Protecting the people and the things that are important to you is an indispensable part of your overall financial planning. One way to lock in financial protection for those who you are about is through life insurance.
The funds from life insurance are received income tax free by beneficiaries, and the funds can be used for mostly any need that the individual(s) sees fit, such as the payoff of massive debts (including a mortgage balance), the payment of everyday living expenses, and/or to ensure that a child or a grandchild will have the money they need for their future college education.
Before committing to purchase life insurance, it is vital to make sure you are going with the right type and amount of protection. It is also essential to review the insurance company that you are planning to purchase the coverage through so that you can ensure that it is secure and steady from a financial standpoint and that it has a good, positive name for paying out its policy holders' claims. One of the insurance companies that meets these criteria is Esurance – an Allstate company.
The History of Esurance Life Insurance
Esurance was initially founded in 1999 – and it is one of the very first companies to offer insurance policies to consumers via the Internet, rather than requiring in person meetings or phone calls with an insurance agent.
Over time, the company has been acquired more than once – first by Folksamerica Holding Company (a subsidiary of While Mountains Insurance Group) in 2000, and then again in 2011 by Allstate.
Esurance is owned by Allstate Insurance Company – which is the oldest publicly held personal lines insurance carrier in the United States. Allstate has more than 80 years of experience in working with policy holders to protect assets, wealth, and other things of importance. Allstate is a Fortune 100 company, and it holds assets that exceed $130 billion. (Allstate is headquartered in Northbrook, Illinois).
While Esurance is part of a large company, this entity of Allstate can offer more of a small company feel – which includes more personalized customer service. Esurance also offers reliable insurance products that are combined with smart, cutting edge tools that can help its policy holders with managing their insurance whenever, wherever, and how ever they wish. The company's primary headquarters is in San Francisco, California.
Esurance Life Insurance Review
Today, Esurance has more than 3,000 associates across the United States, with 17 offices around the country. The company offers its products in 43 of the 50 U.S. states – and to date, the company has more than 5.2 million vehicles insured.
The company participates in a vast amount of consumer advertising, as well as in the sponsorship of sporting and other events. For example, its tagline is “Insurance for the Modern World,” with its primary target being families and professionals who are in the 25 to 49 age group. Just some of the sports teams and events where Esurance can be found as a sponsor include the U.S. Open tennis tournament, as well as with the San Francisco Giants, and the Golden State Warriors. In the spring of 2015, Esurance also announced a multi-year sponsorship with Major League Baseball, where Esurance will be the exclusive auto insurance partner for the MLB.
Esurance prides itself on its customer service – which includes the timely payment of its policy holder claims. The company offers 24 / seven claims service from dedicated reps, and in most cases, it takes ten days or less to settle vehicle damage claims.
Over the years, the company has earned numerous awards and accolades, including:
- PR Daily's Video Awards in 2015
- Bay Area's Healthiest Employers in 2015
- 2015 InformationWeek Elite 100
- NJBIZ Best Places to Work in New Jersey (in 2015)
- J.D. Power award for Highest Customer Satisfaction Among Auto Insurers in California
Insurer Ratings and Better Business Bureau Grade
Due to the company's financial strength and its ability to pay out claims, Esurance has earned high ratings from the insurer rating agencies. This includes the receipt of an A+ from A.M. Best Company.
Allstate, the parent company of Esurance, is rated as an AA- from Standard & Poor's (which is the fourth highest rating out of a total of 22 categories), as an A+ by A.M. Best Company (which is the second largest out of 16 total categories) and as an Aa3 from Moody's Investor Services (which is the fourth highest rating out of a total of 21 possible types).
Also, while Esurance is not an accredited business through the Better Business Bureau (BBB), the BBB has provided Esurance with a grade of A+ – which is on an overall grade scale of A+ to F. In the previous three years, Esurance has wrapped up a total of 362 customer complaints – of which 33 were closed out within the last 12 months.
Of the over-all 362 customer complaints, 197 had to do with problems with the company's products/services. 69 were related to billing/collection issues, 61 regarding advertising/sales issues, 26 were about delivery issues, and regarded guarantee/warranty issues.
Likewise, Allstate has been given the grade of A- from the Better Business Bureau, and this company has closed out a total of 1,519 customer complaints within the past three years (with 138 being closed out within the previous 12 months).
Of these 1,519 complaints, 900 had to do with problems with the company's products and/or services, 320 were related to billing and/or collection issues, 144 were related to delivery issues, 137 had to do with advertising and/or sales issues, and 18 were referred to guarantee / warranty issues.
