Allstate’s been a big name in insurance forever, but when it comes to life insurance, they’ve got a unique setup that’s worth a look. They team up with some solid partners to offer a range of policies, from term to permanent, that can fit your vibe and budget.
But is their service as smooth as their ads make it seem? And how do their options stack up in today’s market? Whether you’re curious about coverage flexibility or just want to know if Allstate’s worth your time, let’s break down what makes them tick and if they’re the right choice for your life insurance needs.
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The Evolution of Allstate’s Life Insurance
Allstate entered the life insurance market in 1957, expanding its offerings beyond property and casualty insurance. Over the decades, Allstate built a reputation for trustworthiness, encapsulated in its famous slogan, “You’re in good hands with Allstate.” The company offered a range of life insurance products, including term life, whole life, and universal life policies, tailored to meet diverse customer needs and budgets.
These products were designed to offer financial protection, whether for temporary needs like paying off a mortgage or lifelong coverage with cash value accumulation.
Allstate’s life insurance business was part of its broader strategy to serve millions of households across the United States. The company’s strong brand recognition and extensive network of agents made it a convenient choice for customers already insured with Allstate for auto or home coverage. However, in a significant strategic shift, Allstate decided to focus on its core businesses—auto and home insurance—and divest its life insurance operations.
The Sale to Everlake
In 2021, Allstate sold its life and annuity business to Everlake US Holdings, a private equity firm managed by Blackstone, for approximately $4 billion. This transaction included Allstate Life Insurance Company and Allstate Assurance Company, which were rebranded as Everlake Life Insurance Company and Everlake Assurance Company, respectively. As a result, all life insurance policies previously issued by Allstate are now managed and serviced by Everlake.
This sale was part of Allstate’s broader strategy to streamline its operations and focus on areas where it has a competitive advantage. For policyholders, this means their existing Allstate life insurance policies remain in force, but they are now under Everlake’s management. The terms, pricing, and guarantees of these policies have not changed, ensuring continuity for customers.
Understanding Everlake Life Insurance Company
Everlake Life Insurance Company was established on November 1, 2021, to continue serving the policyholders of the former Allstate Life Insurance divisions. With a heritage dating back to 1957 through its acquisition of Allstate’s life insurance business, Everlake positions itself as a stable and experienced provider (Everlake About). The company manages over 1.5 million policies and approximately $24 billion in assets, emphasizing its commitment to high-quality service.
Everlake offers a range of life insurance products to meet diverse needs:
- Term Life Insurance: Provides coverage for a specific period, such as 10, 20, or 30 years, with level premiums. It’s ideal for temporary needs, like covering a mortgage or supporting children until they’re independent.
- Universal Life Insurance: Offers flexible premiums and death benefits, with a cash value component that can grow over time based on interest rates.
- Variable Universal Life Insurance: Combines flexibility with investment options, allowing policyholders to invest the cash value in various subaccounts, which carry market risk but offer potential for higher returns.
- Whole Life Insurance: Provides lifelong coverage with fixed premiums and guaranteed cash value accumulation, suitable for those seeking permanent protection.
In addition to life insurance, Everlake offers annuities, including immediate, deferred, and variable annuities, which can provide income during retirement. The company also administers selected policies from other insurers, such as Lincoln Benefit Life Company and Surety Life Insurance Company, further expanding its portfolio.
Financial Strength and Stability
One of the most critical factors when choosing a life insurance company is its financial strength, as it directly impacts the company’s ability to pay claims. Independent rating agencies like AM Best evaluate insurers based on factors such as capital adequacy, operating performance, and business profile.
As of May 9, 2024, AM Best downgraded Everlake’s Financial Strength Rating (FSR) to A (Excellent) from A+ (Superior), with the Long-Term Issuer Credit Rating also downgraded to “a+” (Excellent) from “aa-” (Superior) (AM Best Downgrade). The outlook for these ratings was revised to stable from negative, indicating confidence in Everlake’s ongoing stability.
AM Best noted that Everlake’s balance sheet remains very strong, with strong operating performance and appropriate enterprise risk management. However, the downgrade reflects a shift in Everlake’s business profile to neutral from favorable, due to a competitive environment for annuity reinsurance and a moderate market share.
Previously, AM Best had affirmed Everlake’s A+ (Superior) rating in March 2023 and March 2022, highlighting its robust financial position at the time. The recent downgrade, while not drastic, may raise questions for policyholders about the long-term reliability of Everlake compared to top-tier competitors.
Weiss Ratings, another agency, assigns Everlake a C+ safety rating (Weiss Ratings). Weiss uses a different scale, where C+ suggests some weaknesses but indicates the company is generally safe for most purposes. This rating is lower than AM Best’s, which might prompt caution among prospective policyholders.
