About Fidelity Life
Originally known by the peculiar name “Mystic Workers of the World,” Illinois-based Fidelity Life Association was founded in 1896 to provide Midwestern laborers and their families a more local, working-class-oriented life insurance alternative.
The company grew rapidly through the early 20th Century, building to over 50,000 policyholders before its 20th birthday.
In 2007, Fidelity Life converted from a mutual company to a stockholder-owned company and is now owned by a publicly traded parent, Vericity, Inc., which also owns web-based insurance marketer eFinancial.
Fidelity Life Company Snapshot
 | |
|---|---|
| Comparing ⟶ | Fidelity Life |
Year Founded | 1896 |
Company Structure | Stock |
Pricing | $ $ $ |
Types of Policies: | |
Term Life | ✓ |
Whole Life | ✓ |
Universal Life | ✗ |
Final Expense | ✓ |
Ratings: | |
A- | |
| ✗ | |
| ✗ | |
| ✗ | |
| ✗ | |
A+ | |
1.43 | |
IBUSA’s Overall Score | [icon name="star" class="" unprefixed_class="ystar"] [icon name="star" class="" unprefixed_class="ystar"] [icon name="star" class="" unprefixed_class="ystar"] [icon name="star-o" class="" unprefixed_class="ystar"] [icon name="star-o" class="" unprefixed_class="ystar"] |
Company Review |
Fidelity Life issues policies throughout the country. Initial applications can be submitted through agents over the phone or directly to the company online.
Fidelity Life offers term and whole life options, but not universal life.
And their specialty is simplified-issue no exam life insurance policies with a relatively short application process and no medical exam, though fully underwritten and guaranteed acceptance policies are also available. Coverage limits are higher with the fully underwritten policies.
It’s worth pointing out that Fidelity Life is separate and distinct from Fidelity Investments Life Insurance, the life insurance division of the privately held, Boston-based investment powerhouse popularly known as just “Fidelity.” It’s easy to confuse the two—there’s at least one well-known consumer-finance website that mixes up the names in its reviews.
Fidelity Life Financial Ratings
A.M. Best: A-
Fitch: NR
Moody’s: NR
S&P Global: NR
Comdex Ranking: NR
As of the end of 2019, Fidelity Life had over $30 billion worth of in-force life insurance policies and $420 million in assets. Compared to some of the industry giants, that makes Fidelity Life a mid-sized life insurance carrier.
The company’s A- A.M. Best rating is decent, though not great. But a history of sound financial management and stability makes Fidelity Life a fairly safe bet.
The Better Business Bureau currently grades Fidelity Life at A+, which is BBB’s highest rating. That generally means the company is responsive to customers, does not have a concerning history with regulatory agencies, and has customer service that compares favorably to competitors.
Indeed, Fidelity Life was recently rated by Newsweek as one of top U.S. companies in terms of customer service.
Overall, Fidelity Life customers seem to be pretty happy with the company, though premium pricing is a commonly noted criticism.
Products Offered by Fidelity Life:
- Term Life Insurance
- Whole Life Insurance
- Final Expense Insurance
- Accidental Death Benefit
Life Insurance Policies Offered by Fidelity Life
RAPIDecision Life (term):
According to Fidelity Life, RAPIDecision Life is the company’s most popular policy. The policy provides straight-forward term coverage for a period of 10, 15, 20, or 30 years.
The coverage is open to new applicants from ages 18 to 65 in coverage levels from $50,000 to as high as $1 million.
Premiums are level throughout a policy’s initial term, and renewal without further underwriting is available through age 95, subject to higher premiums.
Although policies are issued right away with only a medical history questionnaire needed upfront, most new insureds must undergo medical underwriting within 6 months.
Until full underwriting is completed, coverage is “blended – part all-cause, part accidental death coverage.” Full coverage kicks in once an exam confirms the insured’s eligibility.
RAPIDecision Express (term):
Express is Fidelity Life’s simplified-issue version of regular RAPIDecision Life. Policies are be issued with no medical exam, though coverage levels are lower—ranging from $25,000 to $100,000.
RAPIDecision Senior Life (term): Senior Life provides term coverage for between 10 and 30 years to new applicants from ages 50 to 70. Coverage levels start as low as $10,000 and go up to $150,000.
However, this is not burial insurance with no waiting period as only a partial benefit is payable for the first three years after a Senior Life policy is issued.
At the end of the initial term, policies can be renewed with a reduced benefit if the insured is below age 80, but all Senior Life policies expire when the insured reaches age 80 or at the end of the initial term—whichever happens later.
Senior Life policies are simplified-issue in most cases, with medical exams only required when written screening is not clear as to eligibility.
RAPIDecision Senior Whole Life:
Senior Whole Life provides no exam whole life insurance coverage to new applicants from ages 50 through 85.
Coverage amounts range from $10,000 to $150,000 and are guaranteed for life, though only a partial death benefit is available for the initial three years after issuance.
As whole life coverage, Senior Whole Life policies have fixed premiums and accrue cash value.
RAPIDecision Final Expense (whole life):
Fidelity Life’s final expense insurance policy is open to new insureds from 50 to 85. Coverage levels start at $5,000 and go up to $35,000, with no waiting period.
Policies require written health-history screening, but no medical exam is needed.
As whole life coverage, Final Expense policies have fixed premiums and accrue cash value.
RAPIDecision Guaranteed Issue Life (whole life):
Also intended as final expense coverage, Guaranteed Issue Life Insurance does not require any health history screening and is designed as an option for applicants whose health histories might otherwise leave them ineligible for life insurance.
New applicants from age 50 through 85 can obtain up to $25,000 in coverage, though full benefits do not kick in until the conclusion of a three-year waiting period after issuance.
Accidental Death Benefit (ADB):
Fidelity Life’s simplified-issue ADB policy pays out a death benefit if the insured’s death results from a qualifying accident.
The policy is open to applicants from ages 20 to 59, in coverage amounts from $50,000 to $300,000.
The ADB policy is eligible for several riders that Fidelity Life does not offer with its standard life insurance coverage.
Available Life Insurance Riders
Accidental Death Benefit Rider: Available with RAPIDecision Express term coverage, this rider provides supplemental coverage of $50,000 to $250,000 if an insured’s death results from a qualifying accident.
The insured must be between 20 and 65 to add the rider.
Benefits are reduced by 50% after age 70 and lapse at age 80.
Family Accidental Death Benefit Rider: If purchased, this rider extends accidental death coverage under an Accidental Death Benefit policy to a primary insured’s spouse and unmarried children up to age 23.
Accelerated Benefit Rider: If an insured is diagnosed with a terminal illness, up to 50% of a policy’s death benefit can be accelerated, subject to a $100,000 cap.
Child Rider: If selected, this rider adds $5,000 to $25,000 in supplemental coverage for a primary insured’s children up to age 18.
The rider is available with RAPIDecision Express and RAPIDecision Life policies.
Once in place, coverage lasts until a covered child reaches age 23, though a conversion option allows the rider to be converted to permanent coverage for the child.
Inflation Rider: For an extra fee, this rider increases benefit levels provided by an Accidental Death Benefit policy to keep pace with inflation.
Return of Premium Insurance Rider: Upon conclusion of an untriggered Accidental Death Benefit policy, the policyholder receives a premium refund of up to 100%.
