Allstate is one of the largest life insurance companies in the United States, offering a wide range of products and services to meet the needs of its customers. The company is known for its strong financial stability, excellent customer service, and competitive rates. In this article, we have covered all the information you will need on Allstate life insurance.
All About Allstate Life Insurance
Established in 1931 as a Sears subsidiary, Allstate Life Insurance Company offered auto insurance coverage through mail order. The business expanded its insurance offerings over time to accommodate its expanding clientele. Allstate became public in 1993 after Sears sold its stake in the company. 2011 saw the company purchase Esurance. The company is based in Illinois.
Allstate offers house, renters, condo, landlord, business, motorcycle, ATV, and life and vehicle insurance. It provides life insurance through outside companies.
Allstate provides term, whole, variable, and universal life insurance. Entire life plans start at $10,000, while term and universal policies include coverage of as little as $50,000. Term life insurance policies have minimal periods of just ten years, but if your circumstances change, you can convert to longer-term or even permanent coverage.
Allstate offers term insurance policies without cash value building, but their whole, universal, and variable universal life plans do. The fact that there aren’t many restrictions on how much value you can acquire or lose with variable universal insurance could weaken the financial stability of your retirement portfolio. Additionally, you may get dividends from whole-life policies that you may use to increase your cash value, pay for more coverage, or apply toward future premiums.
This also applies to whole, universal, and variable universal policies. At the same time, you can obtain an online estimate for term insurance; you must meet with an Allstate agent to acquire precise pricing.
Cost of Allstate Life Insurance
Several variables affect Allstate’s life insurance prices, such as age, gender, place of residence, health, use of tobacco products, type of policy, and desired coverage options.
Because term life insurance only lasts for a predetermined period, it is typically the least expensive type of coverage available. Whole, universal, and variable universal plans are more costly because they can increase in value over time.
The more coverage you get, regardless of the kind of policy you select, the more your premiums will be. This is true for how long the term is as well. For instance, a $50,000 term policy with 30 years of coverage will cost more than a $50,000 policy with 10 years of coverage. The cost of your coverage will go up if you add riders.
To learn the precise price, speak with your local agent. You might be eligible for a multi-policy discount if you have other insurance policies with Allstate, such as homeowners’ or auto insurance, which might lower premiums.
Types of Allstate Term Life Insurance
A person effectively agrees with an insurance company when they buy life insurance. While the insurer must pay the policyholder’s beneficiaries a death benefit upon the policyholder’s dying, the policyholder is responsible for paying the premiums every month. Numerous factors, such as the policyholder’s age, gender, health, and lifestyle, might affect the precise amount of the premium and death benefit.
#1. Term Life Insurance
If the insured passes away during a given term—which usually corresponds with a time of financial obligations—term life insurance pays out a death benefit. For instance, you may pay off your mortgage and get coverage for thirty years. After the term ends, you might be able to renew the policy at a higher cost. Allstate provides term life insurance at reasonable prices, with durations extending up to 40 years. The policies of Allstate’s partners can also be converted to permanent coverage.
#2. Universal Life Insurance
Permanent coverage, known as universal life (UL) insurance, accrues cash value over time that you can borrow against or take out as needed. You may raise or lower your premium on a universal life insurance policy, subject to certain restrictions, and you may also be able to adjust the coverage as your needs change.
#3. Indexes Universal Life Insurance
Like a standard universal life insurance policy, an indexed universal life (IUL) policy’s cash value increases based on how well an index of the stock market, like the S&P 500, performs. The cash value is not directly invested in the index. Thus, a decline in its value won’t affect it. In a similar vein, gains are limited. With this policy, you can still be protected from market losses and participate in restricted market gains.
#4. Permanent Life Coverage
One kind of permanent life insurance is whole life insurance, which accrues cash value throughout the policy with level premiums. It costs a lot more than a term life policy and could cost more in the beginning than a universal life policy, but as long as premiums are paid, the death benefit is guaranteed for life.
#5. Variable Universal Insurance
Subaccounts, which function similarly to mutual funds for VUL policies, enable you to invest the cash value component of your variable universal life (VUL) insurance directly in the stock market. You are now exposed to the market, unlike with IUL insurance. The riskiest kind of policy to own are VUL policies, since there are no restrictions on gains or losses.
#6. Riders
Riders are add-ons to your insurance that expand their coverage to accommodate different requirements. The available riders will differ based on the provider Allstate assigns you to, as it is no longer responsible for underwriting its policies. Here are some of the riders that you can choose from:
Younger Rider
This extends your dependant children’s term insurance. Most child term riders cover every dependent kid under a specific age, and many of them allow converting the term coverage to permanent insurance once the child reaches adulthood.