For context, top life insurance companies like Northwestern Mutual and New York Life hold A++ (Superior) ratings from AM Best, representing the highest level of financial strength. Other strong competitors, such as MassMutual and Pacific Life, also maintain A++ or A+ ratings, positioning them slightly above Everlake in terms of financial stability.
| Company | AM Best Rating | Key Strengths | Considerations |
| Everlake | A (Excellent) | Strong balance sheet, diverse products | Recent downgrade from A+; moderate market share |
| Northwestern Mutual | A++ (Superior) | Top-tier financial strength, excellent service | Higher premiums, limited online tools |
| New York Life | A++ (Superior) | Wide range of products, strong reputation | Can be expensive; less digital focus |
| MassMutual | A++ (Superior) | Comprehensive offerings, financial planning | Some policies may have high fees |
| Pacific Life | A+ (Superior) | Strong annuities, good customer satisfaction | Limited-term life options |
Customer Service and Policy Management
For existing policyholders, the transition from Allstate to Everlake has been designed to be seamless, with policies remaining in force under the same terms. Everlake provides multiple channels for customer service:
- Phone: Policyholders can reach support at 1-833-636-0034 for assistance with life insurance policies (Everlake Contact).
- Mail: Payments can be sent to P.O. Box 6009, Carol Stream, IL 60197, while other correspondence goes to P.O. Box 83328, Lincoln, NE 68501.
- Online: The Everlake Customer Portal allows policyholders to access policy details, make payments, and file claims (Everlake Service).
Certain products, such as Whole Life Advantage and some universal life policies issued in 1999 or later, are serviced by Transaction Applications Group, Inc. (TAG). Policyholders received notifications about this transition and can access TAG’s customer portal for support.
While specific customer reviews for Everlake are limited, the company emphasizes its commitment to high-quality service, leveraging its heritage from Allstate. Policyholders should ensure they understand how to contact Everlake or TAG for any policy-related needs, such as updating beneficiaries or filing claims.
What This Means for Existing Policyholders
If you purchased a life insurance policy from Allstate before 2021, your policy is now managed by Everlake. The terms of your policy, including premiums, coverage amounts, and guarantees, remain unchanged.
To stay informed, update your contact information with Everlake to receive important communications about policy changes, renewals, or claims. You can log into the Everlake Customer Portal or contact customer service for assistance.
The downgrade in Everlake’s AM Best rating from A+ to A might raise concerns for some policyholders. However, an A (Excellent) rating still indicates a strong ability to meet insurance obligations.
If you’re worried about the downgrade, consider reviewing your policy details or consulting a financial advisor to assess whether your coverage still meets your needs. For most policyholders, there’s no immediate cause for alarm, as Everlake’s financial position remains robust.
Options for New Life Insurance Buyers
For those seeking new life insurance policies, Allstate no longer sells life insurance directly. Instead, Allstate may provide quotes or referrals to partner companies, such as Protective Life Insurance Company (Riskquoter Allstate). Protective Life is a well-regarded insurer with competitive offerings, but new buyers should compare multiple providers to find the best fit.
When choosing a life insurance company, consider the following factors:
- Financial Strength: Opt for companies with high ratings from AM Best or other reputable agencies to ensure reliability.
- Product Offerings: Choose a provider that offers the type of policy you need, whether term, whole, or universal life.
- Cost: Compare premiums and understand the total cost over the policy’s duration.
- Customer Service: Look for companies with strong reputations for accessibility and claims processing.
Some top-rated life insurance companies to consider include:
- Northwestern Mutual: Known for its A++ (Superior) AM Best rating and excellent customer service, though premiums may be higher.
- New York Life: Also holds an A++ (Superior) rating, with a wide range of products and a strong industry presence.
- MassMutual: Offers an A++ (Superior) rating and comprehensive financial planning services, though some policies may have higher fees.
- Pacific Life: Maintains an A+ (Superior) rating, with strong annuity and life insurance options, though term life offerings are limited.
Comparing Everlake with Other Life Insurance Companies
To determine whether Everlake (as the successor to Allstate’s life insurance business) is a good choice, it’s helpful to compare it with other leading insurers. The table below highlights key differences:
| Company | AM Best Rating | Key Strengths | Considerations |
| Everlake | A (Excellent) | Strong balance sheet, diverse product range | Recent downgrade from A+; moderate market share |
| Northwestern Mutual | A++ (Superior) | Top-tier financial strength, excellent service | Higher premiums, limited online tools |
| New York Life | A++ (Superior) | Wide range of products, strong reputation | Can be expensive; less focus on digital |
| MassMutual | A++ (Superior) | Comprehensive offerings, financial planning | Some policies may have high fees |
| Pacific Life | A+ (Superior) | Strong annuities, good customer satisfaction | Limited-term life options |
Everlake’s A (Excellent) rating places it in a competitive position, though it falls short of the A++ ratings held by top-tier insurers. Its product range is diverse, but its moderate market share and recent rating downgrade may make some customers consider alternatives with stronger financial profiles.
Conclusion
In summary, Allstate is no longer directly involved in the life insurance business, having sold its life and annuity operations to Everlake US Holdings in 2021. For existing policyholders, Everlake Life Insurance Company provides continuity, managing policies with a strong financial foundation, though its recent AM Best rating downgrade to A (Excellent) from A+ (Superior) may warrant attention.
For new buyers, Allstate may serve as a starting point by offering quotes through partners like Protective Life, but it’s essential to compare multiple providers to find the best coverage.
Whether Allstate (via Everlake) is a good life insurance company depends on your specific needs. Existing policyholders can feel confident in Everlake’s ability to honor their policies, but they should stay informed about any changes.
New buyers should explore a range of insurers, prioritizing financial strength, product suitability, and customer service. By carefully evaluating your options, you can choose a life insurance provider that offers the security and peace of mind you deserve.
