Allstate Life Insurance Review

Discounted life insurance for existing Allstate customers

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Allstate

 Allstate

overall rating
4.5

Our Take

Allstate offers term, whole, and variable life insurance, with discounts available for existing Allstate customers. While their term life rates are in line with other insurance agencies, their coverage limits are lower than most of their competitors.

  • Pros and Cons
  • Key Takeaways
  • Specifications
Pros and Cons
Pros
  • Multi-policy discounts for existing Allstate customers

  • Online quotes available for term life policies

  • Mobile app available for iOS and Android

  • Lifetrek tool to help you narrow down life insurance options

Cons
  • Low term benefit limits ($1,000,000 max)

  • Whole and universal policy quotes require talking to an agent

  • No final expense insurance product (a whole life policy may work in lieu)

Key Takeaways
  • Allstate is well-known for its auto and home insurance policies.
  • Allstate offers term, whole, universal, and variable universal life insurance.
  • Allstate insurance products are available in all 50 states.
  • Allstate also offers auto, home, renters, and motorcycle insurance.
Specifications
  • Year Founded 1931
  • Kinds of Plans Term, Whole, Universal, Variable Universal
  • Number of Plans 4
  • Payment Options Monthly, Quarterly, Semi-Annual, Annual
  • Official Website https://www.allstate.com/life-insurance

Introduction

Allstate Life Insurance offers term, whole, universal, and variable universal life insurance with discounts available for existing Allstate customers. We researched Allstate’s financial stability, policy plan options, riders, website tools, and customer service reviews to help you compare the life insurance policy options of Allstate with the competition. 

Company Overview

Founded in 1931 as part of Sears, Roebuck, and Co., Allstate spun off into an independent insurance company in 1993. Allstate was made famous with its prominent TV and radio ads, and the company offers many types of insurance, including auto, home, renters, and life insurance.

Its life insurance products include term, whole, universal, and variable universal life insurance options as well as optional riders. Potential customers can get quotes for term life insurance online, but all other life insurance requires speaking to an agent for pricing details.

Allstate Life Insurance is licensed in all 50 states, but actual availability varies by product and state.

Allstate offers bundling discounts for existing policyholders. If you have auto or homeowners insurance through Allstate currently, ask about their multi-policy discounts.

Available Plans 

Allstate Life Insurance offers four types of life insurance plans including term, whole, universal, and variable universal plans as well as final expense plans. To help customers find the right type of life insurance, Allstate created a tool called Lifetrek, which presents customers with a few simple questions and provides a recommendation based on their answers.

Term Life Insurance

Allstate offers term life insurance that ranges from 10 to 30 years in length. Customers have the option to choose from a preset coverage amount or to fully customize their coverage with varying policy lengths and benefit amounts. Select any amount between $200,000 and $1,000,000 for your benefit amount and any number of years between 10 and 30 for years of coverage.

For example, you might decide to choose a $430,000 coverage amount with a 17-year policy length. Allstate will create a custom policy and pricing for this term.

Their term policies are also flexible, allowing customers to change their coverage in the middle of a term, potentially lowering their bill. It is also a convertible term life policy that can be converted into a whole life policy at the end of the term.

Whole Life Insurance

Allstate’s whole life offering is a permanent life insurance policy that covers the insured for their lifetime. These are level premium policies, meaning the premium paid will never change during the life of the policy. Whole life policies can accumulate cash value at a set interest rate, and this value can be borrowed against or accessed early with optional riders. 

Allstate’s whole life policies also earn excess credits which can be received in cash, accumulated at interest, used to buy additional life insurance, or to help reduce premium payments or pay outstanding loans. 

Quotes are only available by contacting an Allstate agent directly.

Universal Life Insurance

Allstate offers universal life insurance with the ability to expand cash value options for certain policies. They also allow you to increase or decrease the benefits within the policy at any time.

Increasing or decreasing the death benefit amount will raise or lower your premium.

Some of the universal life policies allow customers to earn more interest based on changes in the value of a stock index or indexes. You can also choose a guaranteed rate of return for a steady interest rate over time. Allstate can customize your universal life plan to give you access to both a guaranteed interest rate, as well as the upside of investing in a stock index.

The exact policy details and rates vary by policy and will need to be reviewed directly with an Allstate agent before purchasing.

Variable Universal Life Insurance

Allstate also offers universal life insurance, which gives clients the ability to invest the cash value of the policy in several types of subaccounts. These accounts are similar to mutual funds, fixed accounts, or asset allocation programs, and can be accessed via a loan or withdrawal. 

Partial withdrawals of cash value are taxed as ordinary income. Loans can be taken out tax-free and would only be taxed if repaid with the cash value of the policy.

The cash value portion of the policy can be invested with no caps on earnings, but also an unlimited downside if the subaccounts perform poorly. This means the cash value of your policy may lose value.

Variable universal life policies offer the most flexibility but also the most risk. Quotes for universal life policies require speaking with an agent directly.

Available Riders

A rider is an optional add-on to your life insurance policy that gives you additional coverage or benefits. Allstate offers a wide range of riders for their life insurance policies that allow clients to access their benefits early or cover additional members of their family within their life insurance policy.

Here are a few of their rider options for Allstate Life Insurance:

Disability Waiver of Premium Rider

If you become permanently disabled and are unable to pay your premiums, this rider allows your premiums to be waived. Exact qualifications and terms vary by policy.

