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Allstate Insurance

Allstate is the second largest insurer in the United States that provides personal policies to consumers.  Since the insurance company was first founded in 1931, Allstate has undergone some changes and grown substantially. This Northfield Township-based insurer has established its headquarters in Illinois, but provides annuities, life insurance, and other financial and investment products worldwide.

Property liability is Allstate’s biggest source of revenue, accounting for $28.9 billion of its $35.2 billion in total revenue.  Still, Allstate offers much more than just property liability products and many consumers may have different policy and investment options sold by the company.  When considering insurance or investments with Allstate or other providers, reading the sales and product literature carefully is key to making smart choices.

Unfortunately, sales literature from insurers is not always as descriptive as it should be. Those who believe they may have been misled or victimized in any way should consult with a San Francisco financial elder abuse attorney as soon as possible.

The Company’s Products

While best known for auto and property insurance, Allstate also offers life insurance policies including term life, permanent life, universal life, and whole life policies. Allstate promises to provide policies that work for individual consumers, such as TrueFit, which allows buyers to “pay for the protection they need, when they need it.”  Unlike a traditional level term life insurance policy, TrueFit does not just provide uniform protection across the board for the period of the term. However, premiums can change over time and coverage can change depending upon a number of factors.

Allstate also offers mutual funds, 529 college savings plans, annuities, Individual Retirement Accounts (IRAs) and mutual funds.  The company advertises its annuities as providing tax advantages, as well as lasting income. Options for annuities, which are sold through agents, include single premium immediate annuities; fixed annuities; index and equity-linked annuities; and variable annuities. Some annuities begin providing income right away after initial investments are made, while others are intended to provide payments in the future when retirement arrives.

Class Actions & Regulatory Actions Against Allstate Insurance

In 2012, the son of a policyholder who had purchased life insurance with Allstate lodged a putative class action* in a federal court in California. The policyholder’s son claimed that Allstate had engaged in deceptive marketing practices and had not properly disclosed surrender charges when early withdrawals were made from deferred annuity products.

Lawsuits arising from problems with annuities are very common, as often insurers fail to provide required disclosures or otherwise violate consumer protection regulations when marketing or administering these investment products.  In 2013, Allstate announced it was bowing out of annuities, as well as writing life insurance policies, perhaps in part because of the challenges in selling these types of products.

While Allstate may have taken steps to move away from the annuities market, there are still people with annuities sold through Allstate and there are still investors and consumers considering other Allstate products.

If you buy insurance, annuities, or other investment or financial products from any company and you believe you’ve been treated wrongly during any part of the transaction, you should contact Evans Law Firm, Inc. as soon as possible. Call us at (415) 441-8669 or email us at info@evanslaw.com.

*Disclaimer: Evans Law Firm, Inc. did not handle this lawsuit.

References: 

http://www.law360.com/articles/367756/allstate-faces-suit-over-deferred-annuities-penalties

http://insurancenewsnet.com/innarticle/Allstate-Bowing-Out-Of-Annuities-a-387653

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