Fidelity Term Life Insurance: Is It Worth The Cost?

Fidelity Life Insurance offers a range of term life insurance options, including for seniors, and provides an easy application process without a medical exam. However, the company has received a high number of customer complaints and offers relatively low coverage limits and few customization options. While it is highly rated for financial strength, there are concerns about its customer satisfaction and it is not available in certain states. Overall, it is a good option for those seeking a swift and hassle-free application process, especially for older adults, but there are more affordable options available from competitors.

Pros and cons of Fidelity Life Insurance

Pros of Fidelity Life Insurance

Fidelity Life Insurance has a range of benefits, including:

• No-medical-exam coverage available to most applicants.
• A range of policy options for seniors.
• Terminal illness rider included with final expense policies.
• Instant approval, and most healthy applicants won't need a medical exam.
• The option to add a child life rider to protect the insurability of your children.
• A 30-day free look period.
• A broad range of coverage options, including term, permanent and no-exam policies.
• A financial strength rating of A- from AM Best.
• A simple online application process.

Cons of Fidelity Life Insurance

There are also some drawbacks to Fidelity Life Insurance:

• A high number of customer complaints.
• Relatively low coverage limits.
• Few customization options on its policies.
• Term policies aren't convertible.
• Better pricing is available elsewhere.
• No live chat option.

Fidelity Life Insurance policies

Fidelity Life Insurance offers a range of term and permanent life insurance options, with a focus on no-medical-exam policies and coverage for seniors. The company has been in business since 1896 and is licensed to provide life insurance in most US states.

Term Life Insurance

Fidelity's 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. The company also offers a senior term life policy for individuals aged 50 to 70, with coverage amounts from $10,000 to $150,000 and terms of 10, 20, or 30 years. Both term life policies use simplified underwriting and do not require a medical exam.

Whole Life Insurance

Fidelity offers two types of whole life insurance policies: RAPIDecision Senior Whole Life and RAPIDecision Final Expense. The Senior Whole Life policy is available to individuals aged 50 to 85 and provides coverage from $10,000 to $150,000. The Final Expense policy is designed to cover funeral and end-of-life costs and is available to individuals aged 50 to 85, with coverage ranging from $5,000 to $40,000.

Guaranteed Issue Life Insurance

Fidelity's RAPIDecision Guaranteed Issue policy is a type of whole life insurance that does not require a medical exam, making it a good option for those with pre-existing health conditions. This policy is available to individuals aged 50 to 85 and provides up to $25,000 in coverage.

Riders

Fidelity Life offers several riders that can be added to their life insurance policies, including:

• Accelerated Death Benefit Rider: Allows early access to a portion of the death benefit if diagnosed with a terminal illness.
• Child Life Insurance Rider: Adds coverage for children until the policy expires or they turn 23.
• Accidental Death Rider: Increases the payout if the insured dies in a covered accident.
• Inflation Rider: Adjusts death benefits to match inflation for the standalone accidental death benefit policy.
• Return of Premium Insurance Rider: Allows for a refund of a portion of the premiums paid if the policy is outlived or voluntarily cancelled.

Customer Satisfaction

Fidelity Life has received a high number of customer complaints relative to its size, according to the National Association of Insurance Commissioners (NAIC). This indicates that customer satisfaction may be an area of concern for the company. However, Fidelity Life has a financial strength rating of A- (Excellent) from AM Best, indicating a strong ability to pay future claims.

Customer complaints

Fidelity Life Insurance has received a high number of customer complaints, with the company receiving many more complaints than expected for its size, according to the National Association of Insurance Commissioners (NAIC). This indicates problems with customer satisfaction.

Over three years, Fidelity Life has drawn far more than the expected number of complaints to state regulators for a company of its size. The average complaint index for Fidelity Life over three years (through 2022) is 1.8, indicating that the company received more complaints than expected, given its market share.

Customers have expressed dissatisfaction with the company's customer service, reporting issues such as poor communication, difficulty reaching agents, and unresolved account errors. One customer described their frustration with unresponsive agents and a prolonged issue with their account. Another new policyholder faced challenges in accessing their policy documents and dealing with nonchalant support, ultimately deciding to cancel their policy.

However, some customers have reported positive experiences, with one policyholder praising the straightforward application process and quick approval despite health concerns. Another customer appreciated their agent's responsiveness and the ease of making policy changes.

How to apply for a policy

Applying for a Fidelity term life insurance policy can be done online, on your desktop, tablet, or mobile phone. The application process is simple and can be completed in as little as 15-20 minutes in many cases.

To start, you will need to provide basic information to get a monthly estimate, which will take around 2 minutes. This will give you an easy way to start the online application. You will then be asked to provide personal information, including your identity (which will be verified), contact information, employment, prescriptions you take, medical conditions, smoking status, and activities you enjoy. Having your medical history details on hand before starting the application is recommended.

After submitting your application, it will be reviewed. Approval could be immediate, but more often, Fidelity will request additional information, including a medical exam. The medical exam is conducted by a paramedic professional and is safe, secure, and can be done at a location and time convenient for you at no cost. You can expect your blood pressure, weight, and height to be checked, and blood and urine samples will also be collected.

Once Fidelity has all the required information, they will complete your review. If approved, you will receive a policy offer via email with the final cost. If you are satisfied, you can accept and pay, and your coverage will begin.

Customer satisfaction

Fidelity Life Insurance has received a high number of customer complaints, according to the National Association of Insurance Commissioners (NAIC). This indicates problems with customer satisfaction.

The company's average complaint index over three years (through 2022) is 1.8, which means it received more complaints than expected given its market share.

Customer reviews on Trustpilot and the Better Business Bureau (BBB) are mixed, with some customers reporting issues with the company's communication, difficulty reaching agents, and unresolved account errors. Others have praised the straightforward application process, quick approval, and responsive agents.

Fidelity Life's customer satisfaction could be improved by addressing the concerns raised in customer complaints and reviews, such as providing better communication and making it easier for customers to reach agents and resolve issues.

Frequently asked questions