Fidelity Life, not affiliated with Fidelity Investments or Fidelity Brokerage Services, offers simple term, whole, accidental death, and final expense policies for families who want to protect their children and grandchildren. As of 2019, it has over $32 billion of life insurance policies in force.
For those who want basic coverage or who have struggled to get approved for other forms of life insurance, Fidelity Life may be a good option. It offers guaranteed issue and accidental death benefit policies that can be a useful alternative for those who may not qualify for other coverage.
- Pros & Cons
- Key Takeaways
- Company Overview
Medical exams not required for all policies
Multiple insurance riders available
Significantly worse-than-average complaint ratios
Whole life insurance has age restrictions
Limited coverage amounts
- The company was founded in 1896 and is headquartered in Chicago, Illinois.
- Fidelity Life is part of the Legal Reserve Life Insurance Company.
- It has over $32 billion of life insurance policies in force.
- The company sells term, whole, final expense, and accidental death benefit policies.
- Fidelity life’s policies are not available in all 50 states.
Fidelity Life is part of the Legal Reserve Life Insurance Company and is headquartered in Chicago, Illinois. The company has a lengthy history; it was founded in 1896 and was one of the first life insurance companies to sell policies to both men and women.
While many insurance companies require you to speak to an agent to get a quote, Fidelity Life allows you to get quotes online. Or, you can call its customer service line if you’d prefer to speak to an agent over the phone.
Fidelity Life’s policies are available in most states and U.S. territories. However, they are not available in New York, Puerto Rico, or Wyoming.
- Year Founded 1896
- Kinds of Plans Term, whole, final expense, accidental death
- Number of Plans 7
- Payment Plan Options Monthly
- Customer Service Web, phone
- Phone 800-369-3990
- Official Website www.fidelitylife.com
- 30-day guarantee: While most companies only offer a 10-day free look period, Fidelity Life has a 30-day guarantee. You have 30 days after you receive your policy to cancel it for a full refund.
- Medical exams not required for all policies: While many life insurance companies require medical exams for all policies, including final expense and term life insurance, Fidelity Life doesn’t require medical exams for some policies.
- Multiple insurance riders available: Fidelity Life has multiple riders you can add to your policy to customize your coverage, including terminal illness, return of premium insurance, and accidental death benefit riders.
- Significantly worse-than-average complaint ratios: When it comes to customer complaints, Fidelity Life received more complaints than is typical for its size. In fact, it received more than double the expected number according to the National Association of Insurance Commissioner’s complaint ratios.
- Whole life insurance has age restrictions: While Fidelity Life does have a whole life insurance policy, not everyone is eligible for it. Only those between ages 50 and 85 qualify.
- Limited coverage amounts: If you’re looking for a large amount of coverage for your family, you’ll likely need to find another life insurance company. Fidelity Life’s coverage amounts are limited; its whole life policy is capped at $150,000, and the maximum coverage amount for its term life insurance option is $1 million. Other companies offer substantially higher limits.
Fidelity Life gears its policies toward those looking for supplemental coverage or who have struggled to qualify for insurance with other companies. With term, whole, final expense, and accidental death benefit plans, Fidelity Life offers seven different life insurance policies.
Accidental Death Benefit
Accidental death insurance only provides a death benefit if you die as a result of a covered accident. Coverage is a guaranteed issue, meaning there is no medical exam, and you cannot be denied based on answers to health questions.
Accidental death insurance is a good option if you want to supplement existing life insurance, such as coverage through your employer, or if you cannot qualify for other life insurance because of existing health issues.
Fidelity Life offers coverage amounts ranging from $50,000 to $300,000 and will cover individuals between ages 20 and 59.
Final expense policies are basic insurance plans that are intended to cover your burial expenses. Fidelity Life has two different final expense policies:
- RAPIDecision Final Expense: If you are between the ages of 50 and 85, you can get up to $35,000 in coverage. There is no medical exam, but your approval does depend on your answers to health questions on the application.
- RAPIDecision Guaranteed Issue: This option is similar to the RAPIDecision Final Expense policy, except there are no medical exams or health questions, and the maximum amount of coverage is limited to $25,000.
