Allstate has been in business for many years and they are a financially sound company. In fact, A.M Best, which is the insurance industry’s main rating agency, gives Allstate an A+ rating. They are one of the most well-known insurance companies in the United States.
Doing business with Allstate can also be convenient, as you may already have home and auto coverage with them, and even a local office in your area. Having all of your insurance policies at one company is not only convenient for managing them, but it could also save you money. Most insurance companies offer discounts for customers that bundle all of their polices together.
However, Allstate may not be the best choice when it comes to term life insurance and there are a few reasons for that. First, Allstate doesn’t have the best rates. As you can see in our list below, we compared Allstate with other companies, and in our example there were at least 8 other carriers with better rates.
Besides rates, Allstate is also conservative in the way they underwrite life insurance policies. What does that mean? It means that if you have high cholesterol, diabetes, or another pre-existing condition, Allstate may either approve you are very high rates, or decline you for coverage. However, there are companies who offer life insurance with no physical exam, that could be a better fit for your needs. These policies are exactly what they sound like, a life insurance coverage plan without having to undergo the medical exam that traditional policies have. No medical exam policies are frequently the best option for anyone who cannot get through the underwriting process or is afraid of taking the medical exam.
When it comes to pre-existing conditions it doesn’t make sense to use Allstate. If you are in very good health, you will likely get approved with Allstate and will pay rates that are slightly higher than other providers. One of the reasons that you could want to go with Allstate is because you’re also looking for auto insurance or homeowner’s insurance. If you want the convenience of holding all of your policies at one company, or want the discount of multi-policies, Allstate could be an interesting option.
Allstate Term Rates
If a 30 year old male has a Preferred Plus Non Tobacco Rating, a 20 year $500,000 term life insurance policy would cost him $34 a month. You will notice that some rates are 60% less expensive than Allstate. Some of the other prices for the same policy include:
- SBLI: $20
- Protective Life: $21
- Banner Life: $21
- Genworth: $21
- American General: $22
- ING $22
- Transamerica: $23
- MetLife $26
- William Penn $27
- Allstate $34
These are just sample quotes that you could receive, but depending on your age, health, tobacco usage, and where you live, you could receive drastically different quotes. As you can see from the sample quotes, each company could give you drastically different rates, even for the same coverage.
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How Much Life Insurance Should You Buy?
For many people getting an idea of the death benefit you need can be as simple as multiplying your annual income by 10. If you are not sure if that rough number is right for your needs, a more nuanced approach would be to look at the specifics of your families situation.
Any shared debts should be the first and primary concern when choosing your life insurance coverage amount. If you do not want money from your estate to be forced to cover these debts, then you will want a policy that wipes them all out. Also, if your spouse or family cannot afford to pay on large debts like your mortgage, you will want to have a large enough death benefit to make sure they can keep the house, were something to happen to you.
Another factor that you should consider before purchasing insurance coverage is your funeral expenses or any final bills. The average burial can cost around $10,000, which can be difficult for a grieving family to cover. When compared to a mortgage or car note, this is a small bill, but most families forget to account for it, which could leave them with those bills.
Finally, if your beneficiaries are dependent on your income you want to think about what it will cost to replace that income, so that they are not left with desperate options upon your death.
Every family is different, and will have different life insurance needs. Most financial gurus will suggest the 10x your income number, but they may not be enough depending on your situation.
If you have any questions about calculating how much life insurance your family will need, please contact us. We can walk you through all of the calculations and help you determine how much cover that they will need.
Getting Lower Life Insurance Premiums
As we mentioned earlier, bundling your policies at one company is one way that you can save money every month on your life insurance policy, but it’s not the only way. There are several ways that you can get lower insurance premiums. As we mentioned, Allstate is conservative when giving rates to anyone that is in poor health or poses more risk to the company, this is why it’s vital to improve your health to save money.
Starting a healthy diet and regular exercise program can work wonders on your health as well as your insurance premiums. Being overweight increases your risk for severe health complications like cardiovascular conditions, which means you’re a riskier applicant. The insurance company is going to protect themselves from the risk by issuing higher monthly rates. Getting rid of that extra weight you’ve been meaning to lose is not only great for your health but also for your bank account.
Similarly, stopping your smoking habit can save you a lot of money on your premiums each year. Qualifying under a smokers insurance policy is going to cause your rates to double or triple in some cases. Unless you want to spend hundreds of extra dollars on your insurance coverage, it’s time that you quit your bad habits once and for all.
As we mentioned earlier, the best way to get the lowest rates is by comparing dozens of companies. If you’re ready to start the search for the perfect life insurance policy, simply fill out the quote form with your information and we can help you find the policy that fits your needs. The purpose of our review here is not to say that Allstate isn’t a quality company. The purpose is to show you that you can benefit from comparing quotes and that simply shopping with just one company will likely result in you having to pay more than you should.
As an independent life insurance agency, BestLifeQuote.com can help you shop for term life insurance among over 30 companies. Use our quote tool on this page or call us at 1-888-552-6159 to compare rates and apply for life insurance.