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Allstate Life Insurance Review
Allstate Life Insurance is a solid company. However, Allstate Life is one company of hundreds to choose from. The secret to finding the lowest whole or term life insurance rates is to have options.
Allstate is one of those big names that people have relied on for decades. They’ve provided life insurance policies to many satisfied customers for years.
You know Allstate is good—but are they the best for you? We at TermLife2Go have set out to help you find the answer to that question by offering you valuable information about Allstate Life Insurance.
About Allstate Life Insurance
Created by the also well-known, Sears, Roebuck & Co., Allstate Insurance has helped millions of people through auto, renters, homeowners, motorcycle, and life insurance. There is a good chance that you or someone you know has had some form of Allstate insurance.
Like other large insurance companies, such as State Farm, Allstate operates as a captive agent company. A captive agent is one that works exclusively for the insurance company and generally cannot write business with other carriers outside of its family of insurers.
Life Insurance offered through Allstate Life Insurance Company, Allstate Assurance Company, Lincoln Benefit Life Company and American Heritage Life Insurance Company and in New York, Allstate Life Insurance Company of New York.
Positives of Allstate Life Insurance
Their tagline “You’re in Good Hands” and the logo depicting the hands that will be there to catch you are both very reassuring—which is why it’s stuck with many of us.
The truth be told, their logo and their tagline aren’t lies—so many people who have had Allstate Life Insurance have been safe and secure. Allstate Life Insurance has provided many families with the life insurance coverage they need.
If you already have another kind of insurance through Allstate, then it may be convenient to get a life insurance policy through the same company (although, consider the potential pitfalls of bundling life insurance with your other coverage).
It should be noted, however, that you will probably still have different paperwork and monthly invoices for your auto insurance and your life insurance, so in the end it may not simplify things as much as you think it will. However, it will help you because you’ll only have to remember the name of one insurance company instead of two.
Allstate Life Insurance Policies
Allstate Life Insurance offers two standard forms of coverage: term life versus permanent life insurance
Allstate Term Life Insurance: Level term life insurance offers a policy that is valid for a predetermined amount of time. Usually, the policy lasts for 10, 20, or 30 years.
Basic term is no medical exam life insurance with coverage amounts of $50,000, $100,000 and $150,000.
TrueFit Term Life:
TrueFit is a customizable term life product that can be structured in one year increments so that the premium and face amount can vary depending on how you design your policy.
Allstate promotes "layering" life insurance policies so that you have enough term coverage throughout the different stages of life.
For example, you may consider term life when covering a mortgage or protecting the household's primary income earner. However, once the mortgage has ended or the kids have left the nest, you may no longer need as much coverage.
If you were to layer your policies, you may have a 20 year term that covers income replacement and a 30 year term that covers your mortgage. As time goes by your 20 year policy would drop off (and your premium) and you would still have coverage to pay off your mortgage if you died prematurely.
Allstate Whole Life Insurance:
Allstate Whole Life Advantage is a whole life insurance policy that lasts for your entire life. The policy builds cash value and premium and face amount stays the same.The policy has a feature called "excess credits" which help build additional cash value.
Whole life insurance is a great option when looking to plan for the long term. It works well for life insurance for children, estate planning, and retirement planning.
In addition, whole life works well for those with the desire to practice the infinite banking concept.
Whole life insurance offers some distinct advantages, such as
- Fixed premiums
- Guaranteed death benefit
- Guaranteed cash value growth
- Income tax free policy loans
- Tax deferred growth
You can visit our whole life quote page if you are interested in the cost of whole life insurance.
Allstate Universal Life Insurance:
This is also a life insurance policy valid your entire life that builds cash value. However, Universal Life is more flexible than whole life, allowing the premium and face amount to change.This can be advantageous if you have either limited funds and you cannot make a large premium payment or you have excess funds and you want to store up some additional cash value in your policy for a "rainy day".
Interested in a Universal Life quote? Our life insurance quotes page offers term and UL life insurance quotes.
Allstate Life Insurance Ratings
Insurance companies are rated by external rating agencies so that customers and potential customers can have expert opinion on the company. These ratings organizations assess things like financial health and viability for the future. Allstate has some pretty good ratings from the top three rating agencies in the United States:
- A.M. Best Company: A+
- Standard & Poor’s: AA-
- Fitch: A+
- Moody’s: A2
Ratings updated 12/17/2019.
While there is room for improvement, all three of these rating agencies have given Allstate solid ratings. According to these ratings, Allstate Life Insurance is a safe, financially responsible organization. This makes Allstate a good bet for life insurance seekers.
Cons of Allstate Life Insurance
For many, Allstate is a great choice for a life insurance company. There really isn’t anything “wrong” with Allstate Life Insurance. However, it’s important to understand that when you choose one life insurance company you miss out on what another company may have to offer.
Allstate is great—but are they the best choice for you? To be honest, there really isn’t such a thing as one “best” life insurance company. If there were, we’d be the first to shout it from the rooftops! However, there are certain companies that are better in certain situations.
Which life insurance company is best for me?
This is a very important question to ask when you are shopping for a life insurance policy because what is good for one life insurance seeker may not be good for another. Each life insurance company has a different way of determining rates and underwriting. Most use basic information like:
- Medical records
- Current medical state
- Hereditary illnesses and diseases
Yet, despite the similarities, each company draws different conclusions. That is why one life insurance company may be great for your colleague, but not so great for you.
How do I know if Allstate Life Insurance is best for me?
We suggest speaking with a licensed insurance agent or using our quote tool to shop around. The more you understand your options, the better you’ll be able to answer that question.