There are some variables that come up when you decide to purchase life insurance. This important product is often a key component of a complete and well-designed financial plan.
This is because the proceeds from a life insurance policy can help to ensure that those you love and care about will be able to go on with their daily living expenses or without the worry of unpaid – and sometimes excessive – debt.
When you are going through all of the factors of building the right life insurance plan, it is certainly key to determining the best type and amount of coverage. But there is yet another criterion that many people don’t always think about in terms of importance. That is the insurance company that they are buying the coverage through.
While there are many companies that offer life insurance coverage, they are not all the same in terms of their financial strength and stability, and their reputation for paying out their policyholder claims. But knowing that the company you’ve gone through has high financial ratings and grades can give you – and your loved ones – the assurance that the proceeds will be paid out in a timely manner if or when the time comes for them to file a policy claim. One insurer that has a very positive reputation for its financial stability and for paying out their claims as promised is Allstate – the good hand’s people.
The History of Allstate Life Insurance Company
For more than 85 years, Allstate Insurance Company has been providing coverage products to the customers that it serves. Over the time that Allstate has been in the insurance industry, this company has developed a strong foothold, due in large part to keeping the promises that it makes to its clients. For many years, Allstate has been known by its slogan, “The good hand’s people.” And, the company does live up to its name. The company is headquartered in Northbrook, Illinois, a suburb of Chicago.
Allstate was originally founded by General Robert E. Wood – who was also at the time the Chairman of Sears, Roebuck, and Company. The initial goal of this insurer was to bring both service and quality to the auto insurance niche. In doing so, the insurer was able to develop its unique auto insurance rate classification system. This provided better vehicle insurance premium rates to those who were considered to be safer drivers.
Over time, Allstate has also make other significant moves to keep the industry in check and to also help as many customers as it could. For example, during the time of World War ll, many men were away serving the country on military leave. Because of that, Allstate Insurance Company began to train women as insurance agents. This was an extremely successful move.
In addition to that, Allstate was also the first insurer to have it insurance agents both live and work in their communities. This bold move, however, had the result of strengthening the bond between agents and their customers.
Over time, Allstate has grown quite a bit from its humble beginnings. The company’s best-in-class products and services help to offer both insurance protection and retirement solutions for over 16 million households across the United States. As of year-end 2015, Allstate had net income of more than $2 billion. The company’s operating income was also more than $2 billion for that same year.
Going forward, the company has several goals, which include to grow insurance policies in force and to deliver unique value propositions to the various segments of the company’s personal lines insurance market. The company also plans to build more meaningful and broader relationships with its customers, as well as its employees and business partners.
In addition to just selling insurance policies, Allstate truly stands behind its products – and its customers. For example, whenever there is a large scale disaster, hundreds of full-time members of the company’s catastrophe response team are ready to join with the Allstate agents and help. Because these individuals are located throughout the United States, they are close by – regardless of where they may be needed.
The company helps in other ways, too. For instance, the Allstate Foundation Purple Purse offers information on how to recognize, talk about, and end financial abuse and domestic violence. This is an issue that currently affects one in four women.
Overall, Allstate Insurance Company is continually innovating – this is done primarily for the good of the company’s customers, whether that means helping them to protect their loved ones, or to simply save a little money.
Allstate Ratings and BBB Grade
Due to its strong financial standing, as well as its commitment to paying out timely policyholder claims, Allstate Insurance Company has secured very high ratings from the insurer ratings agencies. These include the following:
- A+ from A.M. Best. This is the second highest out of a possible 16 categories.
- AA- from Standard & Poor’s. This is the fourth highest out of a possible 22 categories.
- Aa3 from Moody’s Investor Services. This is the fourth highest out of a possible 21 categories.
Allstate Life Insurance, in and of itself, has also secured extremely high ratings, as well, including:
- A+ from A.M. Best
- A+ from Standard & Poor’s
- A1 from Moody’s Investors Services
In addition, even though Allstate Insurance Company is not currently an accredited member of the Better Business Bureau (BBB), this organization has provided Allstate with a grade of A+ (on an overall grade scale of A+ to F).
Over the past three years, Allstate Insurance Company has closed out 1,418 customer complaints through the Better Business Bureau – and of these, 582 have been closed out within the past 12 months.
