Allstate Life Insurance Review

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Allstate is known for the car insurance and homeowners’ insurance policies they sell, but did you know you can also apply for life insurance through Allstate?

In this life insurance review, we outline Allstate its insurance policies to help you determine if Allstate is the right choice for your life insurance needs.  

Does Allstate Still Sell Life Insurance?

Allstate no longer sells its own life insurance policies. The company sold the life insurance and annuities portion of the business to Blackstone Insurance Solutions in 2021, but you can still purchase life insurance through Allstate on behalf of other insurance companies. In fact, Allstate remains the 20th largest issuer of life insurance and sells policies in all 50 states. 

Policies sold by Allstate are underwritten by other leading insurance companies like Lincoln Financial, Protective Life and John Hancock. If you buy a life insurance policy from Allstate, they’ll issue you the policy, and your policy will then be managed by the insurance company underwriting the plan.

What Are the Main Types of Life Insurance?

There are five main types of life insurance:

• Term
• Universal
• Variable universal
• Whole
• Final expense

Allstate offers each type of insurance listed above except for final expense.

You may also purchase an optional accelerated death benefit rider through Allstate that grants access to death benefits upon the diagnosis of a terminal illness or certain chronic conditions. 

What Is Term Life Insurance?

Term life insurance is temporary coverage that typically lasts between 10 and 30 years, although Allstate offers policies of up to 40 years. The idea behind term life insurance is to have protection in place should you pass away during your working years.

The death benefits from a term life insurance policy may then be used to replace your income. Term life insurance is especially useful for primary breadwinners supporting a family. 

The death benefits are tax-free, and Allstate allows you to convert the policy to permanent coverage near the end of its term.  

What Is Whole Life Insurance?

Whole life insurance provides permanent coverage that remains in place for the rest of your life, provided you keep up with your premiums. The premium costs and death benefit amounts remain fixed.

Allstate whole life policies can include a guaranteed cash value with the option to receive dividends. 

What Are Universal and Variable Universal Life Insurance?

Universal and variable universal life insurance are two similar types of whole, or permanent, policies. 

Universal life insurance features cash accumulation options that can be tied to an index fund or a guaranteed annual return. Variable universal life insurance includes investment verticals that are similar to mutual funds. 

What Is Final Expense Life Insurance?

Final expense insurance is like term life insurance but with a much smaller death benefit. These policies can be used to cover funeral costs and other expenses associated with end-of-life care. 

Allstate does not sell final expense life insurance.

How Much Is a Life Insurance Policy From Allstate?

Allstate advertises $250,000 of coverage on a 20-year term life insurance policy for $15.09 per month. Your rate will vary according to age, health and other factors, so the only way to get an accurate idea of your cost will be to connect with a licensed insurance agent who can give you a quote. 

Is Allstate Good at Paying Claims?

Allstate has an A+ rating with the Better Business Bureau and 3.85 stars out of five with Consumer Affairs.

A.M. Best, Fitch Ratings and S&P Global Ratings all give Allstate an A+ for financial security, and Moody’s has rated the company A1. 

How Do I Enroll in Life Insurance?

If you’re ready to compare life insurance plans to find the right policy for you, you can compare plans online before you apply. A licensed insurance agent can also help you review life insurance policies and rates where you live and help you apply for a plan online or over the phone.