American Heritage Life Insurance was purchased by Allstate in 1999 and offers group and voluntary employee benefits under the name “Allstate Benefits.” American Heritage Life Insurance also offers a variety of insurance options such as disability, accident, cancer, critical illness, and health insurance. American Heritage Life Insurance is best for employees who are looking for supplemental life insurance through their employer but you may be better off comparing costs from other top-rated life insurance companies.
- Pros and Cons
- Key Takeaways
Premiums paid directly from paychecks using pre-tax dollars
Employer may choose to cover a portion of the premium costs
Multiple types of supplement insurance available
Most policies are portable
Coverage amounts may be limited
Policies not available in New York
Prices of policies not available online
- American Heritage Life Insurance offers group and voluntary life insurance coverage through employers.
- It is licensed to sell insurance in 49 states.
- While policies vary by employer, American Heritage Life Insurance offers term, whole, and universal life insurance policies.
- American Heritage Life Insurance is a subsidiary of Allstate, which is one of the top insurance companies in the U.S. (by market share).
- Year Founded 1956
- Kinds of Plans Term, whole, universal
- Number of Plans 3
- Payment Options Payroll deduction, monthly
- Official Website https://www.allstatebenefits.com/
American Heritage Life Insurance is an employee benefits insurance company that focuses on providing life and supplemental insurance. We researched American Heritage Life Insurance’s financial stability, policy plan options, riders, website tools, and customer service reviews to help you compare the life insurance policy options of American Heritage Life Insurance with the competition.
American Heritage Life Insurance was founded in 1956 in Jacksonville, Florida, offering life and supplement insurance benefits to employers. In 1999, it was acquired by Allstate and re-branded to “Allstate Benefits” to become Allstate’s employer benefits arm. Though the name has changed for marketing purposes, American Heritage Life Insurance still underwrites policies under its original name.
American Heritage Life Insurance offers group and voluntary life insurance to employees as an elective benefit, with premiums paid directly through employer payroll as a paycheck deduction. Group policy premiums may be partially covered by employers, while voluntary benefits are paid by employees through payroll deductions.
American Heritage Life Insurance is licensed for business in all states except for New York.
American Heritage Life Insurance life insurance policies may offer a portability option, allowing employees to keep their coverage, even when they leave the company.
American Heritage Life Insurance offers three types of life insurance: term, whole life, and universal. These policies can be customized with optional riders, but coverage amounts and optional policies are determined by the employer. Details of these policies are not available online and will vary by employer and employer benefits selected.
Here are some of the basics of term, whole, and universal life policies that may be offered by American Heritage Life Insurance.
Term Life Insurance
Term life insurance is a type of temporary life insurance coverage that offers a death benefit to the insured should they die while the policy is in force. Policies typically come in term lengths of 10-30 years, with coverage ranging from $100,000 to over $1 million.
Term policies are considered the low-cost option for life insurance coverage as they only cover the insured for a specific amount of time, and they typically do not accrue cash value.
Whole Life Insurance
Whole life policies are a type of permanent life insurance that covers you for your entire life and issues a payout upon death, assuming your premiums are paid up. These policies can also build cash value that may earn interest and can be borrowed against on a tax-free basis.
Whole life policies are typically more expensive than term policies, as they don’t have an expiration, and the additional premiums accrue cash value.
Universal Life Insurance
Universal life insurance is a type of permanent life insurance that covers the insured for their lifetime, as well as allows the flexibility of adjusting the premiums and death benefit mid-policy. Universal life also has a savings component, allowing premiums to build cash value over time, and in some policies, the cash value can be invested for growth, tracking stock market funds (such as the S&P 500 index fund).
The cash value can be borrowed against or withdrawn early (with optional riders).
While American Heritage Life Insurance offers riders on its life insurance policies, information about the riders and costs are not available online. Customers may need to speak with their employee benefits department for more details about policy riders or contact American Heritage Life Insurance directly.
In addition to riders, American Heritage Life Insurance offers other insurance products (through Allstate Benefits) including:
Accident insurance pays a cash benefit for a covered accident or injury and is designed to help pay for expenses not covered by traditional insurance.
This coverage pays out a lump sum amount if the insured is diagnosed with a critical illness (check with your employer benefits department for a list of covered illnesses). This helps clients focus on recovery, and offsets the cost of missed work and other income.
Cancer insurance can help offset medical costs and out-of-pocket expenses from a cancer diagnosis. This insurance can help pay for hospitalization, surgery, radiation/chemotherapy, and other associated costs.
American Heritage Life Insurance offers disability coverage to replace a portion of the insured’s income when disabled. This coverage pays a monthly cash benefit for covered sickness, total disability, partial disability, even a disability from donating an organ.