Of the 1,418 complaints, 711 had to do with problems with the company’s products or services, 253 were in regard to billing or collections, 246 had to do with delivery issues, 194 were concerning the company’s advertising or sales, and 14 were in regards to guarantee or warranty issues.
Life Insurance Products Offered By Allstate
Allstate Life Insurance Company offers a wide range of different types of life insurance protection. This is beneficial for the company’s customers in that they can closely match their coverage needs to the products that are offered.
The company provides both term and permanent life insurance protection – which means that policyholders can also choose between having more affordable coverage with death benefit only protection, or a long-term permanent policy that will also build up tax-deferred cash value over time.
The primary term life insurance options that are offered via Allstate Life Insurance Company include the Basic Term Life Insurance Policy and the TrueFit Term Life Insurance. With the Basic policy, an insured can be protected for 15 years (provided that the premium continues to be paid). During that time, the premium will remain level, as will the amount of the policy’s coverage.
There are several different coverage amount options to be chosen from – including $50,000, $100,000 and $150,000. One of the nice advantages about this particular policy is that the applicant for coverage is not required to undergo a medical examination as a part of the underwriting and approval process. This means that someone who may have certain types of adverse health conditions may still be able to obtain approval. There are, however, some health questions that are asked on the application.
Because there are no major medical exams to contend with, as well as because the insurance underwriters will not have to spend a lot of time reviewing medical tests, this policy can be approved and issued relatively quickly. With that in mind, someone who may need life insurance coverage quickly may want to consider this plan.
With the TrueFit Term Life Insurance, an individual may obtain either 30 years or 10 years of term life coverage. This plan is one that can actually “grow” with the insured in that it offers various layers of protection when they are needed.
In addition, as the insured’s needs change over time, this particular policy may have its premium altered to a lower price. The TrueFit Term Life Insurance policy also offers several different riders that may be added to the policy – helping to truly fit the protection to the need.
Allstate Life Insurance Company also offers permanent life insurance coverage. These policies offer death benefit protection, as well as the ability to build up cash value directly within the policy. The cash that is in the cash value component is allowed to grow and expand on a tax-deferred basis. This means that there will be no taxes due on this growth unless or until it is withdrawn.
There are many different types of permanent life insurance protection in the marketplace. Allstate Life Insurance Company offers both whole life coverage, as well as universal life insurance.
With whole life insurance, the coverage will remain in force throughout the entire lifetime of the insured – as long as the premium is paid. This type of coverage is guaranteed in terms of the death benefit amount, regardless of the insured’s increasing age, and whether or not the insured contracts a health issue – and, the cash value will grow at a set interest rate that is set by the insurance company.
There is also universal life coverage offered by Allstate Life Insurance Company. A universal life, or UL, policy also offers permanent life insurance coverage, as well as a cash value component. However, this coverage is regarded as being more flexible than whole life. This is because the amount of the premium that goes towards the death benefit and the amount that goes towards the cash value may be altered – within certain parameters – by the insured.
Yet another type of life insurance coverage that is offered through Allstate Life Insurance Company is variable life insurance. These policies are also permanent in nature. However, the funds that go into the cash component of the policy will have their return based upon equity vehicles. This can allow the cash to grow considerably in good, upward market conditions. But, in downward market movements, it can be much more risky for the policyholder. these are very common among other insurers like Gerber life and Banner.
Because of the potential risk that may be involved, it is important that an individual carefully assess their risk tolerance, as well as their purpose for the coverage, when considering the purchase of a variable life insurance policy.
Other Coverage Products
Allstate offers a wide variety of other type of life insurance coverage. These include:
- Renter Insurance
- Supplemental and Health
In addition, the company also offers additions products and services, such as retirement planning and investments, as well as roadside assistance.
How to Get the Best Life Insurance Premium Rates
When shopping for the life insurance coverage that will suit your specific needs, it is typically best to work with a company or an agency that has access to more than just one life insurance carrier. Doing so will allow you to directly compare policies, benefits, premiums, and insurance carriers before moving forward with your decision.
If you are in the process of seeking life insurance, we can help. We work with many different life insurance carriers, and we can assist you with finding the one that will be right for you. When you are ready to proceed, just simply filling out the form on this page.