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Allstate; Insider
Allstate Life insurance is a highly-rated insurance company offering various insurance and financial products since its founding in 1931. With nearly 100 years of experience serving clients nationwide, potential customers can rest assured Allstate has a long and storied history of satisfying its insurance customers.
While Allstate is known for its auto and homeowners insurance offerings, the company also offers life insurance. Life insurance policies can be purchased alongside other insurance products or as a standalone product.
It's important to note Allstate no longer underwrites life insurance policies after selling its life insurance and annuity business to Blackstone. However, the company still offers life insurance alongside partners such as Life Insurance, Life Insurance, and John Hancock Life Insurance.
In short, you can buy life insurance through Allstate, but another highly-rated insurance company will provide coverage and pay out benefits if you file a claim. In the case of permanent life insurance that builds cash value, the insurance partner underwriting your policy will also oversee the payment of dividends.
Read on to learn about the types of life insurance coverage Allstate offers and other details about this popular insurance provider.
Life insurance plans from Allstate
Allstate Life insurance offers both term and permanent life insurance coverage, which helps it stand out from competing online life insurance providers. Also, Allstate provides a LifeTrek tool to help customers determine the ideal range based on details like how long they want their coverage to last and what they hope to accomplish with life insurance.
The main types of life insurance offered through Allstate include the following:
Types of life insurance
Coverage length
Builds cash value
Term life insurance
10-40 yrs
No
Universal life insurance
Lifetime
Yes
Whole life insurance
Lifetime
Yes
Universal variable life insurance
Lifetime
Yes
The chart above shows Allstate offers both term and permanent life insurance coverage. Here's an overview of how each type of coverage works.
Term life insurance
Term life insurance provides coverage for a specific period, during which consumers pay regular premiums in exchange for a death benefit. When a term life insurance policy ends, coverage is suspended. Some companies allow insured parties to convert term policies to a whole or permanent life policy at specific mile markers. But the insured would have to complete a new medical exam and application and qualify just as they would for a new life insurance policy.
Terms for life insurance policies from Allstate last anywhere from 10 to 40 years, and coverage amounts range from $25,000 to $1 million. Individuals ages 18 to 60 may qualify. In addition, Allstate offers policies with no medical exam required.
Universal life insurance
Universal life insurance is permanent life insurance with a savings component that builds cash value over time. This coverage can last a lifetime, provided you pay the required premiums and meet other requirements for the specific policy you buy. In addition, universal life insurance is known for its flexibility regarding when you pay premiums and the death benefit.
Amounts of universal life insurance offered through Allstate vary, although customers can often increase or decrease coverage to suit changing needs. Some consumers also use this type of plan for retirement planning with options to withdraw money early or take out a loan against the policy.
Whole life insurance
Whole life insurance is another type of permanent life insurance coverage with a set benefit. In short, you purchase a policy with a max lifetime limit and make payments on a set schedule. Many whole life insurance policies have waiting periods. In short, if you die within the first 1-2 years, an insurance company might pay your beneficiaries back for the premiums you paid up to that point. After the waiting period, beneficiaries would qualify for the full benefit. Consumers who choose whole life must pay premiums and meet other policy-specific requirements for the coverage to last a lifetime. Amounts of whole life insurance offered through Allstate vary.
Universal variable life insurance
Universal variable life insurance is a type of permanent life insurance that builds cash value and offers an investment component. In short, some buyers withdraw money while they're still alive on a set schedule for retirement or other investment needs. Then Allstate pays the remaining number minus penalties as applicable as a death benefit. This policy also has some flexibility regarding when you pay premiums and the death benefit. Coverage can last a lifetime if the insurance policy is adequately funded.
Amounts of universal variable life insurance offered through Allstate vary. This type of coverage is often considered risky since the cash value component of each policy is invested directly in the stock market through subaccounts.
Additional coverage options from Allstate
Buyers can customize permanent life insurance policies from Allstate Life insurance with add-ons or "riders." These riders come with extra fees. But the right combination of riders can improve families' coverage to meet immediate and long-term needs. A few standard insurance riders include:
Accelerated death benefit: This add-on coverage lets consumers access part of their death benefit during their lifetime if certain events occur, such as the diagnosis of a terminal illness. Allstate allows insured parties to withdraw the lower of 25% of the maximum benefit or $250,000 each year until the policy balance is $0.
