An Allstate Corp. life insurance unit is celebrating Life Insurance Awareness Month by introducing an unusual type of life insurance: a term life policy that provides most of the death benefits in the form of monthly benefits payments, rather than one big lump sum.
Allstate is calling the new product the Monthly Income Term policy, and issuing it through the Allstate Assurance Company subsidiary.
Offering the death benefit in the form of a “monthly paycheck” should make it easier for people to use the product to protect their families’ standard of living, Allstate says.
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The Northbrook, Illinois-based company is offer a digital slider tool to help agents explain the product.
Customers can use the slider to see how changing the product term length, benefit period and death benefit amount affects the price.
The product does provide a one-time benefit payment of $10,000 immediately after the death of the insured, to help the family cope with expenses related to the death.
Mary Jane Fortin, the head of Allstate’s financial businesses, said in a statement that life insurers need to make insurance options easier for consumers to understand.
“Too many people put off purchasing life insurance — when they can’t afford to,” Fortin said. “Purchasing a life insurance policy is a true act of love that protects what matters most.”