Life Insurance For Allstate Retirees

Life insurance for Allstate retirees was terminated on January 1, 2016. This decision shocked many Allstate retirees who had been promised these benefits, prompting them to file a class action against the company.

On December 28, 2021, the 11th Circuit Court of Appeals ruled that Allstate did not violate the Employee Retirement Income Security Act (ERISA) when it terminated the retirees’ life insurance benefits. This means Allstate retirees will be forced to find their life insurance coverage at their own expense.

This blog will look at what Allstate retirees must do now that their benefits have been terminated.


What Happened To Allstate Retiree Life Insurance?

Allstate Insurance Company notified their retirees in July 2013 that they would stop paying for the retiree life insurance benefits starting January 1, 2016.

Here is the copy of the notice that Jim Devries, then vice president, gave the retirees:

“After careful consideration, beginning January 1, 2016, we have decided to no longer pay the premium for your current retiree life insurance benefit. Your current retiree life insurance benefit will remain in effect, and Allstate will continue to pay for your premium coverage until December 31, 2015. However, at that time, your company-paid coverage will end. You will be allowed to continue coverage but at your own cost.”

On September 23, 2013, some retirees filed a class action in court, claiming Allstate reneged on the promise to provide life insurance.

On December 28, 2021, the 11th Circuit Court of Appeals ruled that Allstate did not violate the Employee Retirement Income Security Act (ERISA) when it terminated retiree life insurance benefits. 

What Are The Options Given To Allstate Retirees’ Life Insurance?

Allstate retirees were allowed to continue their company-provided life insurance at their own expense. However, many of these retirees found this option an unaffordable burden, especially for those on a fixed income.

Furthermore, many of these retirees could not find life insurance at a reasonable rate because they did not purchase it when they were younger. Allstate’s decision to terminate its life insurance benefits has left many retirees in a difficult position.

The other option for Allstate retirees is to purchase an individual life insurance policy. Many Allstate retirees have better luck getting lower rates with companies like Funeral Funds of America.

What Can Allstate Retirees Do?

While Allstate’s decision has left many retirees in a difficult position, options are still available.

Buying a final expense life insurance is likely the best option for most Allstate retirees. This type of life insurance covers funeral costs and other final expenses. It is available for those aged 50 to 85 and does not require a medical exam.

Burial insurance is often much more affordable because of the small face value option. This type of policy is best for those who want to cover their final expenses but have a limited budget.

Here are some possible insurance uses for Allstate retirees:

  • Burial insurance for Allstate retirees
  • Cremation insurance for Allstate retirees
  • Debt payment insurance for Allstate retirees
  • Final expense insurance for Allstate retirees
  • Funeral insurance for Allstate retirees
  • Health insurance for Allstate retirees
  • Life insurance for Allstate retirees
  • Income protection insurance for Allstate retirees
  • Long-term care insurance for Allstate retirees
  • Mortgage protection insurance for Allstate retirees
  • Prepaid insurance for Allstate retirees

What Is Burial Life Insurance For Allstate Retirees?

Burial, funeral, cremation, or final expense life insurance are typically whole-life insurance policies that will remain active for a lifetime. These policies don’t require a medical exam, and most retirees with pre-existing conditions can qualify for coverage.

Burial life insurance for Allstate retirees is a policy that will pay out a death benefit to cover the costs of a funeral, cremation, or other final expenses. This type of policy is often more affordable than traditional life insurance because it has a smaller face value.

Burial insurance is a crucial safety net for Allstate retirees and their families. This policy can help ensure that loved ones are not burdened with paying for final expenses.

Benefits Of Burial Insurance For Allstate Retirees

  • Easy to qualify – The application process is straightforward. You will need to answer a few health questions to be eligible for the best rates, and almost everyone qualifies for 1st-day coverage.
  • No medical exam required – Since no medical exam is required, you can get coverage quickly.
  • Quick application process – Application can be accomplished with an agent over the phone or internet.
  • The death benefit amount is fixed – The death benefit is guaranteed and will not decrease due to changes in the market.
  • Fixed premium – The monthly premium is set when you purchase the policy and will not increase as you age.
  • Lifetime Coverage – The policy will stay in force as long as premiums are paid.
  • Not cancellable – Burial insurance is permanent life insurance that will never cancel due to your age or declining health condition as long as you pay your premiums on time.
  • Cash value accumulation – A portion of your premium payments goes into a cash value account that you can access if you need it during your lifetime.

Requirements To Qualify For Retiree Life Insurance

  • Age Requirement – Most burial insurance companies accept applicants who are 50-85 years old.
  • State Availability – Not every insurance provider has their life insurance products licensed in every state, so make sure the company you choose is available.
  • Ability to Enter into a Legal Contract – You must possess the mental capacity to enter a legal contract.

How To Apply For Burial Insurance For Retirees

STEP 1 – Work with a qualified life insurance agent from Funeral Funds of America. We will compare policies from over 20 top life insurance companies to find you the best coverage at affordable rates.

STEP 2 – Fill out an application form over the phone or internet. The application will ask you some basic questions about yourself and some health questions. The life insurance company will use the information on the application to decide whether or not to approve your policy and what rate to charge you.

STEP 3 – Make your first payment. You can do this by setting up automatic payments from your bank account. Once the life insurance company receives your payment, your policy will be active, and you will be covered!

How Can Funeral Funds Help Me?

Finding a policy if you’re an Allstate retiree needn’t be frustrating; working with an independent agency like Funeral Funds will make the process easier and quicker. We work with over 20 top life insurance companies and can help you find a policy that fits your needs.

Funeral Funds is here to help you understand all your options for life insurance coverage. We are not affiliated with any life insurance company, so we can offer unbiased advice to help you make the best decision.

If you are looking for funeral insurance for Allstate retirees, burial insurance for Allstate retirees, or life insurance for Allstate retirees, fill out our quote form on this page or call us at (888) 862-9456, and we can give you an accurate quote.

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