As a part of its broader mission to offer consumer-driven and innovative insurance products and services, Allstate is introducing Monthly Income Term, a new life insurance policy that pays out like a monthly paycheck should a loved one pass away. The new product is available now, subject to state availability.
Monthly Income Term, the company said in a Sept. 26 press release announcing the product, “was designed to be simple to understand and will help people think differently about life insurance. Instead of a lump sum payment found in most standard life insurance policies, a monthly benefit makes it easier for families on a budget to protect their families and standard of living.”
With Monthly Income Term, customers can work with their agent to immediately visualize how term length, benefit period and death benefit amount impacts price thanks to a new, interactive digital slider tool provided by Allstate.
“Our industry must do a better job with helping consumers better understand and navigate their insurance options,” said Mary Jane Fortin, president of Allstate Financial Businesses. “Monthly Income Term is a big step forward to help provide financial security in a very simple way, especially for families who are balancing so many competing priorities.”
While some critics point to the scrutiny a few years back of insurers placing death benefits in “retained asset accounts” and benefitting from the interest earned in keeping the lump sum, or liken it to “gimmick marketing.” Allstate says the design of the product was driven by consumers, who have expressed that financial protection which acts like a monthly paycheck helps them better understand and determine how much coverage their families will need should the worst occur. This new form of financial protection helps replace the income families depend on so they can continue paying for everyday expenses like housing, groceries, car payments and kids’ activities. It also provides a one-time $10,000 payment to help with any other immediate expenses following the passing of a loved one.
Beneficiaries who prefer to take the death benefit in the form of a lump sum can convert the monthly payment stream into a one-time payment.
Monthly Income Term is offered for issue ages 18-65, and coverage will expire at age 71, according to an actuarial memorandum describing the new product. Monthly Income Term has a minimum death benefit of $2,000 per month, and a related rider has a minimum death benefit of $5,000.
“Last year, Allstate paid out over $950 million in benefits to more than 11,000 families. Yet, too many people put off purchasing life insurance – when they can’t afford to,” said Fortin. “Purchasing a life insurance policy is a true act of love that protects what matters most.”
Allstate Monthly Income Term is a term life insurance policy issued by Allstate Assurance Company, 3075 Sanders Rd., Northbrook IL 60062 and is available in most states with contract series ICC18AC11/NC18AC11 and rider series ICC18AC12/NC18AC12. Policy issuance is subject to availability and qualifications. This policy has exclusions, limitation and terms that may affect coverage, renewal, cancellation, termination, or other contractual rights and benefits. Guarantees offered are subject to the claims-paying ability of the issuing company. Not available in New York. For more information visit http://www.allstate.com