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 Company
- Allstate Life Insurance Company Financial Ratings
- Allstate Life Insurance Products Offered
- What Makes Allstate Life Insurance Unique?
- Pros of Choosing Allstate
- Cons of Choosing Allstate
- Compare Allstate to Other Top Life Insurance Carriers
About Allstate Life Insurance Company
Allstate Life Insurance Company 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 is much more recognized by the general population as a reliable provider for auto insurance. 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 Company Financial 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
BBB ratings and consumer complaints can sometimes paint a negative image of a company, whether it’s factual or not. The problem with BBB ratings is that they are typically involving small complaints such as billing. Nonetheless, it’s still positive for the consumer to have the full picture of a life insurance company before ultimately deciding.
Currently, Allstate, according to the BBB, is being provided an A+ rating based on 250 consumer reviews. However, out of 5 stars, Allstate currently is only rated a 1-star company. Again, 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.
Allstate Life Insurance Products Offered
Allstate is much more known for its popular insurance products, including home, auto, and even other lines such as renters and boat insurance. However, Allstate does have options for consumers for relatively affordable life insurance.
You can currently choose between the following options for life insurance coverage based on your unique circumstances.
- Term Life Insurance– This is typically your best option when you need temporary coverage for primary needs such as income replacement and to cover a spouse or children if something was happening to you.
- Whole Life Insurance– Whole life insurance can be a wise choice for a variety of reasons.(Some examples include locking in rates for a lifetime and having guaranteed coverage until death. Not to mention the fact that whole life insurance does grow cash value.)
- Universal Life Insurance– Universal life insurance is excellent for individuals wanting a blend of protection and cash value build-up. However, Universal Life can be relatively complex, and if this is an option you are considering, it’s always best to work with a professional and licensed agent to gain a full understanding of the product.
- Variable Universal Life Insurance– Variable Universal Life is one step up in complexity from universal life due to using investment components that utilize unique risk profiles and strategies. (This requires a registered representative to sell to consumers, and it’s best to work closely with an agent before purchasing any variable life 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.
The Basic Term Life insurance is about as black and white as it gets. It allows for either 50,000, 100,000 or 150,000 death benefit amounts. This is the amount that would be provided to your family if something did happen to you.
The most significant benefit to this policy option with Allstate is the fact that no medical exam is required. For those of you scared of needles or continuously on the move and busy with life/work, this may be an option to consider. However, keep in mind that 150,000 in coverage doesn’t go very far in the grand scheme of things. Especially with the inflating prices in today’s economy.
If you opt to purchase the TrueFit Term Life insurance with Allstate, you get a bit more bang for your buck. The most significant downfall with this product is the fact that it requires an Allstate agent to sell you the policy.
Some consumers may like this face to face interaction, and some may prefer to work with an independent agent that can present more options. Some may even prefer to use a complete online system to compare rates and purchase life insurance. Nonetheless, the TrueFit Term life plan allows you to start with an initial death benefit amount and slowly drop the coverage as your needs decrease.
This is a nice benefit to consider that can provide substantial savings that most other life insurance companies do not offer. Currently, you can select between 10, 15,20,25, or 30 years for coverage durations.
What Makes Allstate Life Insurance Unique?
Allstate is unique in several ways compared to other life insurance providers. First and foremost, they are a recognized powerhouse company and have been for a long time.
Secondly, the 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. Outside of these two considerations, Allstate is unique compared to other life insurance providers for the mere fact that you
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 no-exam term life insurance option with Allstate, the application process and underwriting are going to be a 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
If you have been declined for coverage with Allstate, you are not alone. 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 that is more prone to insuring individuals with a longer list of prior medical conditions.
Pros of Choosing Allstate
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 you can enjoy.
- No exam options available
- Ability to ladder your coverage
- Strong brand with strong financial strength
- Ability to bundle other coverages
Cons of Choosing Allstate
On the flip side, you have some drawbacks to working with Allstate.
- Captive company
- Limited options
- More competitive pricing available
- 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.
Here are some other companies to consider.