Life Insurance: Allstate Vs Onepath

Do you know how life insurance in Australia compares with America? Well, one useful way to find out is by comparing the products on offer from the two countries. Two insurers that stand out are Allstate (US) and OnePath (Australia).

Life Insurance - Allstate

Allstate Life boasts of $2.37 billion worth of direct premiums written. The term life coverage lengths include: 30, 10, 15 and 20 year periods. However, you would have to be a minimum of 18 years to qualify for any coverage, with a maximum applicable age of 80 years. You can also benefit from whole life coverage, which has a minimum age of 46 years and a maximum age of 90 years.

Although you are free to apply for coverage in varying amounts, the minimum coverage offered for term life is $50,000 and $10,000 for whole life. The good thing is that you have a wide variety of added features in term life including: accidental death benefit, guaranteed renewal, child cover and return of premium riders. Whole life simply offers accidental death benefit and child rider.

The premium charged for coverage would be based on a wide variety of factors. A typical monthly premium for a 20-year coverage worth $500,000 may be $30.62 for a young male, $24.94 for a young female, $47.25 for an older male and $38.94 for an older female. On the other hand, a typical monthly premium for a 20-year coverage worth $1 million may be $50.75 for a young male, $40.25 for a young female, $81.38 for an older male and $64.75 for an older female.

These premium rates evidently show how rates get higher the older a policy holder is and also depending on the gender, as well as amount of coverage. This is simply due to the greater risks with advanced age and also between different genders and varying coverage amounts.

Life Insurance - OnePath

OnePath boasts $97,654,392 worth of claims paid for life insurance in the year 2013. The single most significant cause of such claims was stroke in both female (51%) and male (40%) policy holders. The statistics also show a significantly greater claim amount for males ($72,062,856) compared to females ($25,591,536). This helps explain why males have higher premium rates compared to females, just as with Allstate Life.

OnePath offers you the added luxury of having an interim cover during the period that your application is being considered. Similar to Allstate, you have the beneficial feature of guaranteed continuing cover, which means that your policy will not cease in case your health changes. To make things even sweeter, policy holders have the benefit of premium discounts based on the amount of coverage, multiple coverage for yourself, as well as multiple covers linked with eligible family members or business partners.

It's interesting to note that when the insurer introduces new features to the life cover products even after you have already bought coverage, such features would also be added to your policy. Such upgrades to existing covers wouldn't involve higher premiums; however, you're free to increase your level of cover, leading to increased premiums, of your own free will. The list of extras doesn't stop there: you also earn points based on premium payments for policy holders with Qantas Frequent Flyer membership.

Kerrie Peacock regularly analyses trends within the life insurance industry. You are sure to get regular updates on such significant trends. You can also contact MeCovered for a personalized and professional consultation. For more information and advice, log on to www.mecovered.com.au/life-insurance-allstate/.

This article was published on 03 Aug 2014 and has been viewed 547 times
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