Allstate’s wide range of life insurance offerings are underwritten through three well-known companies that provide excellent customer service.
Allstate Life Insurance Review (2024)
Allstate Life Insurance Company was founded in 1931 and is headquartered in Northbrook, Ill. It is the country’s largest insurer of personal lines, with more than 113 million policies across all 50 states.
It currently sells business, auto insurance and homeowners insurance but no longer sells individual life insurance policies. Allstate completed the sale of its life insurance and annuity businesses in 2021, so it does not make our list of the best life insurance companies.
Allstate Life Insurance Overview
While Allstate no longer sells its own life insurance policies, you can still get life insurance quotes through Allstate for policies underwritten by John Hancock, Lincoln Financial and Protective Life.
Allstate has an A+ financial strength rating from AM Best, but a more accurate way to measure financial strength is by reviewing the grade for each company that partners with Allstate. Fortunately, Protective, John Hancock and Lincoln Financial also all received A+ AM Best ratings*, meaning they are well positioned to pay claims and honor life insurance policy contractual obligations. These ratings should provide peace of mind that the products and services you receive from Allstate will be among the best.
*AM Best ratings are accurate as of July 2023.
Allstate Pros and Cons
Types of Life Insurance Offered
When someone purchases life insurance, they are essentially entering into an agreement with an insurance company. The policyholder is responsible for making regular premium payments, while the insurer is obligated to pay a death benefit to the policyholder’s beneficiaries upon their passing. The exact amount of the premium and the death benefit can differ based on a variety of factors, including the policyholder’s age, gender, health and lifestyle.
Some whole life insurance policies have a cash value in addition to the death benefit value, functioning as a savings or investment account that earns interest and can be borrowed against in certain situations.
When shopping for a life insurance policy, consider these points:
- Choose the type: Term or whole life.
- Identify potential riders to customize the policy for you.
- Determine the amount of coverage and time you need it.
- Ensure competitive quotes are for the same coverage.
- Check each company’s financial health and customer ratings.
Learn more: What Is Life Insurance and How Does It Work?
Term Life Insurance
Term life insurance is a policy that lets a policyholder buy coverage for a specific period, generally between 10 and 30 years. However, Allstate offers policies for up to 40 years in some cases. If the insured person passes away during that period, the insurance company will pay a predetermined amount to the beneficiaries named in the policy. When the policy period ends, the policy is no longer in force. Allstate’s partners’ policies are also convertible to a permanent policy.
Many companies offer term insurance policies. Check out our list of top-rated term life insurance providers.
Allstate offers a limited Basic Term Life policy for 15 years with $50,000, $100,000 or $150,000 coverage levels. No medical exam is required, but you must complete a health questionnaire. Life insurance coverage may be available for up to 40 years in some cases.
The Allstate TrueFit Term Life Insurance policy lets you use a single policy to layer your coverages. Layering means you can match your coverage needs over different time spans in a way that would normally only be possible by purchasing multiple term policies of different lengths and amounts. TrueFit policies can be set at any specific time frame between 10 and 30 years.
You must be at least age 18 to buy a policy, and several riders are available to assist in customizing a policy.
Whole Life Insurance
Whole life insurance is one of several types of permanent life insurance policies that provides coverage for the policyholder’s entire life as long as premiums are kept up to date. Whole life policies also have a cash value component that term policies do not, meaning you can borrow against the premiums you’ve paid into the policy in most cases. Whole life policies are more expensive than term life policies.
Allstate offers a policy option called the Whole Life Advantage. This allows policy holders to return excess credits to the policy, which can cause the policy to build cash value faster.
The Allstate Universal Life (UL) policies are similar to whole life policies in that they can build cash value over time, but the terms and premium payments can be adjusted as needed. The Variable Universal Life policies allow policyholders to invest the cash value in options. That can provide a higher return but also has more financial risk.
An Allstate Indexed Universal Life (IUL) insurance policy is similar to a regular UL policy, except that the cash value grows based on a stock market index, such as the S&P 500. The cash value is not directly invested in the index and won’t lose value due to negative index returns but that also means gains are capped.
Allstate’s Variable Universal Life Insurance is a UL policy that allows you to invest the cash value component directly in the stock market through sub accounts, which are like mutual funds for VUL policies. Unlike an IUL policy, you have direct market exposure, meaning there are no caps on gains or losses.
Allstate Life Insurance Riders
Riders, sometimes called add-ons, are endorsements that add coverage to your policy to let you customize it to meet various needs. Available riders and specific terms will vary depending on the specific provider Allstate directs you toward.
Some possible riders include:
A child term rider adds term coverage for dependent children. Most of these riders cover every dependent child under a certain age. Many offer the option to convert the term coverage to a permanent policy once they become an adult.
A waiver of premium rider lets you pause premium payments in certain circumstances, such as when you become totally disabled and complete a waiting period.
An accidental death benefit rider pays additional amounts to beneficiaries if the insured dies due to an accident. Terms and conditions often apply.
