If you want to know more about Allstate’s whole life insurance, you’ve come to the right place to learn about their policies.
Allstate is a well-known insurance provider. The company offers a wide range of insurance products.
You may already have Allstate auto or home insurance. In that case, Allstate life insurance might serve you well.
By bundling your life insurance with your other policies, you can take advantage of the company’s multi-policy discount. In doing so, you could save on your monthly premiums.
Keep reading for an Allstate Whole Life Insurance Review.
Allstate Whole Life Insurance Review
Allstate is most well-known for its commercials asking, “Are you in good hands?” The company is a leading insurance provider. They’re topped ranked for the number of current policies that it maintains.
The company services 16 million households across the nation. They’re the 20th largest life insurance underwriter in the United States.
Still, the company has rated “Better Than Most” with JD Powers in the past. Allstate also has an A+ rating with A.M. Best.
What’s more, Allstate offers a variety of products and services. These products include car insurance, homeowners insurance, and life insurance.
You can purchase Allstate insurance in all 50 states. Furthermore, the company offers multiple policy options.
Insurance policy options are called riders. You can purchase riders to customize your insurance policy.
You can find Allstate home and auto and term life insurance rates online. However, you’ll need to speak to an agent to find out more about their whole life insurance options.
The Origins of Allstate Life Insurance
Allstate has underwritten policies for 90 years. General Robert E. Wood founded the company. Incidentally, he was also a chairman of the Sears Roebuck company at the same time.
The company started to bring service and quality to the auto insurance industry. Eventually, Allstate developed a unique auto insurance rate classification system at the time.
The system offered better rates to safe drivers. Today, discounts for safe driving are standard in the auto insurance industry. Over time, Allstate has led the way in shaping the insurance industry.
Initially, the company sold homeowners and auto insurance policies. However, Allstate added life insurance to its lineup in 1957. The company incorporated the “good hands” slogan a few years later.
Today, the Allstate life insurance company offers term, whole life, universal life, and variable universal life insurance policies.
Types of Life Insurance
Again, Allstate offers multiple insurance plans. For example, the company’s life insurance plans include term protection and permanent life insurance.
Most Allstate life insurance policy applicants must undergo a medical exam. Once you’ve completed the exam, you’ll receive a personalized wellness report.
Allstate offers more life insurance options than most companies. The following is a brief overview of Allstate’s term, whole, universal, and variable universal life policies.
As with most companies, Allstate term life insurance is the most affordable option. Term life insurance is a form of temporary coverage. It’s designed to help families cover living expenses if the policyholder passes away.
A term insurance policy is active for a predetermined time. For example, Allstate’s term life insurance policy plans range from 10 to 30 years.
An Allstate term life insurance policy starts at $24.64 a month. The amount of coverage is $250,000 for 20 years.
Allstate’s whole life insurance product differs from term life. Whole life insurance provides long-term coverage. It protects you for your entire lifetime.
The cost of a whole life insurance policy is fixed. It will never change over time.
You can also use whole life insurance to build cash value. You can use this kind of policy to grow your savings over time. However, you must claim your earnings on your income tax in some instances.
In Allstate whole life policy starts at $136.68 a month. It provides $100,000 of coverage.
Allstate universal life insurance provides permanent protection. However, it’s a bit more flexible than its whole life insurance.
Over time, your needs may change. With universal life insurance, you can increase or decrease the death benefit as needed.
You can even link some Allstate life insurance policies to a stock market index like the S&P 500. This feature can help you to grow the cash value of your policy.
Allstate universal life insurance policies start at $79.69 per month. The amount of coverage is $100,000.
Variable Universal Life
Allstate’s variable universal life policy is similar to its universal life policies. However, it also offers permanent coverage.
However, the variable universal life policy offers an additional savings component. You can invest the cash value of this policy into subaccounts.
The subaccounts are similar to mutual funds, fixed accounts, or asset allocation programs. These kinds of accounts have higher growth potential. However, they also present a higher risk.
Available Insurance Riders
Like most insurers, Allstate allows you to add riders to your policy. Riders usually cost extra.
Nevertheless, they’re instrumental in allowing you to customize your policy. They also allow you to add different kinds of coverage.
For example, Allstate’s riders allow you to access part of your life insurance death benefits early. However, a physician must diagnose you with a qualifying condition for you to access benefits.
The following is a closer look at Allstate insurance riders.
Accelerated Care Rider
The Allstate Accelerated Care Rider is available with select policies. It provides for early or accelerated payment of a life insurance policy benefit.
When you add this rider to your Allstate policy, you can access 100% of the value of your insurance policy. A physician must diagnose you with a chronically ill condition for you to access the benefit.
You must have a permanent cognitive impairment to qualify for the rider. Alternatively, your impairment must make you unable to perform two activities of daily living.
