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Fidelity Life Insurance Review 2020

Sept. 24, 2020
Insurance, Life Insurance
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own.

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At a glance

  • Some policies don’t require a medical exam.
  • Many coverage options for people over 50.
  • Gets far more than the expected number of complaints for a company of its size.
Shopping for life insurance during the pandemic? Be aware that insurers may have changed their products and policy applications. For the latest information on how to cope with financial stress during this emergency, see NerdWallet’s financial guide to COVID-19.

Fidelity Life Association is a 124-year-old life insurer based in Illinois. It’s owned by Vericity, which also owns eFinancial, an insurance agency that sells Fidelity Life products. The company offers a range of term products and a few permanent options aimed at seniors.

Fidelity Life insurance

2.5 NerdWallet rating

Fidelity Life earned 2.5 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account complaint data from the National Association of Insurance Commissioners and financial strength ratings from A.M. Best.

Fidelity Life insurance policies

Fidelity Life offers a series of life insurance products under its RAPIDecision branding. The company’s standard product range is available for people ages 18 to 65 and includes:

Fidelity Life also sells several types of life insurance for seniors. These products are meant for people ages 50 and over and include:

  • Term life policies designed for people up to age 70 who want $10,000 to $150,000 in coverage and terms between 10 and 30 years. A medical exam may be required.
  • Whole life insurance policies for people up to age 85 who need between $10,000 and $150,000 of coverage. There’s no medical exam required, but you’ll need to answer some health questions and the company will look at publicly available data (like your car registration) to determine your eligibility.
  • Final expense life insurance policies with relatively low coverage amounts for people up to age 85. Fidelity offers a standard final expense policy with coverage amounts of $5,000 to $35,000 and a guaranteed issue life insurance policy that tops out at $25,000. The standard policy requires you to fill out a medical questionnaire, but there’s no exam. Your price and approval will be based on your health. For guaranteed issue policies, Fidelity Life doesn’t ask any medical questions and, as long as you’re between 50 and 85, you’re guaranteed to get approved. However, you’ll pay more for the luxury of guaranteed issue, and coverage will be lower in the first few years of the policy.

Some life insurance products from Fidelity Life have optional riders, including:

  • Accelerated benefit, which allows you to access some of your life insurance value before you die, if you’re diagnosed with a terminal illness or have a short time to live.
  • Child life insurance, which adds a relatively small amount of coverage for your children until your policy expires or they turn 23.
  • Accidental death, which increases the payout of your life insurance policy if you die in a covered accident. Details vary by insurer, but these riders usually cover car accidents, heavy machinery accidents and the like. You probably won’t be covered if you die while breaking the law or engaging in a high-risk activity like skydiving.

» MORE: Compare life insurance quotes

Fidelity Life customer complaints

Over three years, Fidelity Life has drawn far more than the expected number of complaints to state regulators for a company of its size, according to a NerdWallet analysis of data from the National Association of Insurance Commissioners.

More about Fidelity Life insurance

Fidelity Life also offers stand-alone accidental death coverage, which is basically a life insurance policy that pays out only if you die in a covered type of accident. Riders for this product can extend its coverage to your family, increase your benefit value to offset the impact of inflation or return part of your premium if your coverage term ends before you die.

Methodology: Life insurance ratings

NerdWallet’s life insurance ratings are based on weighted averages of complaint index scores from the National Association of Insurance Commissioners for individual life insurance, and financial strength ratings from A.M. Best, which indicate a company’s ability to pay future claims. To calculate each insurer’s rating, we adjusted the NAIC and A.M. Best scores to a curved 5-point scale.

These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews.

Methodology: Insurer complaints

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2016-2018. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

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