Accelerated Benefit—Chronic Illness Rider

Available on some of the Allstate life insurance plans, this rider allows the insured to access up to 80% of the face value of the policy in the event of a chronic illness diagnosis.

Accelerated Benefit—Terminal Illness Rider

If you are diagnosed with a terminal illness with a life expectancy of 12 months (or less), this rider allows you to access up to 80% of the face value of the policy, up to a specified maximum.

Customer Service: 24/7 Support

Allstate Life Insurance offers support over the phone, online, via social media, or in person at one of their local offices. They also have a mobile app to access your account on your mobile device.

Allstate also handles basic customer service questions via Twitter. 

Allstate customer service is available by phone and email 24/7. This is not often offered by other life insurance companies.

Customer Satisfaction: High Marks  

According to the National Association of Insurance Commissioners (NIAC) complaint index, Allstate receives far fewer complaints than the industry average life insurance company. While an average complaint score is 1.0 (the lower, the better), Allstate received a 0.29 score. They have improved over their 2019 score of 0.41, which is still well below the average number of complaints for a company their size.

Allstate was not included in the J.D. Power Life Insurance Study, but as an auto insurer, Allstate ranked top in some regions in J.D. Power’s 2020 US Auto Insurance Study.

Financial Strength: : A+ (Superior)

Allstate is a very strong financial company, and AM Best awarded the company with an A+ (Superior) ranking. Their strong financial position and credit rating gives customer assurance that Allstate will pay out any claims made for life insurance.

Cancellation Policy: More Generous Than Most

Most states require a minimum “free-look” period for insurance policies. While the policy varies by state, the minimum is usually 10 days. Allstate offers a 30-day free look period, which is far higher than most states require. This gives customers the ability to cancel their policy within 30 days of signing up, and receive a full refund of premiums paid.

After the free look period, term life insurance offers no refund of premiums paid but universal and whole life policies may have a surrender value available to customers.

Cancellation terms vary by policy; always clarify the details of the cancellation before signing up for any life insurance policy.

Price of Allstate Life Insurance: Average Prices All-Around

Allstate Life Insurance premiums quotes are only available for the term policies, but they offer sample quotes for each of the four insurance products. Overall, their prices are average compared to other life insurance companies.

Term policies may offer no-exam coverage, but most policies will require a medical exam. Term quotes are based on age answers to their health questionnaire. Premiums can be paid monthly, quarterly, semiannually, or annually.

Sample Allstate Term Life Rates
  Term Life Whole Life Universal Life Variable Universal Life
Coverage Amount $250,000 $250,000 $250,000 Coverage varies
Term Length 20 Years Permanent Permanent Permanent
Monthly Premium $24.64 $144.76 $310.41 Rates vary

Note: Sample rates provided are for a 37-year-old male in excellent health.

How Allstate Life Insurance Compares to Other Life Insurance

Allstate is a giant company that offers many different types of insurance, and its life insurance options offer competitive pricing and coverage. By offering multiple types of insurance as well as optional riders, the company can cover most life insurance needs.

The term life policy flexibility gives an edge over the competition, but the policy premiums are average at best. Here’s how Allstate stacks up against another large auto insurance company that offers life insurance as well.

Allstate Life Insurance vs. State Farm Life Insurance

Both Allstate and State Farm offer a variety of insurance policies, have excellent financial strength and above-average customer service rankings, and are famous for their auto insurance commercials. And, like Allstate, State Farm offers life insurance and gives multi-policy discounts to its existing customers. 

Here are a few key differentiators between Allstate and State Farm:

  • State Farm offers term life insurance with a cash value option.
  • Allstate offers flexible term life insurance, allowing users to choose exact lengths and benefit coverage totals.
  • State Farm offers final expense and survivorship life insurance, while Allstate does not.
  • Allstate life insurance is available in all 50 states, State Farm covers 49 states, but is not available in Massachusetts.

While Allstate offers flexible policies for term life participants, State Farm offers far more life insurance options at nearly unbeatable rates. 

Read our full review of State Farm Life Insurance.

  Allstate Life Insurance State Farm Life Insurance
Market Share Eighth-largest in the U.S., 2.80% Seventh-largest in the U.S., 2.87%
Number of Plans Four  Eight
Online Quotes Yes (term life only) Yes (term life only)
Service Method Email, phone, in-person, social media  Email, phone, in-person, social media
AM Best Rating A+ (Superior)  A++ (Superior)
Complaints Index 0.29 (very good) 0.19 (excellent)
Verdict

Allstate offers average-priced life insurance coverage with lower limits than most insurers. Existing customers do get discounts for holding multiple policies, and Allstate provides excellent customer service according to J.D. Power and the NAIC. 

Allstate is best for existing policyholders who want to keep all their insurance under one roof. With extra discounts and a mobile app to manage your account, Allstate makes it easy to add life insurance coverage.

However, if you are looking for more coverage, or the ability to get instant approval life insurance with no medical exam, you may be better served elsewhere.

Methodology 

All of our reviews of life insurance companies are based on extensive research and analysis of each company based on offerings, customer service, financial stability, cost, and more. For each company, we compared the life insurance products offered, as well as available features, and reported customer experiences. Visit our life insurance review methodology for the full breakdown of what we evaluated for over two dozen companies.