Accidental death benefit: This rider secures an added death benefit for insured customers who die in an accident. It is commonly referred to as "double indemnity."
Automatic premium loan provision rider: This rider ensures your life insurance premium is paid using a loan against your policy's cash value if you forget. Buyers should discuss the exact terms of this type of loan with an Allstate agent.
Guaranteed insurability rider: This rider lets the insured purchase more life insurance coverage over time, regardless of health and other factors.
Spouse & children's riders: This rider provides add-on coverage for the insured's spouse and children. Of note, additional coverage is limited to a set term. So unless it's converted to a permanent life insurance policy, the benefits of any add-ons would expire. Allstate agents can quote this rider to compare to permanent life policies for each individual.
Term rider: Term riders let the insured adjust their level of life insurance for a specific length of time, such as during a person's highest earning years. In other words, insureds can buy a permanent life policy and increase the death benefit if they die within a specific term. After the term expires, the policy will not lapse. The death benefit would decrease to its original value.
Waiver of premium: This rider makes it possible to maintain coverage without paying premiums if the insured becomes disabled before a specific age. Generally, the cutoff age is 60 or 65.
How much does life insurance from Allstate cost?
The cost of life insurance from Allstate Life insurance can vary widely based on the type of coverage purchased, riders added to the policy, and the age and health of the insured. This said term life insurance policies are more affordable since this coverage lasts only 10 to 40 years, depending on which policy you buy. However, if you convert your term policy, premiums would rise based on the factors listed above, at which time it would be more expensive overall.
Customers have to speak with an Allstate insurance professional to get a quote for permanent coverage, but the company also offers an online quote engine for term insurance policies. Using the quote engine, we found a 30-year-old woman in excellent health could purchase $150,000 in term life insurance without a medical exam starting at $11.79 per month.
Life insurance coverage costs increase based on the time the insured wants to maintain term coverage. For example, a term policy built to last 30 years will cost more than a 10-year term life insurance policy.
Permanent life insurance policies cost more in general, but there are notable benefits that shouldn't be ignored. Some permanent coverage options also pay dividends and build cash value the insured can borrow against. However, because of the temporary nature, insureds cannot borrow against term life insurance policies or make early withdrawals. To get a quote for permanent life insurance from Allstate, you'll need to speak with one of its representatives.
How do I file claims with Allstate?
Allstate Life insurance offers customers several ways to file a claim, including through its website at Allstate.com. Once you're an Allstate customer, you can sign up for an online account and access a dashboard that includes details on your insurance policies. You can file a claim for life insurance, auto insurance, homeowners insurance, and other Allstate policies.
Allstate customers can reach customer service around the clock at 1-800-ALLSTATE. Meanwhile, general life insurance inquiries should go to 1-800-366-1411.
Who are the ideal customers for Allstate?
Allstate Life insurance offers nearly any type of life insurance coverage a consumer can buy. But its policies are meant for average consumers. By this, we mean the company cannot cater to high-risk insureds, whether drivers with a complicated driving record or life insurance applicants with a history of certain diseases or foreign nationals. Allstate's life insurance underwriting remains conservative as Allstate passes the underwriting off to equally conservative life insurance providers.
Life insurance companies avoid preexisting conditions like diabetes, cancer, and multiple sclerosis. But some companies offer life policies for high-risk groups like seniors, HIV patients who meet specific criteria, and others. Unfortunately, based on our search, Allstate partners do not offer these specialized life insurance policies.
What does "no medical exam" mean with Allstate?
Allstate Life insurance offers some term life insurance policies with no medical exam required. So you can skip the hassle of an in-person medical exam and blood draw, but it does not mean forgetting questions about your health.
The application for no medical exam term coverage requires you to "answer some more detailed questions about health and lifestyle," according to Allstate's website.
Questions asked during the application process for no medical exam coverage involve:
potentially risky sports activities you participate in
usage of tobacco products
how often you drink alcohol
how often you travel outside the country
whether any of your biological siblings or parents have been treated, diagnosed, or died from cancer, heart disease, or stroke before age 60
current height and weight
your entire medical history, including all conditions you have been treated for during the last five years
Keep in mind Allstate also pulls data from public records, which includes age, certain medical records, and more. If Allstate is satisfied with your application, you may be offered term life insurance with no medical exam required. However, being dishonest could lead to being denied death benefits if your beneficiaries file a claim.
