Back to top

Life Insurance Plans

Make Life Insurance Part Of Your Financial Plan.

Life insurance can offer more than just protection for you and your family. Different types of permanent life insurance can help you potentially earn money for your future. Incorporating life insurance into your long-term financial plan may be especially beneficial if you have dependents who may not be able to support themselves after your death or if you will have to pay estate taxes.

An Allstate personal financial representative can answer any questions you have and help you understand the types of life insurance options that can help you in the future:

Whole Life Insurance

Whole life insurance is the simplest type of permanent life insurance. In addition to providing financial protection for your family after your death, whole life insurance offers a cash value component. This means a portion of your premium is placed in an account, known as your policy's cash value. A few key features of whole life insurance include:

  • Cash value guaranteed to increase regardless of market conditions
  • Coverage and premiums guaranteed to stay the same
  • The option to build additional cash accumulation with a feature called "excess credits"—with Whole Life Advantage

Universal Life Insurance

Universal life insurance provides financial protection for your family after your death and accumulates a cash value over your lifetime. A universal life insurance policy's cash value can also earn interest. You can decrease your universal life insurance plan and payments as your needs change. With underwriting approval, you can also increase your plan coverage. Universal life insurance features include:

  • Cash value accumulates tax-deferred
  • Cash value earns interest
  • Plan and premium payments are flexible

Variable Universal Life Insurance

Variable universal life insurance offers protection for your family after your death and often provides options to guarantee your coverage won't lapse. It also has a cash value that grows over time. The cash value of your policy will vary based on the performance of your chosen options. Take a look at the key features of variable universal life insurance:

  • Cash value accumulates tax-deferred
  • Cash value can be invested
  • The risk can be higher, but the reward can also be higher

Talk to an Allstate personal financial representative for help understanding how different types of permanent life insurance can help your financial plan.

Partial withdrawals and surrenders from life policies are generally taxed as ordinary income to the extent the withdrawal exceeds your investment in the contract, which is also called the "basis." In some situations, partial withdrawals during the first 15 policy years may result in taxable income prior to recovery of the investment in the contract. Loans are generally not taxable if taken from a life insurance policy that is not a modified endowment contract (MED). However, when cash values are used to repay a loan, the transaction is treated like a withdrawal and taxed accordingly. Unpaid interest on loans is added to the loan principal, thereby increasing the total debt on the policy. The combination of an increasing loan balance and deductions for contract charges and fees may cause the policy to lapse, triggering ordinary income tax on the outstanding loan balance to the extent it exceeds the cost basis in the policy. Loans, if not repaid, and withdrawals reduce the policy's death benefit and cash surrender value.

The death benefit of life insurance policies that were transferred for value may be subject to ordinary income taxes. Estate taxes may apply. Consult your tax advisor for additional information.

Important information about variable universal life insurance: Since cash value depends on the performance of the subaccounts you choose, there is potential for losing cash value, which could cause your policy to lapse.

Allstate Whole Life Advantage is a whole life insurance policy issued by Allstate Life Insurance Company, Home Office: Northbrook, IL. Allstate Whole Life Advantage is available in most states with series LU11040 or form ICC12A1 and may be accompanied by the following riders: Primary Insured Term (LU11045 Series/Form ICC12A6), Additional Insured Term (LU11043 Series/Form ICC12A4), Paid-Up Insurance (LU11041 Series/Form ICC12A2), Children's Level Term(LU11042 Series/Form ICC12A3), Waiver of Premium (LU11051 Series/Form ICC12A11), Guaranteed Insurability (LU11044 Series/Form ICC12A5), Accelerated Benefit for Terminal Illness (LU11048 Series/Form ICC12A9), and Accelerated Benefit for Chronic Illness (LU11046 Series/Form ICC12A7). Not available/not for use in New York.

Variable universal life insurance policies carry annual insurance company mortality and expense risk charges, withdrawal charges in the early years, and administrative fees. Individual features may be offered at an additional cost. The value of a variable universal life insurance policy will fluctuate with the investment performance of the underlying subaccounts and may be worth more or less than the original investment.

Management fees and/or other expenses also apply on an ongoing basis for each subaccount investment portfolio available under the policy. Please see the prospectus for more details concerning any applicable fees and each subaccount investment portfolio's expense.

Variable universal life products are long-term investments designed to provide life insurance protection and flexibility in connection with premium payments and death benefits. You should carefully consider the investment objectives, risks, charges, and expenses of the investment alternatives before purchasing a policy. These policies have limitations and are sold by prospectus only. The prospectus contains details on the investment alternatives, policy features, the underlying portfolios, fees, charges, expenses, and other pertinent information. To obtain a prospectus or a copy of the underlying portfolio prospectuses, please contact Lincoln Benefit Life Company or go to Please read the prospectuses carefully before purchasing a contract.

Neither Allstate nor its agents and representatives can give legal or tax advice.

Securities offered by personal financial representatives through Allstate Financial Services, LLC (LSA Securities in LA and PA). Registered Broker-Dealer. Member FINRA and SIPC. Main office: 2920 South 84th St., Lincoln, NE 68506, 877-525-5727. Check the background of this firm on FINRA's BrokerCheck website.

This information is provided for general consumer educational purposes and is not intended to provide legal, tax or investment advice. Life Insurance offered through Allstate Life Insurance Company, Northbrook, IL; Allstate Assurance Company, Northbrook, IL; Lincoln Benefit Life Company, Lincoln, NE and American Heritage Life Insurance Company, Jacksonville, FL. In New York, life insurance offered through Allstate Life Insurance Company of New York, Hauppauge, NY. All guarantees are based on the claims-paying ability of the issuing insurance company.

Policy issuance is subject to availability and qualifications. This policy has exclusions, limitations and terms that may affect coverage, renewal, cancellation, termination, or other contractual rights and benefits.

ECC Monitor: OK