State farm vs allstate life insurance is one of the most common comparisons shoppers make. Both companies are household names in the insurance industry. State Farm was founded in 1922. Allstate followed in 1931. However, these two insurers have taken very different paths in recent years.
State Farm remains a mutual company that directly underwrites its own life policies. Allstate sold its life and annuity business to Everlake Holdings in 2021. Today, Allstate-branded life policies are underwritten by partner carriers like Protective Life and Lincoln Financial. This distinction matters when you compare state farm vs allstate life insurance options. Understanding each company’s current structure helps you make a smarter decision for your family’s financial future.
State Farm Vs Allstate Life Insurance: Quick Comparison
| Feature | State Farm | Allstate |
|---|---|---|
| Company Type | Mutual (policyholder-owned) | Stock (publicly traded, ticker: ALL) |
| AM Best Rating | A+ (Superior) | A+ (Superior)* |
| JD Power Score (2025) | 697 (Ranked #2) | Not ranked in top tier |
| NAIC Complaint Index | 1.35 | Approximately 1.45 |
| Policy Types Offered | Term, Whole, UL, VUL, Survivorship UL, Joint UL | Term, Whole, UL, IUL, VUL (via partners) |
| Max Coverage Amount | Varies by policy type | Up to $50 million (term) |
| No-Exam Options | Yes (Instant Answer Term, Guaranteed Issue) | Yes (through partner carriers) |
| Dividend Payments | Yes (nearly $1 billion paid in 2025) | No (stock company) |
*Allstate’s AM Best rating applies to the parent company. Everlake Life Insurance Company, which now services Allstate life policies, was downgraded to A (Excellent) in 2024.
The biggest difference in the state farm vs allstate life insurance comparison is ownership structure. State Farm is a mutual company owned by its policyholders. This means profits go back to policyholders as dividends. Allstate is a publicly traded stock company. Its profits go to shareholders. For whole life buyers, this distinction can mean thousands of dollars over the life of a policy.
State Farm also directly underwrites every policy it sells. Allstate now relies on third-party carriers for new life insurance business. This means your Allstate-branded policy may actually be issued by Protective Life or Lincoln Financial. In most cases, the underwriting carrier matters more than the brand on the paperwork.
Policy Options: State Farm vs Allstate
When comparing state farm vs allstate life insurance policy lineups, both offer a broad range of products. State Farm sells term life, whole life, universal life, and variable universal life. It also offers survivorship universal life and joint universal life policies. These two-person options are ideal for estate planning. State Farm’s return of premium term policy is another standout. It refunds all premiums if you outlive the term.
Allstate offers term, whole, universal, indexed universal life, and variable universal life through its partner carriers. The indexed universal life option is notable. State Farm does not offer IUL policies. For example, if you want cash value growth tied to a stock market index, Allstate is the better choice. On the other hand, State Farm’s limited pay whole life lets you finish paying premiums at a set age while keeping lifetime coverage.
State Farm also offers a guaranteed issue final expense policy. This product requires no medical exam and no health questions. It provides permanent coverage up to $25,000. Allstate does not currently offer a comparable guaranteed issue product. However, its partner carriers may provide similar options depending on your state. Many families also compare home insurance at Home Insure Guide alongside life coverage, since bundling home and life policies through the same carrier often reduces overall costs.
Rates and Underwriting: State Farm vs Allstate
Rate competitiveness is a critical factor in the state farm vs allstate life insurance decision. State Farm typically offers competitive rates for healthy applicants. Its underwriting process includes full medical exams for larger policies. However, the Instant Answer Term program provides quick decisions for applicants under 45 seeking $50,000 or less in coverage. No medical exam is required for this option.
Allstate also advertises no-exam term life policies with affordable rates. These policies are underwritten by partner carriers using accelerated underwriting. Typically, accelerated underwriting uses data analytics and prescription databases instead of blood draws. Both companies offer preferred health classes for applicants in excellent health. State Farm generally has more health class tiers. This can benefit very healthy individuals with the lowest possible rates.
For applicants with health issues, the comparison shifts. State Farm’s guaranteed issue final expense product accepts everyone regardless of health. Allstate’s partner carriers may offer simplified issue products. In most cases, State Farm provides more direct options for hard-to-insure applicants. You can also compare auto insurance rates at Car Cover Guide since bundling auto and life insurance through the same carrier can save money on both policies.
