Fidelity Life Insurance Company Review

Fidelity Life was established over a century ago during 1896 in Illinois. The company wanted to address the financial security of the middle class in the Midwest and Northern states.

Today, the company has nearly $23 billion of life insurance in force, $515 million in assets, and most notably a $250 million surplus. The company has recently transitioned from a mutual reserve company to a stock insurance company under Members Mutual Holding Company. To clarify, this company is not a subsidiary of Fidelity Investments.

Financial Ratings and Strength

As of July 2009, Fidelity Life has been rated as having ‘excellent’ financial strength by AM Best. They have given the company an ‘A-‘rating after independently reviewing the financial data. AM Best bases the ratings on evaluations of balance sheets, operational performance, and the company business profile. Their opinion is based on both financial strength and ability to meet obligations to policy holders.

Unique Array of Insurance Products

Fidelity Life has a unique life insurance product line. They market two lines of coverage; one suited for individuals and one separate line for business and sponsored benefits. The product lines are categorized by the benefits they offer, rather than the traditional insurance type.

Rapid Decision Term Insurance

This is in fact level premium term offered with the commitment of an approval decision within days, even with large face policies. Terms are available with level premium periods of five, ten, fifteen, twenty, and thirty years. The rapid decision term policies are convertible during the first ten years or up to age sixty five, whichever comes first. Also, a full complement of riders is available with the policy which allows the owner to customize the insurance to their specific needs.

Additionally, there is a Rapid Decision Mortgage Term policy which covers the outstanding mortgage balance. Though this policy may have affordable premiums, insurance that merely covers one diminishing debt may not satisfy the needs of beneficiaries or the remaining family members.

Graded Death Benefit Term and Whole Life

These are unique policies designed to provide some level of coverage for less healthy persons. Limited to a quarter million dollars in death benefit, this policy will adjust the death benefit over the lifetime of the policy owner or specified term.

This insurance policy is offered with rapid processing and no exams or testing, simply requiring the insured to answer a few health questions. The Graded policies may be worthy of consideration by those that have experienced health problems or have been declined coverage by other companies.

Hybrid Life Insurance

Fidelity Life’s Hybrid Life policies offer high face value insurance which combines life insurance with accidental death insurance. The policies are decisioned within forty eight hours and the company claims to provide very reasonable rates for the coverage. In some cases the medical exam can be deferred for up to six months. Insured persons can also choose not to undergo medical underwriting, though it is likely that this option will limit the coverage amount.

Worksite and Sponsored Benefits

Fidelity Life can team up with your employer to offer a number of insurance plans. Premiums can be deducted from payroll. They currently offer LifeTime Benefit Term coverage to both the individual and their spouse. This is guaranteed level premium term with coverage through age one hundred twenty. This policy offers simple and fast underwriting.

For those willing to submit to additional underwriting, the company offers Worksite RD Term. With a decision within a few days, the policy will cover the insured up to age ninety four. The Graded Death Benefit Whole Life policy is also available through the Worksite program. The policy can offer protection for the family while adding the benefit of supplementing retirement income. The cash value is accessible through both loans and partial withdrawals.

Summary for Fidelity Life Insurance

Overall, the company is lacking in range of products. Universal insurance, which is flexible and popular, is notably missing from the product line. Additionally, there is no variable insurance. The fast underwriting, no underwriting, and substandard health policy offerings are worth consideration. Many may like the idea of not submitting to medical exams or testing, however it is likely that coverage amounts will be very limited. Nonetheless, some coverage is better than no coverage.

The worksite programs are also an attractive form of insurance. Business owners and individuals alike may appreciate the ability to offer additional employee benefits by payroll deduction. Companies can market the offerings as an added employer benefit and individuals can utilize the simplicity of payroll deductions to pay for coverage.