Term Life Insurance
With term life insurance, you have coverage for a specific period of time. Your beneficiaries only receive a death benefit if you pass away within the policy’s term. After the term expires, your beneficiaries receive nothing if you die, but term life insurance tends to be more affordable than permanent life insurance.
Fidelity Life has three term life options:
- RAPIDecision Life: If you are between ages18 and 65, you can get up to $1 million in term life insurance. You can choose a term of 10, 15, 20, or 30 years and lock in level premiums.
- RAPIDecision Express: If you are between ages 18 and 65 and don’t want to undergo a medical exam, you can get up to $100,000 in coverage with this option.
- RAPIDecision Senior Life: For people between 50 and 70, you can get up to $150,000 in coverage and choose a term of 10, 20, or 30 years.
Fidelity Life’s Term Life insurance policies cannot be converted to whole life coverage.
Whole Life Insurance
Whole life insurance is permanent insurance, so it lasts for your lifetime. Fidelity Life has only one whole life policy, RAPIDecision Senior Whole Life. It is only available to those between 50 and 85. You can get between $10,000 and $150,000 in coverage with no medical exam and you’ll have guaranteed level premiums for the life of your policy. Partial coverage begins immediately, and full death benefits will be paid out after the third year of coverage.
Like most insurance companies, Fidelity Life has insurance riders you can add to your policy. Riders, also known as insurance endorsements, allow you to customize your coverage. You can use riders to enhance your coverage or add covered persons.
Fidelity Life offers the following riders:
Accidental Death Benefit Rider
If you have a RAPIDecision Express term policy, you can add the accidental death benefit rider to include an additional payout if you die as a result of a covered accident. It’s available to individuals between ages 20 and 65 and offers coverage between $50,000 and $250,000.
For RAPIDecision Life or RAPIDecision Express term life policyholders, you can add the child rider to get a death benefit if your child passes away. The child rider would cover your child’s funeral expenses and possibly afford you the opportunity to take time off of work. The benefit ranges from $5,000 to $25,000 and covers children between the ages of 15 days to 18 years old.
Family Accidental Death Benefit Rider
If you have a standalone additional death benefit policy and want coverage for your spouse or children, you can use this rider to extend coverage to your partner and unmarried children under the age of 23.
If you have an accidental death benefit policy, you can add the inflation rider to ensure that your beneficiaries get the full value of the policy, regardless of inflation. The rider boosts the value of your policy by 25% by its sixth year in effect.
Return of Insurance Premium Rider
You can add the return of insurance premium rider to a standalone accidental death benefit policy. With this rider, your policy will begin to build cash value after its fifth year in force. If the death benefit expires or you discontinue the policy, you will be refunded a set percentage of the total premiums you paid.
Terminal Illness Rider
You can add the terminal illness rider to RAPIDecision Final Expense, RAPIDecision Guaranteed Issue, or RAPIDecision Express policies to access a portion of your death benefits early if you are diagnosed with a terminal illness. The rider can be added at no additional premium charge.
Fidelity Life offers useful resources online, including a term life insurance calculator to help you determine how much insurance you need, a learning center with insurance information, an FAQ, and a blog.
You can get quotes for policies online, and some plans can even be purchased entirely through the website. Other policies must be purchased over the phone through an agent.
To contact customer support, you can email email@example.com or call 800-369-3990.
Unfortunately, the phone lines are not staffed 24/7. Customer support is only available Monday through Friday from 8:00 a.m. until 5:00 p.m. CT.
The National Association of Insurance Commissioners (NAIC) releases companies’ complaint ratios every year, or the number of complaints a company receives relative to its market share.
The industry standard complaint ratio is 1.0. A ratio below 1.0 is considered better than average, and indicates that the company received fewer complaints than expected.
In 2020, Fidelity Life’s complaint ratio for individual life insurance was 1.42, almost twice as high as expected in the market.
Because the complaint ratio was so high, we looked at what the most common issues were. The most frequent complaints were about policyholder service, such as delays in claim processing or lack of response to inquiries.
For the past three years, Fidelity Life’s complaint ratios have been significantly higher than the national complaint index.
For over a century, AM Best has been one of the biggest credit rating agencies. Dedicated to the insurance industry, it issues its Financial Strength Ratings (FSRs) about insurance companies, giving its opinion on companies’ abilities to meet their contractual obligations.
