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Life Insurance

What is Life Insurance?

Everyone deserves a secure financial future — and that's why life insurance is so important. Whether you're just starting out or you're getting ready to retire, a life insurance policy can help you give your family financial peace of mind if you are no longer there to provide for them.

What Are the Different Types of Life Insurance?

Whether you'd like to help your family maintain its current lifestyle, pay college costs or leave a legacy for future generations, Allstate has options to fit your needs and budget.

  • Term Life
    Insurance

  • Term Life
    Insurance

  • Low cost
  • Sample Rate
  • $15.09

    per month
    $250,000 of Protective® Classic Choice Term for 20 years. Rate shown is not available in New York.1
  • Quote now

  • Term Life 101
  • Coverage Length
  • 10-40 Years
  • Builds Cash Value3
  • No
  • Permanent Life Insurance

  • Universal Life
    Insurance

  • Flexible protection
  • Sample Rate
  • Rates Vary

  • 800-497-7970

  • Universal Life 101
  • Coverage Length
  • For Life
  • Builds Cash Value
  • Yes
  • Permanent Life Insurance

  • Whole Life
    Insurance

  • Fixed premiums
  • Sample Rate
  • Rates Vary

  • 800-497-7970

  • Whole Life 101
  • Coverage Length
  • For Life
  • Builds Cash Value
  • Yes
  • Permanent Life Insurance

  • Variable Universal
    Life Insurance

  • Investment options
  • Sample Rate
  • Rates Vary2

  • Find an agent

  • Variable Life 101
  • Coverage Length
  • For Life
  • Builds Cash Value
  • Yes


What is term life insurance?

A term life insurance policy offers affordable, straightforward protection that lasts a defined period of time. Term life insurance is often the lowest priced coverage option, but it is temporary. It designed to help replace your income if you pass away during earning years. Your family can use the death benefit to help pay for expenses like housing, childcare and groceries. With term life insurance, you'll have:

  • A tax-free death benefit
    Provides your family stability at the very time they will need it most.
  • Flexible policy lengths
    You can choose a term length between 10 and 40 years.
  • Affordable rates & payments
    Plans start as little as $15.09 per month for 20 years at $250,000.1
    Rate shown is not available in New York
  • Flexibility to convert to permanent insurance
    Switch to longer term protection in the future as provided by policy provisions.

What is universal life insurance?

A universal life insurance policy offers flexible protection that can last up to your lifetime and includes various cash accumulation options. If you want lifelong coverage, but with flexibility down the road, universal life insurance may be a good option. This type of permanent life insurance offers:

  • Death benefit protection
    As long as you pay the sufficient premiums, your protection never ends.
  • Built-in flexibility
    You can increase or decrease your death benefit to meet your changing financial needs so long as sufficient premium is paid to keep the policy in force.4
  • Expanded cash value options for certain policies
    Some universal life policies provide that the cash value can be linked to the broad performance of stock market index funds, but with limits on how much you can gain or lose. Or, you can choose a guaranteed annual return option. It even offers flexibility to have a combination of both.

What is whole life insurance?

A whole life insurance policy offers predictable lifelong protection with the most guarantees, including a fixed premium and death benefit. Whole life policies provide that the amount of life insurance coverage you buy at the start of the policy remains the same throughout your lifetime. The cost is fixed, based on your age when you buy it. And the money paid to your family when you die is generally income tax free. This type of permanent life insurance offers:

  • Death benefit protection
    As long as you make the required payments, you can rest assured that your beneficiaries will receive the death benefit if pass away.
  • Guaranteed cash value
    This policy's savings component allows the cash value to increase regardless of market conditions.
  • The potential to earn dividends
    For participating policies, these earnings can be received in cash, accumulated at interest, used to buy additional life insurance or to help reduce premium payments or pay outstanding loans.

What is variable universal life insurance?

A variable universal life insurance policy typically includes different investment options for your cash value, as well as flexibility in your death benefit. This type of permanent life insurance offers:

  • A wider range of investment options
    Have the freedom to decide where to invest your cash value. Choose subaccounts similar to mutual funds or fixed accounts. This comes with higher growth potential, and increased risk.
  • Full market participation
    No limits on how much cash value you can gain or lose like other universal life products. The value of your policy depends on the market performance of your subaccounts. Your cash value growth is not limited, but like other investments, there is also potential to lose value.

Life Insurance FAQs

Which Life Insurance Policy is Right For Me?

Logo of Life Trek.

To find the policy that is right for you, answer a few quick questions in the LifeTrek tool.

Get Started

How Much Life Insurance Do I Need?

You can calculate roughly how much life insurance you may need by entering your annual income and the number of years your family would need to replace it. For a more detailed estimate, try our coverage calculator.

$0
$200,000
1
40

Total you may need: $500,000

Or for a permanent life insurance quote, call 800-497-7970



How do I apply for life insurance?

Once you've chosen the type and amount of life insurance that works for you, you'll need to take a few more steps to obtain your life insurance policy. Here's what to expect:

Step one  icon

Complete an application

Your health and lifestyle will be used to confirm your cost. The better your results, the better your price.

Step two  icon

Take a free medical exam

Depending on the type of policy you applied for, you may need to take an easy, confidential medical exam.

Step three  icon

Sign and review your policy

We'll finalize your plan based on your application and health exam (if applicable).

Why Do I Need Life Insurance?

A lot can happen throughout your life—and as your world changes, so do your life insurance needs.

Related resources

Policy issuance is subject to availability and qualifications. These policies have exclusions, limitations, and terms that may affect coverage, renewal, cancellation, termination, or other contractual rights and benefits. Rates quoted are subject to change and are set at the company's sole discretion. Terms and limitations apply. See individual product riders for terms, conditions and restrictions. For costs and complete details of coverage, call an Allstate agency.

This life insurance information is provided for general consumer educational purposes and is not intended to provide legal, tax or investment advice. Allstate life insurance issued by Direct General Life Insurance Co., 911 Chestnut Street, Orangeburg SC 29115; Allstate Life Ins. Co. & Allstate Assurance Co., 3075 Sanders Rd, Northbrook IL 60062; American Heritage Life Ins. Co., 1776 American Heritage Life Dr., Jacksonville FL 32224. In New York, life insurance issued through Allstate Life Insurance Company of New York, Hauppauge NY. Life insurance also offered and issued by third party companies not affiliated with Allstate. Each company is solely responsible for the financial obligations accruing under the products it issues. Product guarantees are backed by the financial strength and claims-paying ability of the issuing company.

Securities offered by Personal Financial Representatives through Allstate Financial Services, LLC (LSA Securities in LA and PA). Registered Broker-Dealer. Member FINRA, SIPC. Main Office: 2920 South 84th Street, Lincoln, NE 68506. 877-525-5727. Check the background of this firm on FINRA's BrokerCheck website (https://brokercheck.finra.org).

ECC Monitor: OK