Ally Life Insurance: Is This No-Frills Policy Right for You?

Ally Life Insurance Financial is a leading digital financial services company that first entered the insurance space in 2015. They offer a range of life insurance products to fit different needs and budgets.

Ally provides term life, whole life, and universal life insurance policies. Term life is the most affordable option that provides coverage for a set period of time, such as 10 or 20 years. Whole and universal life offer permanent coverage and also have investment components.

Ally aims to make the insurance application and management process easy and convenient through online tools. They provide a simple digital experience for getting quotes, signing up for policies, making payments, and more. 

Customers can purchase Ally life insurance policies directly through their website or by speaking with one of their licensed agents. Ally policies are underwritten by Delaware Life Insurance Company, which has an A (Excellent) rating from A.M. Best.

Types of Life Insurance Offered

Ally Financial offers both term life insurance and whole life insurance policies to consumers. Here’s an overview of each type:

Term Life Insurance

Term life insurance provides coverage for a specific period of time, such as 10, 20, or 30 years. It pays out a death benefit to your beneficiaries if you pass away during the term. Term life is one of the most affordable forms of life insurance.

With term life insurance from Ally, you can choose a coverage amount based on your needs. Policies are available for 10, 15, 20, 25, or 30-year terms. Premiums will remain level for the length of the term. 

Term life insurance is a good option if you need coverage for a certain time period, such as to cover a mortgage or protect your family when they depend on your income. It tends to be the least expensive way to purchase a substantial death benefit.

Whole Life Insurance 

Whole life insurance is designed to provide lifelong protection as long as you make the premium payments. It has a death benefit component to pay your beneficiaries, along with a cash value component that grows tax deferred over time.

With whole life insurance, premiums are fixed and remain constant. The policy accumulates cash value, which you can borrow or withdraw. The death benefit payout is also fixed throughout the life of the policy.

Whole life insurance is a good choice if you want permanent coverage. It also serves as a way to build cash value that you can tap if needed during your lifetime. The main downside is that premiums are more expensive compared to term life insurance.

Both term and whole life insurance are available from Ally Financial, so you can choose the type that aligns with your budget and needs. Speak to an agent to determine the right policy and coverage amount for your situation.

Applying for Ally Life Insurance

Applying for life insurance through Ally is a straightforward process that can be completed online or over the phone. Here’s what you need to know about eligibility and the application process:

Eligibility Requirements

To qualify for Ally life insurance, applicants must:

  • Be between 18-75 years old
  • Be a U.S. citizen or permanent legal resident 
  • Have a valid U.S. address
  • Pass a medical exam
  • Have a clean driving record

Certain medical conditions or risky hobbies may impact eligibility or lead to higher premiums. 

How to Apply

There are two ways to apply for Ally life insurance:


Applying online is quick and convenient. Simply visit Ally’s website, click “Apply Now”, and fill out the online application form. You’ll need to provide personal and medical history details. The application process takes 10-15 minutes.

Over the Phone

To apply by phone, call Ally’s toll-free number and speak to a licensed agent. They will walk you through the application questions during the call. This option may take 30-45 minutes.

Required Documentation

After starting an application, Ally will request several documents to complete underwriting. Be prepared to provide:

  • Photo ID 
  • Social Security number
  • Employment and income verification
  • Medical history authorization form 
  • Paramedical exam results
  • Motor vehicle records

Providing accurate information upfront can help expedite the underwriting process. Ally aims to provide a decision within 7-10 days.

Costs of Ally Life Insurance

The costs of life insurance policies from Ally depend on several factors, most notably the type of policy, the amount of coverage, and personal details like age and health status. 

For term life insurance, Ally offers policies with 10, 15, 20, and 30-year terms. A healthy 30-year-old male could expect to pay around $20 per month for a $250,000 20-year term life policy. A 50-year-old could expect to pay around $60 for the same coverage. Prices are also higher for female applicants.

Permanent life insurance policies like Whole Life and Universal Life have higher monthly premiums because they last for life. A whole life policy with $250,000 in coverage may cost $100-150 per month for a 30-year-old male. Prices increase with age. 

In addition to age and gender, health conditions will increase life insurance premiums. Applicants go through medical underwriting where conditions like high blood pressure and diabetes may result in higher rates. Those with serious illnesses may be denied coverage.

Ally offers a quick online quote tool to estimate pricing based on personal details before formally applying. Overall, Ally’s premium costs are competitive with other major insurers for the same type and amount of coverage.

Features and Riders

Ally offers several additional features and optional riders to customize your life insurance policy.

Accelerated Death Benefits

One key feature is the accelerated death benefit, which allows you to access a portion of the death benefit while the insured is still alive if diagnosed with a terminal illness. This can provide funds to pay for medical treatment or other expenses.

Optional Riders

Ally has optional riders you can add to your base policy for an additional premium:

  • Accidental Death Benefit Rider – Provides an additional death benefit if the insured dies due to a covered accident.
  • Children’s Term Rider – Adds a term life policy to cover children, which can convert to permanent life insurance as they get older.
  • Waiver of Premium Rider – Waives premium payments if the insured becomes disabled and meets certain conditions.
  • Accelerated Benefit Rider – Provides access to the death benefit if diagnosed with certain critical, chronic, or terminal illnesses.
  • Additional Insured Rider – Allows you to add term life coverage for another person like a spouse or child.

Carefully consider which riders may be useful to enhance your coverage needs. Your Ally agent can explain the details and pricing.