This enables you to stop paying your premiums under specific conditions. For instance, if you become entirely handicapped, you can stop paying your premiums if you have a waiver of premium rider for disability. Usually, there is a waiting period before you can set your payments on hold.
Accidental Death Benefits Rider
If an accident results in the insured’s death, this rider offers an extra benefit.
Terminal Illness Rider
Suppose the insured person is diagnosed with a terminal condition that will cause them to pass away within 12 to 24 months. In that case, this accelerated benefit rider allows them to access a portion of the death benefit while still alive.
Chronic Illness Riders
Suppose the insured is diagnosed with a chronic condition that affects their capacity to undertake at least two activities of daily living. In that case, they can obtain a portion of the death benefit before passing with this rider.
Allstate Customer Representatives
You can contact Allstate’s customer service representatives around the clock by calling their general support line at 1-800-ALLSTATE. You can get in contact with an agent or call any of the following numbers if you have questions about life insurance:
- Money orders: 1-800-525-9287
- Appeals: 1-800-366-3495
- 1-800-366-1411 for general life inquiries
- Quotes for the Whole Life and Universal: 1-800-497-7970
- 1-800-268-5619 in New York
- Most of your transactions, including submitting claims and making payments, may be done online by logging into your account.
- Policyholders can utilize a live chat feature.
- You can also message Allstate at any time by using this online form.
Extra Options for Coverage from Allstate
Allstate offers permanent life insurance coverage that customers can personalize with “riders” or add-ons. There are extra costs for specific riders. However, the correct mix of riders can enhance a family’s coverage to address both short- and long-term requirements. Typical insurance riders include the following:
#1. Accelerated Death Benefit
In the event of specific occurrences, like the diagnosis of a terminal disease, this add-on coverage allows customers to obtain a portion of their death benefit during their lifetime. Until the policy balance reaches zero, Allstate permits insured parties to withdraw less than $250,000, or 25% of the maximum amount, annually.
#2. Accidental Death Benefit
Insured clients who pass away in an accident will receive an additional death benefit by using this rider. Often, it’s called “double indemnity.”
Rider for automatic premium loan provision: If you forget to pay your life insurance premium, this rider ensures it is paid by taking out a loan against your policy’s cash value. Purchasers should speak with an Allstate agent about the specifics of this kind of loan.
#3. Guaranteed Insurability Rider
This rider allows the policyholder to gradually increase their level of life insurance coverage, independent of their health and other variables.
#4. Riders for Spouses and Kids
This rider offers additional coverage for the insured’s spouse and kids. It should be noted that supplementary coverage has a term limit. The benefits of any add-ons would, therefore, expire unless it was converted to a permanent life insurance policy. Agents from Allstate can provide quotes for this rider so that each person can compare it to a permanent life policy.
#5. Term Rider
Term riders allow the policyholder to modify their level of life insurance for a predetermined period, such as their prime earning years. In other words, if an insured person passes away within a given term, they can get a permanent life insurance policy and raise the death benefit. The policy won’t expire at the end of the term. The death benefit would return to what it had before.
If the insured becomes handicapped before a certain age, this rider allows coverage to be maintained without paying premiums. Usually, 60 or 65 is the cutoff age.
What Happened to Allstate Life Insurance?
As previously stated, Allstate agreed in January to pay Blackstone Group’s Everlake US Holdings Company $2.8 billion to acquire most of its life and annuity business from Allstate Life Insurance Co.
Is Allstate Good at Paying Claims?
Compared to other insurance companies, Allstate pays claims well, according to the most recent claims satisfaction survey conducted by J.D. Power. Compared to the industry average of 873 out of 1,000, Allstate’s claims process received a score of 889 out of 1,000.
What is the Financial Rating of Allstate Life Insurance Company?
Members of the Allstate Insurance Group now have a Long-Term Issuer Credit Rating (Long-Term ICR) of “aa-” (Superior) instead of “aa” (Superior). Nonetheless, the A+ (Superior) Financial Strength Rating (FSR) was maintained.
Did Allstate Sell its Life Insurance Company?
The Allstate Corporation, the main insurance provider in the United States, has successfully sold Allstate Life Insurance Company (ALIC) and a few of its subsidiaries to companies run by Blackstone, a massive private equity firm.
Is Allstate Known for Denying Claims?
Allstate’s Dubious Claims Management Techniques
Allstate is well-known for its dubious business methods that deceive policyholders or fail to protect them. Refuse, delay, and defend assertions.
What is Allstate’s Reputation?
Compared to other large organizations, Allstate insurance reviews gathered for the J.D. Power 2023 U.S. Insurance Shopping StudyTM place the company’s shopping experience below average. With an 853 out of 1,000 rating, the insurance indicates that most Allstate clients are happy with their interactions.
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