people with preexisting conditions, such as multiple sclerosis, cancer, diabetes, and other diseases. Some companies offer life insurance policies for high-risk individuals, such as seniors and HIV patients, if they meet certain criteria. Based on our research, Allstate partners don’t offer these specialized life insurance policies.
What does "no medical exam" mean with Allstate?
Allstate Life insurance offers a variety of term options life insurance policies with no medical exam required. This allows you to skip the hassle of a physical exam and blood draw but does not negate the importance of asking questions about your overall health.
The application for no medical exam term coverage requires you to "answer some more detailed questions about health and lifestyle," according to Allstate's website.
Questions that are asked during the application process to no medical exam coverage include:
Participation in potentially dangerous sports
Usage of tobacco products
How often you drink alcohol
How often you travel to other countries
How many of your parents, siblings, or biological children have been diagnosed, treated, or died from cancer, heart disease and stroke before age 60?
Current height and weight
Your entire medical history, including any conditions that you have had treated in the last five years
Allstate also pulls data form public records. This includes information about your age, certain medical records, etc. Allstate may offer you term life insurance if you are satisfied with the application. There is no need to take a medical exam. If your beneficiaries file a claim, however, being dishonest may result in you being denied death benefits.
Note that Allstate's life insurance questionnaire adds the following:
Please be truthful and accurate. All information you provide will be verified. This will form the basis of any insurance issued. Inaccuracies may result in coverage being terminated or delayed.
Both insurance companies have captive agents, which are agents who only quote one company. If you are not satisfied with the quotes you receive, or if you are denied, you will need a new agent to quote you other options. Allstate Life insurance and State Farm's prices, customer service, and available policies are comparable. The individual applicant may determine the winner.
Compare Allstate vs. Northwestern Mutual
If you're looking for a life insurance company offering robust permanent life insurance coverage through dedicated agents, check out Northwestern Mutual. It offers term life insurance, whole and universal life insurance, as well as universal variable life insurance. This is similar to Allstate Life insurance. But unlike Allstate, Northwestern MutualUnderwrites its policies. J.D. Power's 2022 U.S. Individual Life Insurance Study with 794 of 1,000 possible points. AM Best also gave the company an A++ rating.
Northwestern Mutual’s underwriting process is also conservative. It does not accept high-risk applicants for life insurance or offer specialized programs. It does offer life insurance policies, which Allstate does not. These policies can be strong investment tools for retirement. Plan strengths include accelerated death benefits in cases of severe illness or injuries, as well as options for healthy senior retirement.
Compare Allstate vs. employer-based life insurance
You might choose to continue with life insurance offered by your workplace. Acceptance is almost guaranteed, and premiums can be low. This route is not for everyone. There are many downsides to this route. For example, any life insurance you get through work is unlikely to be portable, meaning you'll lose coverage if you switch jobs or retire. Many workplace policies offer a death benefit of between $25,000 and $100,000 depending on how much money you are willing to put down each month. Benefits can be used to pay funeral expenses or a small additional amount. But it's not meant to secure your family's financial future after you're gone.
Allstate Life insurance offers life insurance policies that can be continued even if you retire or change jobs. You can choose the amount of life insurance coverage that you require, rather than what your employer selects. Allstate partner insurance policies can be purchased by insured parties regardless of size. There's a risk of being denied based on medical history, lifestyle, etc. Premiums are also more expensive than a workplace plan.
Methodology
This review compares Allstate Life insurance policies with coverage options. It also includes life insurance policies from a wide variety of insurers. To learn about riders, exclusions, etc., we review products on carrier websites. We also use customer reviews websites and other online resources. Once all of this is done we rank companies using the facts that we have gathered.
A licensed agent can help you find the right coverage for your life. Agents can help you create a plan that meets your needs. They will also evaluate the likelihood of approval. Insurers will report any denials you receive from life insurance companies, which can increase your chances of being denied again. While Business Insider provides a comprehensive overview of life insurance options available from different companies, an agent can help you find the right policy for you.
FAQ
Can you get Allstate Life Insurance without a Medical Exam?
Allstate Life insurance offers term policies to all eligible people without requiring a medical exam. Applicants must answer questions about their lifestyle and medical history. The majority of life insurance policies that do not require a medical exam are issued to healthy, young people. Insurance agents can run quotes for a medical exam policy if you don't qualify for a no-exam life insurance policy.
Is Allstate losing its life insurance?
Allstate does NOT issue life insurance policies directly. Instead, Allstate offers policies through partners such Lincoln Financial, Protective Life, and John Hancock.
What type of life insurance does Allstate offer?
Allstate offers term life insurance as well as permanent life insurance options such whole life, universal and variable life.
How long does Allstate take to pay a claim for life insurance?
Allstate states that the process for life insurance claims takes approximately one to two weeks and beneficiaries receive payments shortly thereafter.
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