Note that Allstate's life insurance questionnaire adds the following:
Please respond honestly and accurately. All your info will be verified and will be the basis for any insurance issued. Inaccuracies could result in delays or terminated coverage.
Compare Allstate vs. State Farm
If you're looking for a highly-rated insurance company with high marks from third-party ranking agencies, consider State Farm Life Insurance for your life insurance needs. This company earned the top spot in J.D. Power's 2022 U.S. Individual Life Insurance Study with 839 out of 1,000 possible points. Not only that, but State Farm offers a range of coverage options, including term life, whole life, and universal life insurance.
Both insurance companies work with captive agents (insurance agents who only quote for one company). So if you are dissatisfied with the quotes you receive or are denied, you will need to find a new insurance agent to quote other options. Allstate Life insurance and State Farm's prices, customer service, and available policies are comparable. The winner may differ based on the individual applicant.
Compare Allstate vs. Northwestern Mutual
If you're looking for a life insurance company offering robust permanent life insurance coverage through dedicated agents, check out Northwestern Mutual. It provides term life insurance, whole life, universal life, and universal variable life, just like Allstate Life insurance. However, unlike Allstate, Northwestern Mutual underwrites its policies. Northwestern Mutual earned the 4th spot in J.D. Power's 2022 U.S. Individual Life Insurance Study with 794 out of 1,000 possible points. The company has also received an A++ rating with AM Best.
Northwestern Mutual is similarly conservative in its underwriting process. It does not take on high-risk life insurance applicants or offer specialized programs. What it does offer (that Allstate does not) are life insurance policies that can be robust investment tools for retirement and beyond. Plan strengths apply to accelerated death benefits in the event of severe illness or injury, along with options for a healthy senior retiring.
Compare Allstate vs. workplace life insurance
You may stick with life insurance offered through your workplace. Premiums are low, and acceptance is virtually guaranteed. But there are plenty of downsides to consider if you choose this route. For example, any life insurance you get through work is unlikely to be portable, meaning you'll lose coverage if you switch jobs or retire. In addition, most workplace policies offer a death benefit in the $25,000 to $100,000 range, depending on how much you are willing to pay each month. Benefits may cover funeral expenses and a small amount on top of that. But it's not meant to secure your family's financial future after you're gone.
By contrast, a life insurance policy through Allstate Life insurance means you can continue coverage whether you switch jobs or retire. You can also buy the exact amount of life insurance coverage you need rather than an arbitrary number your employer picks. However, insured parties will have to apply for an Allstate partner life insurance policy regardless of the size. There's a risk of being denied based on medical history, lifestyle, etc. Premiums are also higher than a workplace plan.
Methodology
To create this review, we compared Allstate Life insurance policies and coverage options to life insurance policies from a wide range of insurers. We review products on carrier websites to explore riders, exclusions, and more. We also use customer review websites and other online resources. When all this is done, we rank companies based only on the facts we gather.
To find the right life insurance coverage for your needs, you should shop with a licensed insurance agent. Agents can customize a plan with the appropriate riders and limits while evaluating the likelihood of approval. Unfortunately, if you receive a denial from any life insurance company, insurers report it, which increases your chance of being denied again. So while Business Insider offers a comprehensive overview of the life insurance options offered by different companies, an insurance agent can guide you in finding the right life policy for your needs and goals.
FAQs
Can you get Allstate life insurance with no medical exam?
Allstate Life insurance offers term policies to eligible individuals with no medical exam required. However, applicants must answer questions about lifestyle decisions and medical history when applying. No medical exam life insurance policies are issued primarily to young, healthy individuals. Insurance agents can run quotes for a medical exam policy if you don't qualify for a no-exam life insurance policy.
Is Allstate getting out of life insurance?
Allstate does not issue life insurance policies directly. Instead, it offers policies through partners such as Protective Life, Lincoln Financial, and John Hancock.
What kind of life insurance plans does Allstate offer?
Allstate offers term life insurance and permanent life insurance options like whole life, universal life, and universal variable life.
How long does it take for Allstate to pay a life insurance claim?
According to Allstate, the life insurance claims process typically takes about one to two weeks, and beneficiaries receive payment shortly after that.