These activities include specific tasks for Allstate insurance. These tasks may include:
If you have problems in two or more of these areas, you’ll qualify to access your death benefits via the Allstate Accelerated Care Rider.
Accelerated Death Benefit and Chronic Illness Rider
The Accelerated Death Benefit and Chronic Illness Rider is another add-on that will allow you to access your life insurance benefit if needed. It will pay out up to 80% of your death benefit if a physician diagnoses you with a chronic illness. The maximum payout for the benefit is $1 million.
If a policyholder becomes chronically ill, they can use up to 25% of the maximum lifetime benefit and up to $250,000 each year.
Allstate will pay out whichever amount is lower. You can continue to collect the benefit until you reach the specified limit of $1 million.
Accelerated Death Benefit and Terminal Illness Rider
You can also purchase an add-on Accelerated Death Benefit and Terminal Illness Rider from Allstate. The rider covers you if a physician diagnoses you with a terminal illness. A physician must diagnose you with a life expectancy of 12 months or less to qualify for the payout of this benefit.
If you’re diagnosed with a chronic illness, Allstate will allow you to access up to 80% of your death benefit. The rider pays out a maximum benefit of $250,000. You can use the payout to cover medical care or other expenses.
2020 was a disruptive year for many people. The pandemic brought many industries to a near standstill—and some to a grinding halt. Nevertheless, Allstate continued to deliver on its promise to care for its policyholders throughout the year.
In 2020, the Allstate life insurance company returned $668 million in dividends to its shareholders. The insurance company also brought back $1.7 billion in shares.
The company’s adjusted net income for 2020 was $4.65 billion. That amount is up almost $1 billion over the previous year.
Meanwhile, Allstate’s adjusted net income return on common equity was 19.8% in 2020. As a result, the company made another gain, performing around 3% better than the previous year.
Finally, Allstate’s adjusted net income per common share was $14.73 for 2020. That amount is up from $10.43 in 2019 and $8.86 in 2018.
The Pros and Cons of Allstate Insurance
One of the most significant benefits of purchasing life insurance from Allstate is that you can bundle their other policies, such as auto and homeowners insurance. This tactic is a great way to receive valuable discounts on your premium payment. Still, there are a few more benefits to choosing Allstate, along with a few drawbacks.
The Benefits of Allstate
Firstly, Allstate offers a 30-day guarantee for its life insurance products. Most insurers only offer a 10-day trial period.
If you’re not satisfied with your Allstate life insurance policy, you can cancel it. Allstate will provide you with a full refund of all your paid premiums.
The company also offers plenty of educational tools. For example, Allstate educational tools can help you learn more about life insurance.
In turn, you can make better-informed decisions when purchasing the company’s policies. These tools include educational articles and insurance calculators.
The Drawbacks of Allstate
On the other hand, many companies offer guaranteed issue life insurance. However, Allstate doesn’t offer guaranteed issue policies.
An insurer cannot deny you coverage with a guaranteed issue life insurance policy. So no matter your health history, you can qualify for this kind of policy.
Accordingly, guaranteed issue life insurance policies are highly beneficial for people with existing health conditions. Unfortunately, however, Allstate does not provide this kind of product.
Also, you can’t access online quotes for whole or universal life insurance. However, the company does allow you to access online quotes for term life insurance policies in most states.
If you want more information about an Allstate whole or universal life policy, you’ll need to work directly with an Allstate agent.
Finally, Allstate offers limited coverage amounts. The payouts that the company provides are relatively low.
As a result, Allstate may not have a good plan to cover all families. For instance, the maximum payout of a term life policy is $500,000. Other companies, however, offer payouts of $1 million or higher.
Over the years, Allstate has earned a good reputation. So if you’re looking for home or auto insurance, Allstate is a great company.
There Are Better Options for Life Insurance
If you’re looking for life insurance, Allstate may only serve you well if you’re looking for a simplified policy. However, some people’s needs are better served by more comprehensive whole life coverage. Resultantly, you might want to see better options to meet your needs compared to Allstate life insurance.
For example, Top Whole Life can help you find the best policy for your needs among other great whole life insurance providers. These providers include:
• New York Life Company of New York
• Ohio National
An experienced and trustworthy Top Whole Life insurance agent can provide you with a personalized quote.
Find the Right Insurance for Your Needs Quickly
Hopefully, our Allstate Whole Life insurance review will provide you with the information you need to make an informed decision. You’ve also learned that an expert Top Whole Life insurance agent can help you quickly define the coverage you need.
At Top Whole Life, we specialize in instant whole life quotes. We’ll instantly help you find the best whole life insurance for your specific needs. Furthermore, we’ll provide you with all the information that you need to make an informed whole life insurance buying decision.
We make it easy to find the best-performing whole life insurance policy. What’s more, you can compare the offerings of various insurance providers in seconds.
Contact Top Whole Life at (855) 946-5353 or connect with us online for a free instant quote.