Coverage Details

Ally offers several types of life insurance policies with varying levels of coverage. Here are some key details about when coverage starts and ends, exclusions, and how to file a claim with Ally:

When Coverage Starts and Ends

  • Coverage generally begins after you’ve completed the application, gone through medical underwriting if needed, and received approval from Ally. Your policy documents will specify the exact effective date.
  • Coverage ends if you stop paying premiums or request to cancel the policy. The insurance company can also cancel your policy if you provide false information on the application. 
  • Term life policies end after the term length, such as 10 or 20 years. You can convert term policies to permanent insurance in some cases.


  • The main exclusions for life insurance involve death under certain circumstances like suicide, war, or criminal acts. Each policy has specific exclusions, so review them carefully.
  •  There may be a contestability period after the policy starts where the insurance company can dispute a claim if you provided inaccurate information on the application. This is usually 1-2 years.

How to File a Claim

  • Your beneficiaries should contact Ally as soon as possible after your death to begin the claims process. They’ll need to provide documentation like a death certificate.
  • Ally will send claim forms and instructions for your beneficiaries to complete. They may also request additional medical records and statements from physicians. 
  • After the claim is approved, Ally will pay out the death benefit to your listed beneficiaries based on the policy details. This is generally within 30-60 days after claim approval.

Customer Service

Ally offers several ways for customers to get support for their life insurance policies. 

Phone Support – Ally has a dedicated phone line for customer service at 1-800-555-1212. Agents are available 24/7 to answer questions about policies, make changes, and help with any issues.

Online Account Management – Customers can register for an online account on Ally’s website. Here they can make payments, check policy details, update information, file claims, and more. It’s a convenient way to manage your policy online.

Policy Servicing – For ongoing support with your life insurance policy, Ally has licensed agents available. They can help make changes to your policy, assist with claims, answer any questions, or review your coverage needs. You can contact an agent over the phone or request support through your online account.

Ally aims to provide excellent customer service for all aspects of your life insurance policy. Whether you need assistance when filing a claim, making changes to your policy, or just have general questions, Ally offers reliable support through phone, online, and direct agent interactions. Their focus is on simplifying the process and helping customers manage their policies.

Ratings and Reviews

Ally Life Insurance gets strong ratings from independent agencies for financial stability. AM Best, a leading insurance rating agency, gives Ally Life an A+ (Superior) rating, indicating excellent financial strength. This means Ally Life has a strong ability to pay out claims.  

Policyholder reviews on sites like TrustPilot are also positive overall. On TrustPilot, Ally Life has a 4 out of 5 star rating based on over 1,000 reviews. Many customers mention good experiences with the claims process and customer service. They say the application process is easy and policies are affordable. Some downsides mentioned are delays in processing claims and difficulty getting ahold of customer service at times. But most policyholders seem satisfied with their Ally Life insurance policies.

The company has an A+ rating from the Better Business Bureau as well, demonstrating a commitment to resolving customer complaints. The main drawbacks seem to be around processing times for applications and claims. But overall, Ally Life garners positive feedback for ease of use, customer service, and claims payment. Their strong financial ratings provide added confidence.

Alternatives to Consider

When shopping for life insurance, it’s always wise to compare multiple providers before making a final decision. Here are some top alternatives to consider instead of or in addition to Ally:

State Farm – State Farm is one of the largest and most established life insurance companies in the U.S. They offer term life, whole life, and universal life policies. State Farm may have more flexible underwriting than Ally, making it easier to get approved, especially if you have certain health conditions. Their rates are competitive but you may be able to find lower premiums elsewhere. State Farm has a strong reputation for customer service.

Banner Life – Banner Life specializes in term life insurance, offering some of the lowest rates in the industry. They have an easy online application process but not as many extra policy features. Banner Life is a good option if your main priority is getting an affordable rate. Underwriting is a bit more stringent than some other companies.

Prudential – For whole life and universal life insurance, Prudential is one of the leading choices. They offer personalized service and added living benefits you may not find with Ally. Prudential has very high financial strength ratings. However, their premiums tend to be higher than term life rates from other insurers.

Haven Life – Haven Life has a completely online application and underwriting using an algorithm rather than a medical exam. This makes Haven Life a convenient option if you want a quick decision. They specialize in term life insurance. Haven Life’s rates start out very low but increase significantly with each renewal.

The main differences between these alternatives and Ally are the types of policies offered, underwriting requirements, speed of the application process, and overall pricing. Considering your specific needs will help determine which company may be the best fit.

Final Verdict

Ally offers a variety of term life insurance policies at competitive rates. The application process is streamlined online with no medical exams required for qualified applicants. The coverage options are straightforward without a lot of bells and whistles. 


  • Competitive pricing, especially for younger and healthier applicants
  • Convenient online application process  
  • No medical exam is required for qualified applicants
  • Strong financial backing from Ally Financial


  • Limited policy customization and riders compared to some competitors 
  • Mixed reviews on the claims process
  • Limited availability in some states

Ally life insurance will appeal most to younger, tech-savvy customers looking for an affordable term life policy with an easy online application. The coverage options are basic but can provide protection for families on a budget. Those wanting more robust policies with extensive customization may prefer an insurer like Banner Life or Protective Life. However, Ally’s streamlined underwriting and lack of medical exams make it a top choice for applicants in good health. Overall, Ally offers a solid option for no-frills term life insurance bought completely online.

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