Nobody wants to dwell on thoughts about their own mortality. But a little bit of preparation should be undertaken so your family can be prepared should a worse-case scenario occurs.
When you do choose life insurance, especially a non-med policy, you want nothing but the best no exam life insurance company you can get, right?
Life insurance is the best way to protect your family from undue financial hardship in the event of your unexpected death. Because life insurance is so important, you want to purchase a policy only from a reputable, qualified life insurance company.
Our Review of the Fidelity Life Association Insurance Company
The Fidelity Life Association Insurance Company is one of the largest and most popular life insurance companies in the world. The story about their beginnings in Illinois is both interesting and unique.
Today, they offer a variety of insurance and financial products aimed at middle-income, everyday Americans. But is this a company you can trust with your family’s financial security? We took a look at the products, customer service and history of the Fidelity Life Association Insurance Company. Our complete review is below:
Fidelity Life Product Line
Fidelity offers a flexible line of individual life insurance products. They have products suitable for individuals of any age, health status or budget. Their individual life insurance products include the following:
Rapid Decision Express
This is a level death benefit term policy which provides coverage up to the age of 95. No medical exam is required, so this coverage can be purchased and implemented very quickly. Even the application process is easy with Fidelity’s “Rapid App” application process.
Rapid Decision Senior Life Term and Whole Life
Are you between the ages of 50 and 85? These flexible life insurance options are worth looking into. Each plan provides life insurance protection for up to $150,000. Additionally, these plans include the following key features:
1. Rapid Decision Final Expense
This coverage reduces the burdens associated with final expenses. These can include a burial plot, headstone, memorial service and even transportation rental. Today’s funerals can easily cost over $1,000. This policy allows save your family money. Plus, pre-arrangements help prevent family stress, too.
No medical exam is required. The approval is based on a health questionnaire. Policy coverage amounts go up to $35,000.
2. Rapid Decision Guaranteed Issue
Similar to the Final Expense plan, the Rapid Decision Guaranteed Issue offers up to $20,000 for funeral arrangement expenses. Not only is there no medical exam, there are also no medical questions to answer on the application.
The ease of purchasing this policy does have a slight downside. In order to receive full death benefits, the insured must hold the policy for at least three years. Still, funeral costs can be expensive, even for a relatively low-key funeral. Often purchasing a policy makes financial sense even for a senior.
Coverage Limits by Age and Health
Life insurance coverage is based on the age and, in some cases, the health of the individual buying the policy. The policies of Fidelity Life do not require a medical exam. Most policies offered do ask basic health questions, however. Your medical records will usually need to be provided as well.
Availabilty by Age
- 45 years of age or younger – up to $250,000 on a 30 year term
- 55 years and younger – up to $200,000 on a 20 year term
- 70 years or younger – up to $50,000 for a 10 year term
All standard policies include an Accelerated Death Benefit. A portion of the settlement can sometimes be paid out before death occurs. This can happen when the policyholder is diagnosed with a terminal illness. The policy may also pay out if the policyholder is determined to need long-term care.
Payments are made in a lump sum or installments. The idea is to keep the policyholder ahead on medical bills. Accelerated Death Benefits are a relatively new product in the insurance market. They’re often a great option for many people 50 and up.
If You Don’t Qualify for the Rapid Decision Term product…
…don’t despair. Not everyone can. But Fidelity Life Association still has Graded Benefit Term policies. These pay only a portion of the death benefit if the death occurs within the first three years of the policy. The portion paid out is equal to your premiums paid in up to that point, plus interest. After three years, the full policy will be paid out if an event occurs.
Additional Benefits Offers
Worksite and Sponsored Benefits
Fidelity has a long history of providing worksite and sponsored benefits. Coverage is available for employees, their spouses and children. Children are covered under a separate rider.
Worksite employees need to be between 16 and 70 years old. The maximum amount of coverage for each employee is $250,000, as determined by case underwriting guidelines. The term extends through the age of 120 on a guaranteed level premium basis.