Supplemental Health Insurance
This policy offers extra coverage to help pay for hospital procedures and stays that are not fully covered by traditional medical insurance. This insurance pays a cash benefit that can be used for out-of-pocket expenses such as copays, deductibles, and treatment.
Customer Service: Basic Support
American Heritage Life Insurance offers support over the phone, via email, standard mail, or fax. As an employee benefit, many customer service questions will be directed to your workplace benefits department.
American Heritage Life Insurance customer service is available by phone from Monday through Friday, 8:00 a.m.-8:00 p.m. ET by calling 1-800-521-3535.
Customer Satisfaction: About Average
American Heritage Life Insurance receives an average number of complaints for a life insurance company its size, according to the NAIC Complaint Index. An average complaint score is 1.0 (the lower, the better), and American Heritage Life Insurance received a 1.10 score. It has improved over the 2019 score of 1.47, and the 2018 score of 1.56, which shows improvement in customer service over time.
American Heritage Life Insurance (or its parent company, Allstate) was not included in the 2020 J.D. Power Life Insurance Study.
Financial Strength: A+ (Superior)
American Heritage Life Insurance has an A+ (Superior) rating from AM Best. This rating is based on its very strong balance sheet, as well as strong operating performance, favorable business profile, and very strong enterprise risk management. This high rating gives customers the assurance that their life insurance claims will be covered and paid by American Heritage Life Insurance.
Cancellation Policy: Depends on Employer Policy
U.S. states require a minimum free-look period for insurance policies, and American Heritage Life Insurance is held to this same standard. This is usually a 10-day period that allows customers to sign up for a policy, and cancel to receive a full refund of premiums paid.
Since American Heritage Life Insurance offers life insurance policies directly through employers, the cancellation policy may depend on your state and employer.
Once the free-look period has ended, term life insurance policies can typically be canceled (without a refund of premiums paid), but whole and universal life policies that have accrued cash value may have a surrender value available. Check with your employee benefits department for exact details on American Heritage Life Insurance cancellation policies.
Price of American Heritage Life Insurance: Varies By Employer
American Heritage Life Insurance quotes are not available online, and premiums may be partially covered by your employer. Prices vary by policy, coverage, and term lengths selected as well as employer-negotiated pricing.
How American Heritage Life Insurance Compares to Other Life Insurance
American Heritage Life Insurance is owned by Allstate and offers life insurance policies as an employee benefit. All of its policies are available as paycheck deductions and premiums are paid with pre-tax dollars.
It offers term, whole, and universal policies (with optional riders), but prices and coverage vary by employer. Here’s how American Heritage Life Insurance compares to another well-known workplace insurance company.
American Heritage Life Insurance vs. Colonial Life Insurance
American Heritage Life Insurance and Colonial Life Insurance both offer group and voluntary life insurance for employers. They both offer term and whole life policies, as well as supplemental insurance. While Colonial Life Insurance is owned by a European holding company (Unum), American Heritage Life Insurance is owned by U.S. insurer Allstate.
Here’s how American Heritage Life Insurance and Colonial Life Insurance differ:
- American Heritage Life Insurance offers universal life policies, while Colonial does not.
- Colonial Life Insurance offers dental and vision insurance plans.
- American Heritage Life Insurance operates under the marketing name “Allstate Benefits,” though policies are underwritten under its original name.
- Colonial Life Insurance is licensed in all 50 states, while American Heritage is licensed in 49.
American Heritage Life Insurance gives a wider range of insurance coverage options (including universal policies), while Colonial Life Insurance offers more overall employee benefits. While most employers typically work with one insurance provider, if you have a choice between multiple insurers, make sure to review the policies and coverage available at each to choose which one fits your needs best.
Read our full Colonial Life Insurance review.
|American Heritage Life Insurance||Colonial Life Insurance|
|Market Share||N/A||Sixth-largest in the U.S. by in-force premiums (UNUM, parent company)|
|Number of Plans||3||2|
|Online Quotes Available?||No||No|
|Service Method||Email, phone||Email, phone, social media|
|AM Best Rating||A+ (Superior)||A (Excellent)|
|Complaints Index||1.10 (average)||0.55 (very good)|
American Heritage Life Insurance offers a decent package of employee-life and supplemental insurance plans, with the ability to customize them to fit your needs. Most policies are portable as well, allowing you to continue coverage even if you leave your job. While employer-sponsored life insurance may help you save on taxes (paying premiums directly from your paycheck), the policy coverage and terms may be limited, depending on your employer-selected benefits.
If you are looking for supplemental life insurance coverage from your employer, American Heritage Life Insurance may be a good option. However, if you want more flexible coverage options and the ability to compare prices, you may want to find life insurance outside your employer, and compare life insurance rates from top-rated companies before signing up for a policy.
All of our reviews of life insurance companies are based on extensive research and analysis of each company’s 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.