American Heritage Life Insurance Review

Group plans with limited coverage offered through employers

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Allstate

Allstate Benefits

Our Take

American Heritage life insurance is a subsidiary of Allstate and offers employee benefits through Allstate Benefits. Since the company does not offer individual life insurance, your employer will need to contract with American Heritage through Allstate if you want a policy. And while it may be convenient and cheap to get life insurance through your employer, we recommend pursuing an individual policy with another provider. American Heritage has received a very high number of consumer complaints over the last three years.

  • Pros & Cons
  • Company Overview
  • specifications
Pros & Cons
Pros
  • Superior financial strength ratings

  • Portable policies and convertible term coverage

  • Wide range of policy types

Cons
  • Many more complaints with the NAIC than expected

  • Only available through an employer

Company Overview

American Heritage underwrites policies for Allstate Benefits, which provides several group insurance products to employees, including life insurance benefits. American Heritage does not sell life insurance directly to individuals. Allstate Benefits provides supplemental insurance coverage to more than 50,000 groups and 4 million people. The company was founded in 1931 with backing from Sears, Roebuck & Co. and is headquartered in Jacksonville, Florida. American Heritage Life Insurance Company is licensed in all states except New York, the District of Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands.

specifications
AM Best Rating
A+
NAIC Score (avg.)
N/A
Years In Business
91 Years
Policy Types
Term, Universal (UL), Variable Universal (VUL), Whole
Accepts Credit Cards
No
Why Trust Us We collected over 5,000 data points from 91 life insurance companies to measure financial stability, customer satisfaction, product and feature variety, and the overall buying experience. We then evaluated each company based on 55 metrics to develop unbiased, comprehensive reviews. Read our Full Methodology
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Allstate

Allstate Benefits

Pros Explained

  • Superior financial strength ratings: American Heritage received an A+ (Superior) financial strength rating from AM Best, which indicates a superior capacity to pay claims. 
  • Portable policies and convertible term coverage: If you leave your job, you can take your coverage with you. You also have the option to convert your term coverage to a permanent policy without having to reapply for coverage. 
  • Wide range of policy types: Many group plans only make term coverage available to employees, and some also offer whole life. But with Allstate Benefits, you can get term, universal, and whole life insurance through your employer.

Cons Explained

  • Many more complaints with the NAIC than expected: American Heritage had more than five times as many complaints as expected over the last three years. 
  • Only available if your employer offers it: Since American Heritage offers group coverage, you must be an employee of an organization that offers it to get a policy.

Complaint Index

Consumer complaints about American Heritage to the National Association of Insurance Commissioners (NAIC) are rampant. Each year, the NAIC calculates a complaint index for every insurer that indicates whether the number of complaints received is greater or less than the amount expected relative to the company’s size.

A rating of 1.00 indicates an insurer received an expected number of complaints based on its market share. A rating of lower than 1.00 indicates fewer complaints than expected based on the company's size, and a rating of over 1.00 indicates more complaints than expected based on a company's size. Over the last three years, the average complaint index for American Heritage is 5.01. That means the insurer received five times the number of complaints expected based on its market share.

Most of the top insurers we recommend do not score higher than 1.00 in any given year. American Heritage Life Insurance Company’s high complaint index indicates serious issues with customer satisfaction and should give applicants pause, even if group rates are cheap. Check out our best life insurance companies for better options. 

Third-Party Ratings

American Heritage Life Insurance Company gets high marks for financial stability. AM Best, an independent credit ratings industry that assesses the financial strength of insurance companies, gave American Heritage an A+ (Superior) grade, which is the second-highest grade available. It’s important to pay attention to AM Best ratings because a good grade indicates a strong likelihood that an insurer will be able to meet its obligations to policyholders, while an inferior grade can indicate an unsteady financial outlook that may result in unpaid claims. We generally don’t recommend insurers that score below the “A” bracket. 

Policies Available

Whole Life Insurance

Whole life insurance is a kind of permanent policy that features level premiums and a guaranteed death benefit paid to beneficiaries either upon death or policy maturity. With whole life insurance, some of your premium dollars go to building a cash value component that can be borrowed against. This is the most expensive type of life insurance but also comes with the most guarantees. 

Universal Life Insurance

Universal life insurance is another type of permanent policy that features an adjustable death benefit with flexible premiums. There’s also a cash value component that grows with interest. Minimum payments are required to keep the policy in force but may increase in later years if the cash value does not perform as expected or insufficient premiums were paid earlier on.

Term Life Insurance

Term life insurance is coverage designed to provide non-permanent protection. It can protect your family during your income-earning years so that if something happens to you, they can still meet financial obligations, such as paying the mortgage and paying for college. American Heritage offers a group policy where the death benefit is guaranteed for a period of time, though may decrease once you turn 70. Term coverage from American Heritage is also portable until age 70 if you leave your employer or can be converted to a permanent policy. 

Available Riders

American Heritage offers some add-ons you can use to customize your coverage, although availability can vary by state. Also keep in mind that not every rider may be offered on every policy. 

Child Rider

American Heritage allows you to add term coverage for all children under 26 and incapacitated children. 

Spouse Rider

Your term policy can also include term coverage for your spouse. 

Terminal Illness Rider

This accelerated death benefit allows you to access the death benefit early should you be diagnosed with a terminal illness that has a life expectancy of less than 12 months. 

Waiver of Premium

After six months of disability, this rider allows you to pause your premiums for as long as your disability lasts or until you turn 65.

Group policies often have relatively low coverage limits. American Heritage limits coverage up to five times your salary. You may need an individual policy to supplement or replace the plan offered through your workplace. 

Customer Service

American Heritage offers extended customer service hours between 8 a.m. and 8 p.m. ET on weekdays. You can call 1-800-521-3535 for English or 1-800-211-5533 for Spanish. You may also be able to get more information or assistance from your employee benefits sponsor or HR department. Additionally, the Allstate Benefits MyBenefits portal allows you to file a claim online and view your policy documents. 

Our Methodology: How We Review Life Insurance Carriers

We designed a comprehensive ranking methodology based on consumer priorities and life insurance company fundamentals to rank more than 90 insurers across five general categories: financial stability, customer satisfaction, product and feature variety, the overall buying experience, and cost.

In order to do this, we collected over 5,000 data points and scored each company based on 55 metrics. We grouped metrics by category to see how insurers performed in each; we then weighted category scores to determine how companies performed overall.

To learn more, read our full Life Insurance Methodology.

Article Sources
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  1. NAIC. “Results by Complaint Code.”

  2. AM Best. “Guide to Best’s Financial Strength Ratings - (FSR).”