A terminal illness rider is also known as an accelerated death benefit rider. It provides access to part of the death benefit while the insured is still living if diagnosed with a terminal illness leading to death in 12 to 24 months.
A chronic illness rider allows the insured to access a portion of the death benefit before they die if they are diagnosed with a chronic illness that limits their ability to perform at least two activities of daily living.
Cost of Allstate Life Insurance
Life insurance providers offer competitive pricing for policies. Although each company has its own way of determining policy costs, there are several common factors that influence the premium you pay. Some of these include:
- Age
- Coverage amount
- Credit standing
- Gender
- Health and medical history
- Lifestyle
- Policy type
Allstate requires potential applicants to input personal information to get a quote and be directed to their partner providers.
It is always recommended that you work with a financial advisor or licensed insurance agent to comparatively shop the many life insurance plan options to ensure you get the right coverage for you and your loved ones.
Allstate Customer Reviews
The National Association of Insurance Commissioners (NAIC) tracks the number of complaints insurance companies receive compared to their size and market share and the index is used to compare a company’s performance to other companies.
Since Allstate no longer underwrites individual life insurance policies, the best thing to do is check the complaint index for each company Allstate partners with to offer life insurance. Protective, Lincoln Financial and John Hancock each score better than average, which means they have fewer complaints than expected.
Here are some samples of customer reviews for Allstate Life Insurance:
“I have been with Allstate quite a few years. They have always handled my account with knowledge and have always been patient with me. They have answered my questions anytime that I called them .” —Linda J. via Trustpilot
“I have had a critical illness policy since 2012, which I pay on monthly. I developed a rare cancer and sent in a blood panel and initial diagnosis paperwork. I received my expected check quickly. I called customer service several times about this claim and everyone I spoke with was polite and knowledgeable. Great outcome for me.” —Beverly via ConsumerAffairs
“I got an Allstate Hospital policy through my ex-employer. I left my employer and it took 3 months to receive an updated invoice so I can pay my policy. Come to find out my rates went up more than 3x. So I am canceling my policy. I really don’t need it. In addition, it took me almost a year to get the agent that signed me up to send my policies to me.[…]” —Sue via ConsumerAffairs
“My father, 96 years old, died last week during the 30 day grace period after the annual premium was due. He had the same policy and the premium was paid by his former company, Sears, for 40 years until this month. Now Allstate is not replying to simple claim requests from my father’s trust representative. Any death during the grace period is historically paid less the premium amount due that month. That is not happening. A very sad ending to my father’s legacy and an embarrassment to Allstate. 40 years!” —David via ConsumerAffairs
Comparing Allstate Life Insurance with Others
Company | Policies Offered | Good to know |
Allstate Life | Term, universal, whole life and variable universal | Does not currently underwrite individual life insurance policies, but it does offer policies through Protective, John Hancock and Lincoln Financial. Each of these companies has an A+ (Superior) financial strength rating from AM Best and received fewer complaints than competitors over the past three years. |
Fidelity Life | Term and whole life, senior whole life, guaranteed issue and final expense policies. | Offers no-exam coverage and a 30-day free look period. Standard term life policy is only issuable up to age 65. Offers fewer insurance riders than some competitors. |
Lemonade Life | Term life only in coverage amounts of up to $1.5 million to applicants ages 18 to 60. Term lengths range from 10 to 30 years in five-year increments. | Artificial intelligence (AI) technology simplifies the application process. Offers a 30-day “free look” period. Offers no permanent policy options or insurance riders. |
Bestow Life | Term life policies only. Does not offer whole life insurance products. | Quick online applications with no medical exam requirement and same-day coverage for those who qualify. No permanent life insurance options or customizable riders. Coverage is not available in New York. |
The Bottom Line on Allstate Insurance
When buying a life insurance policy from Allstate, remember that you are actually buying a policy from Protective Life, John Hancock or Lincoln Financial. The upside is that all three companies are financially strong and will be able to meet claim obligations. The combined offerings mean that you also have a wide choice of types of policies and riders to choose from to customize the policy you want.
Although you will likely need to work with an insurance agent for most policies rather than doing everything online, this is a minor drawback to an otherwise solid choice to meet your insurance needs. We recommend getting quotes from at least three providers to find the best fit for your needs.
Frequently Asked Questions About Allstate Life Insurance
Go on Allstate’s website or contact them by phone at 1-800-366-1411. New York residents should call 1-800-268-5619. For universal life and whole life quotes, call 1-800-497-7970.
Sometimes in-person medical exams are required, depending on the term or whole life policy you choose.
You can use Allstate’s LifeTrek tool to help identify the level of life insurance protection you need, considering your finances and unique goals. After answering a few questions, it will recommend policies for you.
Employers often offer life insurance policies, but coverage typically only lasts while you’re employed with the company, which puts you at risk if you change or lose your job. The other consideration is that most employees usually need or want more insurance than their employer offers.