Last Updated: November 2020
If you are considering Allstate for your life insurance needs, read our review below to find out if Allstate is a good fit for you.
In this review, we will cover information about the company, life insurance products offered, how competitive Allstate is for life insurance rates, and how to apply for coverage.
- About Allstate Life Insurance
- Allstate Life Insurance Ratings
- Review of Allstate’s Life Insurance Products
- Who Should Consider Allstate for Life Insurance?
- Allstate Has a Slow Application Process
- Allstate Uses Strict Underwriting for Life Insurance
- Pros & Cons of Choosing Allstate Life Insurance
- Compare Allstate to Other Top Life Insurance Carriers
Life Insurance is Boring. Let’s Get To The Root Of It! Here are the key takeaways…
Allstate Life Insurance Company is one of the largest & most stable life insurance companies in the US. Allstate offers the ability to purchase car, home, & life insurance. Allstate offers basic term life insurance products & permanent life insurance options. They also offer a term life insurance product that requires no medical exam.
About Allstate Life Insurance
Allstate is another life insurance provider in the United States that does a fantastic job with branding and awareness. Allstate has prime-time television commercial slots advertising their insurance products and asking consumers if they are truly “in good hands.”
Allstate auto insurance is much more recognized by the general population. However, Allstate does offer some relatively competitive rates on individual life insurance products, which we will discuss further in this review.
Allstate is an American based insurance company that started back in the 1930s.
Currently, Allstate is headquartered in Northfield Township, Illinois, just south of Chicago, where it’s remained since 1967. Allstate is considered one of the largest insurance providers in the world. They have more than 125 billion dollars in total assets and employ more than 70,000 individuals worldwide.
Allstate Life Insurance Ratings
Allstate is one of the largest and strongest life insurance providers currently in business. Financial strength gives us an idea of how financially stable the company is.
Here are Allstate’s current financial ratings:
- A.M. Best: “A+” (superior) rating
- Affordability Index: 9
- Ease of Applying: 7.5
- Customer Service: 9.5
- COMDEX Ranking: 86
A.M. Best is the industry benchmark for financial strength in the life insurance industry. The other three metrics are based on a number of factors including our industry knowledge of Allstate compared with other companies. The COMDEX ranking is a composite score that considers A.M. Best and other top rating agencies.
Learn more about our process for reviewing life insurance companies here.
BBB Ratings and Consumer Complaints
Allstate has an A+ rating with the BBB based on 250 consumer reviews.
Over the last 3 years, Allstate has closed a total of 1382 complaints. Based on our experience, this is slightly higher than we typically see for a company relative in size to Allstate.
Overall, we don’t believe it’s a significant area of the company to be concerned with.
Review of Allstate’s Life Insurance Products
Allstate has several relatively affordable life insurance policies available.
Allstate’s Term Life Insurance Policies
With Allstate, the most common form of life insurance would be their term life products. It comes in two variations that include the Basic Term Life and the TrueFit Term Life.
Basic Term Life
Their Basic Term Life insurance is a very straight-forward product.
- It allows for either 50,000, 100,000 or 150,000 death benefit amounts.
- No medical exam is required.
- Apply with a local agent.
TrueFit Term Life
Allstate’s TrueFit Term Life insurance is another great term policy.
- It is term life insurance available to age 95.
- 10 to 30-year terms available.
- You must apply in person with an Allstate agent.
TrueFit Term life insurance is unique due to the ability to ladder your coverage, which simply means you can increase and decrease coverage as your needs change.
If you are looking for term life insurance, compare Allstate alongside other top life insurance carriers like New York Life Insurance before purchasing a policy.
Who Should Consider Allstate for Life Insurance?
Allstate could be the right choice for a specific group of individuals.
Anyone who currently uses Allstate for other lines of insurance, such as auto or home would be wise considering bundling their coverage.
Companies like Allstate offer discounts to people who use them for multiple lines of insurance coverage, like life and auto, for example.
The most significant factor to keep in mind is that working with Allstate does only present you with one option for coverage, which can be a downfall. Especially for individuals with a long list of prior health conditions.
Always compare rates with the best life insurance companies before deciding who the best fit may be.
Find more reviews on over 50 companies and agencies here, before making your decision.
Allstate Has a Slow Application Process
Allstate’s life insurance application process and underwriting are relatively old school. You will meet with a captive Allstate life insurance agent, uncover your needs and apply for coverage.
Depending on which coverage you choose, you will either be able to waive the medical exam or need to prepare for a medical exam. Following your medical exam, you will be provided an overall health rating, which ultimately determines the rates you will pay monthly for coverage.
Allstate Uses Strict Underwriting for Life Insurance
A significant drawback of working with captive life insurance companies is the stringent underwriting guidelines. Life insurance providers often do this to remain diverse and minimize risk.
This means that many people may not qualify for life insurance with Allstate. If that is the case for you, you can likely find another company that specializes in high-risk life insurance with less strict underwriting.
An independent life insurance agent can help you find a life insurance carrier better suited for your situation.
Pros & Cons of Choosing Allstate Life Insurance
All life insurance companies have unique strengths and weaknesses.
After our careful review of Allstate, here is what we believe to be the most beneficial perks.
- Life insurance with no medical exam is available.
- You can ladder your coverage.
- Allstate has a strong brand and financial ratings.
- You can bundle coverages to save money.
On the flip side, you have some drawbacks to working with Allstate.
- They’re a captive company, meaning their agents can only sell Allstate life insurance.
- They offer limited policy options.
- You can find more competitive pricing available in the open market.
- They have stringent underwriting guidelines.
Compare Allstate to Other Top Life Insurance Carriers
Allstate is worth getting a life insurance quote from, however, we always suggest comparing rates from at least 5 or 6 life insurance companies before purchasing. It’s the best way for you to get the lowest price on life insurance possible.
Compare Allstate life insurance to other companies below. You can also use our free quote tool to see rates from many of the best life insurance carriers.
Leave a Reply