In 2019, AM Best affirmed the Financial Strength Rating of A- (Excellent) for Fidelity Life Association, recognizing the company’s balance sheet strength and operating performance.
Fidelity Life was not included in the J.D. Power 2020 U.S. Life Insurance Study. In the study, J.D. Power ranked 24 life insurance companies based on several factors, including pricing, product offerings, communication, and customer satisfaction.
With most life insurance policies, you have a 10-day free look period. You typically have 10 days after enrolling in a life insurance policy to cancel your policy to get a full refund without having to pay a penalty.
However, Fidelity Life offers a 30-day money-back guarantee that extends the free look period to 30 days. Once you receive your insurance policy, you have 30 days to review it and cancel the policy. If you cancel it within 30 days, you will receive a full refund of any payments you’ve already made.
After the free look period, cancellation terms and fees vary based on the type of policy you have, so review your contract carefully before signing.
To cancel, call 800-369-3990.
When it comes to pricing, Fidelity Life tends to be more expensive than average, particularly if you’re in good to excellent health. Fidelity Life bases your premiums on multiple factors, including gender, age, and location.
We got quotes for term life insurance—RAPIDecision Life— for two 30-year-old adults in excellent health. Fidelity Life’s default option is $250,000 in coverage. If you’d like to adjust the coverage amount or term lengths, you need to contact an agent.
|Term Length||30-year-old female, non-smoker||30-year-old male, non-smoker|
Like all other life insurance companies we’ve reviewed, Fidelity Life requires you to choose between “male” or “female” when getting a quote. Being nonbinary doesn’t disqualify you from getting life insurance. However, you should be aware that most insurance companies haven’t updated their underwriting processes to reflect a current awareness of gender issues, and you may find their application processes frustrating or restrictive.
With Fidelity Life’s coverage limits and restrictions, it’s best for those looking for supplemental coverage or who cannot get life insurance elsewhere. With its restrictions and high complaint ratio, those in good health who are willing to undergo a medical exam can likely find more coverage options and better service with other insurance companies.
One company to consider is Mutual of Omaha. It has 11 different life insurance plans, including universal life policies, which Fidelity Life doesn’t offer. Its complaint ratio in 2019 was 0.65, much lower than the national complaint index, and significantly better than Fidelity Life’s complaint ratio.
Mutual of Omaha was also included in the J.D. Power 2020 U.S. Life Insurance Study, where it was ranked fifth out of 23 companies, with a rating of “better than most” in terms of pricing and customer satisfaction.
|Fidelity Life||Mutual of Omaha|
|Market Share||.09%||17th-largest in the U.S., 1.4%|
|Number of Plans||7||11|
|Dividends for 2020||Not applicable||Not applicable|
|Wellness Program Discounts/Quit Smoking Incentives||Not applicable||Not applicable|
|Service Method||Direct, phone, and agent||Direct, phone, and agents|
|AM Best Rating||A-||A+|
|Price Rank||N/A||Better Than Most|
If you already have life insurance through your employer and are simply looking for supplemental coverage, such as adding an accidental death benefit policy for added protection, Fidelity Life can be a useful option. However, it can be more expensive than the competition and has far more complaints than is expected for a company of its size.
If you’re looking for affordability and superior customer service, you’re better off shopping around with another company. There are other life insurance companies that have more life insurance options with higher coverage limits with around-the-clock customer service.
Our reviews of life insurance companies are based on a quantitative approach that analyzes each insurer on their stability and reliability, customer service, claims experience, diversity of product lines, and cost. We compare the terms of each type of policy offered—including available coverage amounts, optional riders, and premium payment options—with that of other major life insurance companies. Lastly, we look at how the company is rated by third-party organizations to determine its reliability and overall reputation.
National Association of Insurance Commissioners. "Complaint Index." Accessed November 30, 2020.
National Association of Insurance Commissioners. "Complaint Code." Accessed November 30, 2020.
AM Best. "AM Best Affirms Credit Ratings of Fidelity Life Association, a Legal Reserve Life Insurance Company." Accessed December 17, 2020.
J.D. Power. "Life Insurance Customer Satisfaction Flatlines Despite Pandemic Fears, J.D. Power Finds." Accessed December 17, 2020.