Life insurance is one of the most important purchases that you will ever make for your family. It’s one of the only ways that you can ensure they will be protected if anything tragic were to happen to you. With so many different life insurance companies across the United States to choose from, it can be frustrating and overwhelming trying to find the policy that works for you.
You’ve probably come here to get a review of Allstate Term Life Insurance. In this article we’ll cover the pros and cons of buying life insurance with Allstate.
Let’s start out with the benefits of using Allstate.
First, 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 for you 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. For anyone that is in poor health or has any severe health complications, these no medical exams could be the best coverage option.
There are also other types of plans such as AICPA life insurance if this is something you are interested in. 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
- 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. If you’re looking to get the lowest rates, one of the best ways to do this is by comparing quotes from dozens of insurance companies before you find the one that works best for you.
Because there are so many insurance companies on the market like William Penn, you could spend days talking to different companies. Instead of wasting your time calling agents, let us do all of the work for you. Simply fill out the quote form on the side and all of the lowest rates for life insurance will come directly to you.
How Much Life Insurance Should You Buy?
Aside from ensuring that you’re getting the best insurance rates, it’s also vital that you purchase enough coverage for your family. Not having enough life insurance coverage could leave your family with additional bills and expenses that they wouldn’t have the money to cover. Before you apply for any life insurance, regardless of which company that you choose, you should calculate how much insurance protection that you will need. There are a couple key categories that you should add up.
The first number that you should take a look at is all of your debts and major bills, like your mortgage or any business loans. If something tragic were to happen to you, all of those expenses are going directly to your family members. If you didn’t have life insurance, it would be difficult for them to pay off all of those bills without draining their bank account. Make sure that you crunch all of your debts and make sure that your life insurance plan is large enough to coverage all of those expenses.
The next number that you should look at is your annual income. If you’re the main source of money in your home, then your family would have trouble paying for any necessary expenses. The second purpose of your life insurance is to replace your paycheck if you were to pass away.
There is no “one-size-fits-all” policy that is going to work well for everyone. Every family is different, and all of them are going to have different life insurance needs. Most insurance professionals suggest getting around 7 – 10 times your annual income, but they may not be enough depending on your situation.
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, but that’s where your life insurance comes in. Comparatively, this is a small bill, but most families forget to account for it, which could leave them with those bills.
If you have any questions about calculating how much life insurance your family will need if you were to pass away, 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, if you want to save money, it’s time to kick the cigarettes. Being listed as a smoker on your 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.
If you have any questions about Allstate, or any of the dozens of other companies that we represent, we would love to answer those questions and connect you with the best company to meet your needs.
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.