Life Insurance Coverage Offered Through Esurance
While Esurance is primarily known for offering auto and other types of vehicle insurance coverage, the company also provides the ability for consumers to purchase life insurance. Esurance offers quotes on term life insurance coverage – which provides death benefit only protection, with no cash value or savings build up. Because term life insurance is the purest, a basic form of life insurance coverage can often be quite affordable – especially if the insured is young and in relatively good health at the time of policy application.
With term insurance, as its name suggests, coverage can be purchased for a set time – or term – which can typically be anywhere between one and 30 years (depending on the plan). In most cases, the amount of the term life insurance coverage – as well as the sum of the premium that is due – will remain level during the allotted time frame.
In some cases, a term life insurance policy that is purchased via Esurance can be converted over to a permanent form of life insurance coverage. This can allow the insured to obtain life insurance for the remainder of his or her lifetime (provided that the premiums are paid). It can also provide the ability to build up cash value in the cash component of the insurance policy.
With permanent life insurance, the cash value can grow and compound over time on a tax deferred basis. This means that there is no tax due on the increase in the contract until the money is withdrawn. Funds that are in a permanent life insurance policy's cash value can be either borrowed or removed by the policy holder for any purpose, such as supplementing retirement income, paying off debt (typically higher interest debt such as credit card balances), purchasing a new vehicle, paying for a child or grandchild's college education, or for going on a long-awaited vacation.
While the funds that are borrowed from a permanent life insurance policy do not typically have to be repaid, if they are not, the shortfall – plus interest – will be charged against the amount of the death benefit that is ultimately paid out to the policy's beneficiary. (If the policy is canceled before the insured's death, then the amount of the un-repaid cash value can be considered as a taxable distribution, and then taxed accordingly by the IRS).
Esurance offers its life insurance quotes directly online, which can be very convenient for consumers. The company provides these quotes via Efinancial. The life insurance coverage is not underwritten directly by Esurance, but rather by other insurance carriers in the market place, such as:
- Fidelity Life
- Legal & General of America / Banner William Penn
- North American Company
Because the life insurance that is offered through Esurance is done so by various insurance carriers, the products, rates, and the time that is required to purchase a policy (such as underwriting procedures) can vary from one company to another.
To obtain a quote, a consumer must provide the following information via the Esurance website:
- Date of Birth
- Zip Code
- Primary Phone Number
- Email Address
- The answer to whether they have been treated for any significant medical conditions (and if yes, provide additional details)
- The answer to whether they have used tobacco products within the past 12 months (and if yes, provide further details)
If a consumer finds a policy that they are interested in pursuing, then it is possible to apply directly for this policy on the Esurance website.
Other Products and Services Available
In addition to life insurance coverage, Esurance offers an extensive list of other products and services, including the following:
- Health Insurance
- Pet Insurance
- Cell Phone Insurance
- Home Owners Insurance
- Renters Insurance
- Condo Insurance
- Flood Insurance
- Umbrella Insurance
- Car Insurance
- Motorcycle Insurance
- Boat Insurance
- PWC (Power Water Craft) Insurance
- RV (Recreational Vehicle) Insurance
- Travel Trailer Insurance
- Snowmobile Insurance
- Classic Vehicle Insurance
- Commercial Auto Insurance
- Scooter Insurance
- Segway Insurance
- Golf Cart Insurance
How to Get the Best Life Insurance Premium Rates on Coverage with Esurance
If you are seeking the best life insurance premium rates on coverage through Esurance – or any other provider of life insurance – then it may be to your advantage to work with an independent life insurance agency or brokerage. That way, you can compare, side-by-side, life insurance policies and prices, and from there you can determine which one may be the best for you.
When you are ready to see which life insurance plan(s) you may qualify for – as well as the premium rates – we can help. We are an independent life insurance brokerage, and we work with many of the top life insurance carriers in the industry today. We can offer you this information swiftly, simply, and expediently – all directly from your home computer. We also have experts available who can answer any of the additional questions or concerns regarding life insurance that you may have. If you are ready to proceed, then all you should do is just simply fill out our quote form.
Should you find that you still need any additional information, then please feel free to reach out to us directly via phone to our life insurance experts. We can be called toll-free by dialing 888-836-7071.
We know that the purchase of life insurance may seem a bit overwhelming. There are many variables that you need to consider. However, this process can be made so much easier when you are working with an ally on your side. So, contact us today – we're here to help.