Few companies have as much brand awareness as Allstate, the “good hands company.”
It also is unmatched in the scope of insurance products it offers, making it one of the top life insurance companies providing solutions to the most common insurance needs in American households.
But, is Allstate really the best option for your life insurance?
In this Allstate Life Insurance Company review, we’ll break down the history of the carrier, their products (especially life insurance), and any other unbiased information we can.
Our goal is to help you choose the right company and the best product for you and your family.
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Our Allstate Life Insurance Company Review
Using the Sears name and brand of tires they had marketed since 1925, Allstate Insurance Company was born, with car insurance as its maiden product line.
Growing steadily over the years, Allstate began adding additional lines of insurance, starting with fire insurance in ’54, and home and life insurance just three years later.
Not long after, several more lines of insurance were added to Allstate’s lineup as the company continued its expansion.
Outside of insurance, Allstate tried its hand at selling motor vehicles, fire extinguishers, and even mopeds, none of which took off quite like insurance.
By the early 70s, the company realized what is was most proficient at and made its business model one that solely offered insurance.
Fast forward to 1991, an important year in the company’s history, as it went public with the ticker symbol ALL, under which it is still offered on the New York Stock Exchange, or NYSE.
With its success, Allstate has maintained a strong commitment to ethical business practices and giving back to the communities it serves over the years.
The company is hailed for its military support and diversity in the workplace.
They also have programs promoting youth mentoring and education, safe driving, and advocacy and financial support for victims of domestic abuse.
Financial Strength and Ratings
Allstate Life Insurance Company is a highly rated entity, not by one, but three of the most reputable credit rating agencies.
It has secured an “A+” from A.M. Best, an “A1” from Moody’s, and another “A+” from Standard & Poor’s, distinguishing itself as an excellent company to do business with.
These ratings are also accompanied with a positive outlook. In other words, you’re in good hands entrusting Allstate with your policy as they’re stable enough to pay out your policy.
With close to $125 billion in assets, Allstate is able to employ over 70,000 employees altogether, assisting more than 16 million homes across the nation.
The Better Business Bureau is another indicator of Allstate’s strength, giving the company an “A+” rating for its customer relations, history, and financial practices.
Products
With a better idea of Allstate’s track record in the industry and financial profile, let’s take a look at the products they have to offer, which is quite a long list.
Among their lines of insurance are:
- Auto
- Home
- Renters
- Condo
- Motorcycle
- Business
- Life
- Boat
- Motorhome
- ATV
- Pet
- and more…
We’ll focus our discussion on their life insurance products.
Underneath the life insurance umbrella, Allstate offers four different types of coverage for different occasions.
Term
Allstate’s term life insurance might be the right call for those looking for shorter-term coverage options, with their Truefit® policies.
These policies come in any term length of your choice between 10 to 30 years, like 14 or 27, allowing you to tailor the policy to your exact needs.
Allstate’s term life coverage can also be converted into permanent coverage down the road.
Depending on your risk factors and the amount of coverage you request, you could be able to get a no exam life insurance plan, where the medical is waived.
Universal
Next is Allstate’s slightly more permanent and flexible option, universal coverage.
This option comes with adjustable premiums and the potential for lifelong coverage.
You can also choose between a set interest rate with the Lifetime UL® product and indexed investing.
Variable Universal
Another option offering a tax-free death benefit, lifelong coverage, and a rewarding cash value is variable universal coverage.
For anyone looking to dabble in growing some cash inside their policy as well, these variable universal life products are available through a registered representative.
With Allstate, you can build up your investment portfolio with over 30 funds to choose from for the cash value of your policy.
Whole
Allstate’s Whole Life Advantage® offers permanent guaranteed coverage to policyholders.
Rather than choosing from a series of investment options for your cash value component, it grows on a predetermined schedule, so you have a clear idea of what to expect.
Whole life insurance is typically far more expensive than the other coverage types, and Allstate is no exception.
Pros
What’s not to love about Allstate?
Here are a few of the reasons the company is so respected in the industry:
- Financial strength: When you look beyond the popular commercials to Allstate’s transparent financials, you’ll see that the company is performing strongly and has excellent ratings to back it up.
- Awards: With accolades like Best 100 Companies for Working Mothers, America’s Most Admired Company by Fortune Magazine, a Top 50 pick for Diversity, and awards for innovation and technology, Allstate is ahead of the game and in front of their consumers and clients.
- Product variety: Allstate and its other divisions offer every kind of insurance you could imagine, along with retirement and investment planning advice and products for anyone looking to grow assets for themselves or their businesses.
- Life insurance lineup: Allstate has a wide variety of life insurance products which can meet a range of temporary and lifelong needs.
- No exam: Depending on your health and the type of policy you’re looking for, you may be able to secure no exam coverage here, which usually means quicker underwriting and allows you to avoid the medical exam.
Cons
While Allstate has plenty of admirable qualities, there are a few potential downsides to choosing them as your provider.
Consider the following:
- Agent focus: While you can find some basic information online, Allstate pushes you towards working with one of their agents for quotes and applications. These captive agents will only be concerned with finding you an Allstate policy.
- Underwriting: If you’re in good health, you shouldn’t have trouble getting affordable underwriting from Allstate, but individuals with higher risk factors will.
- No app: Allstate’s website is clean and easy to navigate, but without an app or features on the site, you have to call in to file claims, apply for coverage, or execute any real major actions.
Final Thoughts
With a strong market presence and a history of keeping its promises, its no wonder Allstate continues to use the phrase “In Good Hands.”
If you already have other insurance products with Allstate, adding your life insurance right into the mix can be a simple solution, though you will likely pay slightly higher than other private insurers.
Other no exam life insurance companies will get you more for less; nevertheless, Allstate is a name you can trust for your life insurance needs.
But before you lock into coverage with them or any other provider, take a little time to compare quotes.
You may be surprised at the rates and policies you have access to in just a few clicks.