Riders and Add-Ons Compared
Riders let you customize your policy beyond basic coverage. The state farm vs allstate life insurance rider comparison reveals meaningful differences. State Farm offers a wider selection of riders. Its flexible care benefit rider helps cover long-term care costs using your death benefit. The guaranteed insurability rider lets you buy more coverage later without a new medical exam.
| Rider | State Farm | Allstate |
|---|---|---|
| Waiver of Premium | Yes | Yes |
| Accidental Death Benefit | Yes (double/triple) | Yes |
| Child Term Rider | Yes (up to $20,000) | Yes (up to $25,000) |
| Accelerated Death Benefit | Yes | Yes |
| Guaranteed Insurability | Yes | Not confirmed |
| Long-Term Care / Flexible Care | Yes | No |
| Level Term Rider | Yes | No |
| Return of Premium | Yes (as policy type) | No |
State Farm’s rider lineup is notably stronger. The flexible care benefit rider addresses a growing concern among policyholders. Long-term care costs can drain a family’s savings quickly. Having this option built into your life policy adds real value. Allstate covers the basics well with waiver of premium and accidental death benefit riders. However, it lacks some of the specialized add-ons that State Farm provides.
Both companies offer accelerated death benefit riders. This rider lets you access a portion of your death benefit if diagnosed with a terminal illness. Typically, this rider comes at no additional cost with either company. For families who want maximum customization, State Farm provides more flexibility in the state farm vs allstate life insurance rider comparison.
Financial Strength and Stability
Financial strength matters because your life insurance company must pay claims decades from now. State Farm holds an A+ (Superior) rating from AM Best. This was downgraded from A++ in late 2025. The downgrade reflected challenges in State Farm’s property and casualty divisions. Its life insurance operations remain profitable. State Farm Life has been profitable for five consecutive years.
Allstate’s parent company also holds an A+ rating from AM Best. However, the situation is more complex. Allstate sold its life insurance business to Everlake Holdings in 2021. Everlake Life Insurance Company now services existing Allstate life policies. Everlake was downgraded to A (Excellent) in 2024. This is still a strong rating. However, it represents a step down from the original A+ rating these policies carried.
State Farm’s mutual structure provides an additional layer of stability in the state farm vs allstate life insurance comparison. As a mutual company, State Farm answers to policyholders rather than Wall Street. It paid nearly $1 billion in dividends to qualified life policyholders in 2025. That was the highest dividend payout in company history. Allstate, as a stock company, directs profits to shareholders. This structural difference gives State Farm whole life policyholders a meaningful financial advantage over time.
Which Life Insurer Should You Choose?
Choose State Farm if: You want a mutual company that pays dividends on whole life policies. You prefer working with a company that directly underwrites its own life policies. You need specialized riders like the flexible care benefit for long-term care protection. You want a return of premium term option that refunds your premiums if you outlive the term.
Choose Allstate if: You want indexed universal life insurance, which State Farm does not offer. You need very high coverage amounts up to $50 million on term policies. You already bundle auto and home insurance with Allstate and want multi-policy discounts. You prefer accelerated no-exam underwriting through established partner carriers.
In the state farm vs allstate life insurance matchup, State Farm wins for most buyers. Its mutual structure, dividend payments, and direct underwriting create a stronger foundation for long-term policyholders. State Farm’s JD Power ranking and broader rider selection reinforce this advantage. However, Allstate remains a solid choice for specific needs. Its IUL product and high coverage limits serve certain buyers well.
Ultimately, the best state farm vs allstate life insurance decision depends on your priorities. For whole life and long-term planning, State Farm’s mutual dividends are hard to beat. For term coverage with maximum flexibility, either company can serve you well. Get quotes from both before making your final choice. The right policy is the one that fits your budget and protects your family completely.
Frequently Asked Questions
Is State Farm or Allstate better for life insurance overall?
State Farm is typically the stronger choice for most life insurance buyers. It directly underwrites its own policies and pays dividends on whole life. However, Allstate may be better if you specifically want indexed universal life coverage.
Does Allstate still sell life insurance directly?
No. Allstate sold its life insurance business to Everlake Holdings in 2021. New Allstate-branded life policies are now underwritten by partner carriers like Protective Life and Lincoln Financial. In most cases, your actual policy issuer will not be Allstate itself.
Can I get state farm vs allstate life insurance quotes without a medical exam?
Yes. Both companies offer no-exam options. State Farm has its Instant Answer Term for applicants under 45 seeking up to $50,000. Allstate offers no-exam term policies through its partner carriers. For example, healthy applicants can typically get approved in hours rather than weeks with either company.
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Official Sources & Resources
For verified information on life insurance ratings and regulations:
- AM Best (Financial Strength Ratings): ambest.com
- NAIC (Complaint Ratios): naic.org
- ACLI (American Council of Life Insurers): acli.com
- Insurance Information Institute: iii.org
- J.D. Power (Customer Satisfaction): jdpower.com
Content last reviewed April 2026. If you notice any outdated information, please contact us.