Fidelity Life Insurance: Is It Worth The Hype?

Fidelity Life Insurance offers a range of term and permanent life insurance policies, including options for seniors and people who need coverage quickly. The company has been in business since 1896 and is known for its no-medical-exam coverage options, which are available to most applicants. However, Fidelity Life has received a high number of customer complaints, and its term policies are not convertible to permanent coverage. The company also offers relatively low coverage limits and limited customization options. Overall, while Fidelity Life may be a good option for those who need quick and affordable coverage, it is important to shop around and compare rates and features with other providers before making a decision.

Pros and cons of Fidelity Life Insurance

Pros of Fidelity Life Insurance

Fidelity Life Insurance has a range of benefits, including:

• A variety of policies available without a medical exam.
• A range of policy options for seniors.
• The option for instant approval and temporary coverage while waiting for a medical exam.
• A terminal illness rider included with some policies, allowing access to a portion of the death benefit while the policyholder is still alive.
• A child life insurance rider, which adds coverage for children until the policy expires or they turn 23.
• A flexible care rider to help pay for long-term care expenses.
• A 30-day free look period.
• A smooth online experience and availability of agents.
• Coverage that often starts within days of application.

Cons of Fidelity Life Insurance

There are also several drawbacks to Fidelity Life Insurance:

• A high number of customer complaints.
• Fewer insurance riders than some competitors.
• Limited term coverage limits.
• No option to convert term policies to permanent coverage.
• Limited customisation options.
• Poor customer service after purchasing a policy.
• No mobile app.
• No live chat option.

Fidelity Life Insurance policies

Fidelity Life Insurance offers a range of policies, including term life insurance, permanent life insurance, and no-exam life insurance. Their term life insurance is available to applicants aged 18 to 65, with coverage amounts ranging from $50,000 to $2 million and terms of 10, 15, 20, or 30 years. They also offer senior life insurance, with coverage amounts ranging from $10,000 to $150,000 and terms of 10, 20, or 30 years. This policy is designed for seniors aged 50 to 70 and does not require a medical exam.

Fidelity Life also offers whole life insurance for individuals up to 85 years old, with coverage amounts up to $150,000. This policy does not require a medical exam but considers publicly available data and answers to health questions to determine eligibility. They also offer final expense life insurance policies with lower coverage amounts of $5,000 to $40,000 for individuals up to 85 years old, and guaranteed issue life insurance with a maximum coverage of $25,000 for individuals between 50 and 85 years old.

In addition to their standard policies, Fidelity Life Insurance offers several riders that can be added to customize coverage, such as the accelerated death benefit rider, child life insurance rider, and accidental death rider. Their policies are available in most states in the US, excluding Wyoming and New York.

While Fidelity Life Insurance provides a smooth online experience and a range of coverage options, particularly for seniors, the company has received a high number of consumer complaints, indicating potential issues with customer satisfaction. Their term policies also have limited customization options and are not convertible to permanent coverage. Overall, Fidelity Life Insurance may be a good option for older individuals seeking quick and affordable coverage, but customers should be aware of the company's mixed reviews and high complaint rate.

Fidelity Life Insurance riders

Fidelity Life Insurance offers a range of riders that can be added to their policies to provide additional coverage and benefits. Here are some of the key riders offered by Fidelity Life Insurance:

• Accelerated Death Benefit Rider: This rider allows the policyholder to access a portion of their life insurance payout before their death if they are diagnosed with a terminal illness. This can provide financial support during a difficult time and help cover medical expenses or other immediate needs.
• Child Life Insurance Rider: This rider adds coverage for the policyholder's children until the main policy expires or the children reach a certain age, typically 23. It provides a small amount of additional coverage to help protect the entire family.
• Accidental Death Rider: In the unfortunate event that the policyholder dies in a covered accident, this rider increases the payout of the life insurance policy. Covered accidents usually include those involving cars, heavy machinery, or other specified circumstances.
• Inflation Protection Rider: While not mentioned on the source, this is a common rider offered by many insurance companies. This rider helps protect against the impact of inflation by increasing the benefit amount over time, ensuring that the policy's purchasing power remains adequate.
• Waiver of Premium Rider: Again, this is a common rider that is often available, although not mentioned in the source. This rider waives the policy premiums if the policyholder becomes disabled and unable to work. It helps to ensure that the policy remains in force even if the policyholder can no longer pay the premiums due to their disability.

It is important to note that the availability of specific riders may vary depending on the policy chosen and the state of residence. It is always a good idea to review the available riders when purchasing a life insurance policy to ensure you are getting the coverage that best meets your needs and provides comprehensive protection for your loved ones.

Fidelity Life Insurance customer complaints

Fidelity Life Insurance has received a high number of customer complaints, with sources noting that the company has received more complaints than expected for its size. The National Association of Insurance Commissioners (NAIC) reported that the company's complaint index over three years (through 2022) is 1.8, indicating that it received more complaints than expected given its market share.

Customers have complained about the company's communication tactics, such as sending unwanted marketing emails and making policy changes difficult. There are also complaints about the difficulty in reaching representatives and the time taken to process applications. One customer review on the Better Business Bureau (BBB) states that they had to wait for "1 hour and 31 minutes [and] 12 different 'reps' to get one piece of paper… [I] got disconnected eight times!".

Fidelity Life Insurance's customer service has been described as lacking, with some customers reporting that they had to wait a long time to reach a representative or did not receive a response to their queries. The company does not offer a live chat option on its website, and customers have had to rely on phone and email support.

In addition to the high volume of complaints, customers have also expressed concerns about the low coverage limits and few customization options offered by Fidelity Life Insurance. The company's term policies are not convertible, and there are limited rider options available.

Fidelity Life Insurance rates

Fidelity Life Insurance offers a range of term and permanent life insurance options with varying rates. The rates depend on factors such as age, health, lifestyle, occupation, and driving record. Here are some key points about their rates:

Term Life Insurance Rates:

Fidelity's term life insurance is available for individuals aged 18 to 65, with coverage amounts ranging from $50,000 to $2 million. The policy terms offered are 10, 15, 20, or 30 years. The monthly cost for a 20-year, $500,000 policy can be as low as $21.25 for a 35-year-old male non-smoker in excellent health. However, the final quote will depend on individual factors.

Senior Life Insurance Rates:

Fidelity offers several types of life insurance for seniors aged 50 and above. The coverage amounts and rates vary depending on the specific plan chosen:

• Senior term life insurance offers coverage from $10,000 to $150,000 for 10, 20, or 30 years.
• Whole life insurance provides coverage up to $150,000 for individuals up to 85 years old, without a medical exam but with health questions.
• Final expense life insurance offers lower coverage amounts, from $5,000 to $40,000, for individuals up to 85 years old, with a medical questionnaire but no exam.
• Guaranteed issue life insurance guarantees approval for those between 50 and 85 years old, with a coverage limit of $25,000.

Riders and Additional Coverage:

Fidelity Life Insurance also offers riders, which are add-ons to customize your coverage. These include the accelerated death benefit rider, child life insurance rider, and accidental death rider. The availability and cost of these riders may vary depending on the selected policy.

While Fidelity Life Insurance provides a range of options, it is important to note that they have received a high number of customer complaints relative to their size, which may be a cause for concern. It is always recommended to shop around and compare rates and features from multiple providers before making a decision.

Frequently asked questions