They say that there are only two certainties in life: death and taxes. While we may not like to think about it, purchasing Allstate life insurance can be a good way to prepare for one of these certainties.
Life insurance is essential if you want to make sure your loved ones are well provided for when you’re gone. Unfortunately, due to financial constraints, just under half of middle-income Americans actually have life insurance.
This review of Allstate life insurance will help you determine whether their policy will meet your family’s needs. If you’re one of the many Americans with little or no life insurance, and you aren’t sure where to start with seeking coverage, you’ve come to the right place.
Allstate is one of the largest insurance companies in America, comprising around 5% of the market share. Most people are familiar with Allstate’s tagline, “You’re in good hands.” They may wonder, however, whether this is really true when it comes to the reliability of their insurance policies.
There are three firms that evaluate the financial strength of various insurance companies: A.M. Best, Standard & Poor’s, and Moody’s Investors Service. Each of these firms has ranked Allstate life insurance in its 5th highest category or higher. In other words, they deem Allstate to have strong financial stability.
Because of the very nature of insurance, financial stability is important when choosing a policy. A company with strong financial standing will be more likely to have the available the funds to pay out claims. Less stable companies may offer insurance, but be unable to afford to cover expensive claims.
What Allstate Offers
While it is good to know that an insurance company is financially solvent, it’s also important to know what services and options they provide. If the company does not have the coverage you need, it does not matter how stable they are.
Let’s take a closer look at the coverage available with Allstate life insurance, and which policy might be the right one for you.
Basic Term Life Insurance
Basic term life insurance is a policy that provides coverage for a specified period of time. “Term” refers the number of years the policy covers. Allstate offers basic term life insurance in terms of 10, 20, and 30 years.
Term life insurance is typically the most affordable option, albeit a non-permanent one. That said, once the term expires, your policy can be renewed for either the same term or a different one. Additionally, you can choose to convert term life insurance to whole life insurance, though this will increase your premiums.
Additionally, if you choose a term Allstate life insurance policy with $150,000 or less of coverage, you can qualify for a no medical exam option. Life insurance policies that require a medical exam will look at things like blood pressure, cholesterol, and glucose levels to determine your risk. If you have any abnormal readings, they may charge you more for your insurance.
Whole Life Insurance
Unlike term life insurance, whole life insurance covers you for your entire life. While you will need a medical exam to get this coverage, there are several benefits to consider.
With Allstate, your premiums for whole life insurance will stay the same throughout your life. So, even as you age, you will not see your premiums skyrocket.
Additionally, your life insurance will accrue a cash value over the course of your life. Once this value builds, you can access this cash for expenses like a down payment on a home, or retirement costs. Unlike other kinds of life insurance, you can actually reap the benefits of whole life insurance while you are alive.
Universal Life Insurance
Like whole life insurance, Allstate’s universal life insurance also provides coverage for your whole life. The difference is that the terms of a universal life insurance policy are more flexible.
As with whole life insurance, your universal life insurance plan can accumulate a cash value that you can tap into. But you will also have the option to change your coverage options throughout the duration of your policy. This way, if circumstances change, you can adjust your coverage.
Benefits of Choosing Allstate Life Insurance
Because Allstate is such a large insurance company, they offer many other types of insurance. These include homeowner’s insurance and motor vehicle insurance commonly referred to as property and casualty coverage.
So, if you already have another policy with Allstate, they may offer a discount if you choose to add another policy, like life insurance. You will also be able to work with the same broker, which can help you streamline your communications. In some cases, you can even combine your payments with other policies you have, making it easier to manage your payments.
NOTE: Top Quote Life Insurance does not offer Allstate Insurance as they are not an independent life insurance company. We have proven on several occasions that shopping your life insurance coverage outside of your home and auto insurance can result in much greater savings than the discounts they can offer.
Drawbacks of Choosing Allstate Life Insurance
One of the biggest drawbacks of choosing a life insurance policy through Allstate is cost. Even with the discount for having your car and home insurance with the same company, Allstate’s monthly premiums are often much higher than those of independent life insurance companies.
For this reason, it’s always important to comparison shop.
Of course, keep in mind that you do get what you pay for. When it comes to insurance, cheaper is not always better. Make sure the plan you choose provides the coverage you need in the amount you need so your family will be taken care of.
Learn More About Life Insurance
With this guide, you will be better understand what is covered by Allstate life insurance. This will help you decide whether their one of their plans is the right one for you.
If you still have more questions about life insurance, contact us. We will work with you to find the right coverage for your unique situation.