At JustBuryMe, we focus on finding the best carriers in order to help our clients get the best coverage. One of our favorite companies for final expense and burial insurance is Fidelity Life Insurance. In the following review, we will address the pros and cons of Fidelity Life. Is this the right company for you?
2023 Review of Fidelity Life Insurance
Over the years, we have realized one thing – life insurance doesn’t have to be a difficult process if you take the time to research and find what’s right for you. To this day, there are two major mistakes that people still make and the first is buying no insurance at all. Of course, we have come to realize that this is a terrible move because it leaves loved ones unprotected should the worst happen. For the second, we tend to choose the company and policy based on what others have said rather than considering our own needs.
Today, we have a complete review of Fidelity Life so you can assess whether they would be a good option for you. As well as covering a brief history, we will look at their official ratings, products, and explain whether you would suit the company and its products or not. Without further ado, let’s head into it!
About Fidelity Life
After being founded in 1896, the business was originally set up to provide financial protection to middle class clients in the Midwest and some Northern states. As ‘Mystic Workers of the World’, they grew over time along with America and the amount of life insurance in force reached $100 million by 1915. While most businesses in the world were struggling with the Great Depression in 1929, the company doubled their assets and changed their name to Fidelity Life just one year later.
From 1953 to 2005, they were managed by numerous different organizations before eventually regaining independence. Today, Fidelity Life is available in every single state except New York and Wyoming and they have $26 billion worth of insurance active. With many customers these days, Fidelity Life has become a huge name within the life insurance industry and is expected to stay in position for some time to come.
Fidelity Life’s Official Ratings
When it comes to life insurance, there is perhaps no agency trusted quite as much as A.M. Best so this is where we will start with the official reviews. As you may or may not know, A.M. Best look towards the financial security of the company to assess whether they are in a position to pay their claims. If not, you would be better to look elsewhere so this is a great place to start.
A.M. Best – At the beginning of 2017, Fidelity Life was confirmed as ‘Excellent’ which translates into an ‘A-’ grade. Considering this drops all the way down to ‘F’ and beyond, this is a superb achievement. With over 120 years of history, Fidelity Life is now a trusted insurer and in a great position to continue operating for many years to come. With this in mind, it means that you can be confident with any claims that they will be paid.
Furthermore, it is one thing knowing that a company is financially secure now but it is another knowing what will happen in the future. Luckily, A.M. Best has this covered with its Long-Term Issuer Credit Rating and Fidelity Life obtained an ‘a-’ which means that they will also be secure years from now. If you want a long-term policy, this is fantastic news and means that the company should be in your considerations.
BBB – From the Better Business Bureau (BBB), we can see how well Fidelity Life communicate with their many clients. Again, this is of utmost importance because you need to know that there is a team behind you ready to help whenever necessary. If you happen to have problems with your policy, you should go for a company that interacts with all clients. As an accredited business, Fidelity Life were awarded with an ‘A+’ rating which is the best of sixteen grades.
Over the years, the BBB has been assessing the very best businesses in the market on various different categories including their complaint history, time in business, business practices, and failure to honor commitments. Again, this is a great rating which means that Fidelity Life has more than passed the official ratings test. Now, we can move forward to their product offering with confidence.
Fidelity Life Insurance Policies
Along with the official ratings, this is a pivotal factor because the company is of no use to you if they don’t offer a product that matches your needs. Today, we are going to be focusing on Fidelity Life’s RAPIDecision products, many of which are either simplified issue or guaranteed issue life insurance policies.
If you are aged between 50 and 85, Fidelity Life’s first product is a final expense burial insurance policy which allows your loved ones to receive some money after you die. With this, they can pay for medical bills, funeral costs, and any other debts you may have. With coverage from $5,000 to $35,000, you can choose the amount that is appropriate for your circumstances.
Although there is no medical examination required for this permanent insurance, you will need to answer a few health questions so Fidelity Life can gain some information about your health condition. For the most part, this isn’t the option for you if you are suffering with serious medical conditions or have been given a life expectancy of one or two years. This being said, they do cover those with less severe health issues.
Next up, we have a policy that, as you can tell from the name, is more suited to those with bigger health problems. Again, guaranteed issue life insurance covers you if you are between 50 and 85 years of age and you could get coverage of up to $20,000. This time, there is no medical examination but there are also no questions which means that there is no underwriting and you are guaranteed approval.
Essentially, this is a whole life insurance policy that has a cash value component on the side. Of course, there is always some bad news attached to a guaranteed issue policy and with Fidelity Life this comes with a three-year graded death benefit. If you were to die in these first three years, your beneficiary would only receive a certain percentage rather than the whole death benefit. From the fourth year forward, the entire death benefit will be active. For the duration of the policy, the coverage amount and premiums will remain the same.
In this section, they have both simplified issue term and whole life options depending on your need. As always, they are for people aged between 50 and 85 and there is a lot more flexibility with these options. Also, there is no medical examination but instead some simple medical questions that will contribute towards your premiums and whether you will receive coverage at all.
Senior Life Term – With this option, the policy will remain in place for a certain amount of term before expiring. With term life insurance, the age ranges are actually a little different at 50 to 70 but you can receive coverage anywhere between $10,000 and $150,000. Depending on your age and needs, you can also choose between 10, 20, and 30 years. After the first two years have been passed, the full death benefit will be paid upon your death. After the term has ended, the death benefit will reduce by half.
Senior Life Whole Life – On the flip side, this is a permanent form of insurance with the usual age ranges and a coverage amount the same as term life insurance. As before, you will need to make it to year three before the full death benefit becomes available and the policy will mature at 121 years of age. Within a regular application, you will not need to attend a medical examination. However, there are some occasions where it might be necessary including if they need to clarify something found in your medical history.
Accidental Death Benefit
Finally, we have the cheapest and most simple option just in case you want to protect yourself and your family against accidental death. For some, this can cost as little as $10 per month and you will be covered against all accidents so this allows your family to receive some money. Available for those between 20 and 59, you will find coverage amounts from $50,000 right up to $250,000. Until the age of 70, full benefits will be paid but this cuts in half for ten years before it expires at 80.
Additionally, there will be opportunities to extend the coverage to family members such as partners and any dependent children which could be important. Also, there are a few exceptions to the ‘accidental’ part of the equation including suicide, any incidents related to drugs or alcohol, and if you serve in the military. Aside from this, accidental deaths are covered so this could be a good move if you work in a particularly dangerous industry.
Is Fidelity Life the Best Option?
Fidelity Life is but one of many companies available. The key to finding the best company for you is to shop around with an agency that represents multiple companies. An agency like JustBuryMe.
Let us help align you with the company that best suits your specific needs, health and lifestyle. Give us a call today for a free consultation.