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
- A Review of Allstate’s Life Insurance Products
- Who Should Consider Allstate for Life Insurance?
- Pros & Cons of Allstate Life Insurance
- Compare Allstate to Other Top Life Insurance Carriers
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 certainly had its fair share of 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.
Company History and Background
Allstate is an American based insurance company who planted their roots into the industry back in 1930. Originally, Allstate was part of the Sears, Roebuck, and Company, and in 1993, Allstate was born.
Currently, Allstate is headquartered in Northfield Township, Illinois, which just south of Chicago, where it’s remained since 1967. Allstate is considered one of the largest insurance providers in the world and has relied heavily on its advertising efforts in the past few decades using their catchy and remembered slogan “Are You in Good Hands?” This has been the company’s slogan since 2004.
Beginning the company during the worst economic times this country has ever seen (the 1930s) and showing continued growth is a factor to consider, and a factor to help consumers understand that Allstate is indeed a reliable insurance provider.
Allstate Life Insurance Ratings
Financial strength ratings are not a factor to ultimately put all your consideration towards as a consumer. However, financial strength ratings do go a long way towards helping consumers understand how strong, reliable, and solvent an insurance provider is. Allstate is one of the largest and strongest life insurance providers currently in operation.
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.
Allstate currently rests on more than 125 billion dollars in total assets and employs more than 70,000 individuals worldwide. At last check, Allstate now insures more than 16 million homes in the United States.
While Allstate has a few ratings of improvement that they could potentially reach, overall, they have a positive outlook, strong financial backbone, and are certainly a life insurance company you can trust with your life insurance coverage needs.
BBB Ratings and Consumer Complaints
Allstate has an A+ rating with the BBB based on 250 consumer reviews. However, out of 5 stars, Allstate currently is only rated a 1-star company. However, this isn’t always an accurate picture of the company.
Over the last 3 years, Allstate has closed a total of 1382 complaints, which 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. More important than financial strength ratings and consumer complaints are the life insurance products offered by insurance carriers.
A Review of Allstate’s Life Insurance Products
Allstate has several relatively affordable life insurance policies available.
Allstate has Good 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.
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.
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.
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.
Often, companies such as Allstate, who offer several lines of coverage, provide unique discounts to individuals who are loyal to the company and bundle coverages. Allstate is also an excellent option for individuals who need that popular name, brand recognition, and a financially stable company to feel comfortable purchasing.
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 several life insurance companies before deciding who the best fit may be.
Application Process and Underwriting
Outside of the life insurance with no medical exam option with Allstate, the 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 complete 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.
Next Steps If You Have Been Declined
A significant drawback of working with captive life insurance companies is the stringent underwriting guidelines.
Life insurance providers often due to this to remain diverse and minimize risk. However, the best solution you can implement to being declined for coverage is to work with an independent life insurance agent who can effectively find you a life insurance carrier better suited for your situation.
Pros & Cons of 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.
- No exam options available
- Ability to ladder your coverage
- Strong brand with strong financial strength
- Ability to bundle other coverages
On the flip side, you have some drawbacks to working with Allstate.
- Captive company, meaning their agents can only sell Allstate life insurance
- Limited options
- More competitive pricing available in the open market
- Stringent underwriting guidelines
Compare Allstate to Other Top Life Insurance Carriers
Allstate is worth running a quote with. However, we always suggest running a quote with at least 5-6 life insurance providers before purchasing. It’s the best way for you to get the lowest cost possible and to have the best chance of being approved.
Below are some other life insurance companies to consider.