(A quick note: Obviously, most people don’t live to be 120 years old. Listing the age limit as 120 is a standard practice in the life insurance industry. This puts an actual number down legally as a way to also denote a lifetime policy.)
The employee’s spouse is allowed to purchase up to 50% of whatever insurance the original policyholder is eligible for. All employees are allowed to customize their coverage with additional riders. In fact, customizable coverage is a hallmark of Fidelity Life Association. Some of the available riders include:
- Accidental Death
- Dependent Child
- Waiver of Premium
- Accidental Death Benefit for Long-Term Care
Plans cost as low as $12 a month. This premium is guaranteed by Fidelity not to change.
Background Information Fidelity Life Insurance Company
The Fidelity Insurance has a long and interesting history. They first began in 1896. That time frame puts them in the same company as many other original U.S. insurance companies.
What makes Fidelity interesting is that they originally started as a fraternal benefit society. Their original name – and we do mean original – was the Mystic Workers of the World.
But this wasn’t some spooky secret society, at least as far as we could determine. Instead, they were attempting to offer a new, more practical insurance product to people in the Northern and Midwest states.
Up until that time, insurance in those areas had been provided by insurance companies located on the East Coast. The products they offered, and the customer service they provided, didn’t really match the budgets and needs of people in Illinois and surrounding states.
By 1908, the company had changed their name to Fidelity Life. They were headquartered in Des Plains, Illinois. This is actually where their headquarters is still located today.
The company grew steadily. From 50,000 policy holders in 1908 to over $100 million worth of life insurance sold in 1915.
The company impressively thrived even during hard economic times. During the late 1920’s they managed to increase their assets by nearly 100%.
The Modern Era
Fidelity Life operated smoothly and successfully for decades. When they entered the modern era, they slightly changed their business model to keep up with modern times. In 2007, they became a stock insurance company.
This increased their operational flexibility, capital and their ability to affiliate with other insurers.
Today they’re larger than the founders likely ever dreamed. In 2014, the last year available, Fidelity Life’s financials included:
- Total assets of $411 billion
- Statutory capital and surplus of $134.7 billion
- Net life insurance premiums of $459.9 billion
- Face amount of life insurance in force of $28.4 billion
All insurance companies in the United States are rated by various rating agencies for overall financial health. Fidelity is considered to be financially strong and stable. A.M. Best rated Fidelity Life an A-. This is a strong financial rating from the leading provider of insurer ratings.
Fidelity Life also has an A+ rating from the Better Business Bureau. They offer many ways for customers to contact them directly for questions or to file a claim such as phone, email, website and social media.
What We Like
Overall, the Fidelity Life Association Insurance Company has a solid financial foundation with a proven record of reliability. At the same time, their history shows they’re able to adapt to changing times in order to find success. From their beginnings as an alternative to East Coast insurance companies through their switch in 2007 to a stock insurance company, Fidelity Life has always shown their commitment to identifying and solving the needs of their customers.
Their prices are very competitive. They’re a very solid choice for the average middle-income family looking to purchase health insurance. Although they started in the Midwest, today they have a proven track record providing insurance policies to families all across America.
What We Think Could Improve
They’re a large company. They currently hold over $25.6 billion in life insurance. Even today they’re growing. This is great for financial security.
There are some concerns about customer service, however. Today they seem to be able to keep up with demand. There are several ways to access a customer service agent including phone and email. As the company grows – and every indication is that the company will continue to grow – hopefully they’ll still be able to respond to claims and other issues quickly and with care.
Who would’ve thought an organization originally called the “Mystic Workers of the World” would have eventually become one of the most mainstream, family-oriented life insurance companies in the country? Today, Fidelity Life is an excellent choice for a variety of life insurance and financial services.
They offer policies for any age and health level. You might not need to take a medical exam or even have to answer any health questions at all. You can also customize your policy to best fit your specific situation.
Life insurance is an important aspect of planning for your family’s overall health and security. While we always encourage you to shop around for the best solution to your needs, there’s a lot to like about the life insurance products at Fidelity Life Association Insurance Company.