General Life Insurance Questions
When does my coverage begin?
Coverage begins after your policy application is approved without any changes by the insurance company that issued your policy, and you've paid your first premium. To see when your coverage begins, look for the issue date shown on your Policy Data page.
Would my death benefit be lower if I were to die soon after I bought the policy, such as less than a year?
No. If you've paid your premiums on schedule, your beneficiary will receive the full death benefit amount you chose. (Subject to the terms and conditions of your policy.)
Will my beneficiary have to pay taxes on the death benefit?
Life insurance death benefits are generally free from federal income taxes.1
Term Life Insurance Questions
If I am still alive at the end of my policy's term (Initial Premium Guarantee Period), do I or my beneficiary receive any money?
No. A term life policy does not build cash value.
Permanent Life Insurance Questions
Can I increase the death benefit on my policy?
Yes, but you will have to submit a new application and may be required to take a new medical exam. If the application is approved, your premium for the higher death benefit will likely be more than your current premium.
Can I adjust my monthly payment amount?
Some permanent policies do allow for this flexibility. Contact your Allstate agency or Allstate customer service for more information about flexible premiums.
I've heard life insurance can be used for business purposes. How?
Life insurance can help business owners preserve their estate for the next generation or ensure a smoother succession of the business. It's also often used to financially reward a business owner, partner or key executive. Or, businesses will sometimes insure an employee with specialized skills so that if he or she dies, the business will have cash flow until they find a replacement.2
