Fidelity Life Review – Best for Seniors (Not So Great for the Rest of Us)
Life insurance needs often change over a lifetime. Families may want a life insurance policy to cover lost income if a spouse dies, while retirees may want final expense coverage to pay for funeral expenses and medical bills.
Fidelity Life offers those and other types of insurance coverage while making it easy for people 50 and older to buy policies without requiring a medical exam.
What is Fidelity Life?
To start, don’t confuse Fidelity Life with Fidelity Investments. The insurance company isn’t part of the investment company but is owned by Vericity. Vericity also owns eFinancial, an insurance agency that sells Fidelity Life products. Fidelity Life Association was founded in 1896 and is currently based in Illinois.
Some of its policies can be easy to buy because no medical exams are required. The policies are available to a range of ages, from 18 to 65. It doesn’t sell policies in Wyoming and New York.
Don’t expect high coverage amounts for its insurance policies if you don’t take a medical exam because you have underlying health issues or have had problems getting approved for insurance elsewhere.
The Fidelity Life coverage range for a term life insurance policy without a medical exam is $25,000 to $100,000, which is far below the $1 million other insurers offer. Higher term coverage from $50,000 to $1 million is available for terms of 10 to 30 years if a medical exam is taken.
Fidelity Life offers whole life policies, meaning they’re good for a policyholder’s entire lifetime. These also don’t require medical exams. However, the whole life policies are only sold to people 50 and older.
Fidelity Life is best for people who want fast underwriting and no medical exam requirements. Younger shoppers are likely to get better term life coverage than older customers, though that’s true with most life insurance companies.
It sells several types of life insurance for seniors, meaning age 50 and older. These include term life policies with a medical exam and whole life policies up to age 85.
How does Fidelity Life work?
The application process is easy at Fidelity Life. On the homepage and just about anywhere else on the company’s website, click on the purple “Get Started” button.
From there you’ll answer basic questions about yourself and will rate your overall health before seeing what your policy options are.
A 35-year-old woman who is partnered, works full-time, and is in overall good health would see these term life options:
From there you can hit the “Learn More” or “Buy Now” buttons to get a price quote and learn more or make a purchase. If you’re seeking a quote, you’ll have to give more information about yourself, including your name, gender, phone number, height and weight, and if you’ve smoked in the past five years. You’ll then get a price quote.
You may have to finish your quote on the phone with an insurance agent.
If you’re looking for a policy that’s more affordable, the site recommends checking out its accidental death benefit. This extra coverage isn’t meant to be a primary life insurance policy, though people with certain health conditions who don’t qualify for term life or other insurance plans may want to buy this coverage.
How much does Fidelity Life cost?
Fidelity Life’s website advertises rates starting at $15 per month. That low price, however, is for healthy, young people applying for low coverage amounts and lower term lengths.
One reviewer reports that Fidelity Life has much higher prices than the industry average, especially for older people or anyone with chronic health conditions.
It has low coverage amounts, with only one product offering up to $1 million in coverage. For the most part, the benefits it pays are only enough to cover final expenses, medical bills, and other debts.
Its online quote tool doesn’t allow users to select the state they live in, which can affect rates. Potential customers may be better off calling an agent or the company’s customer service hotline for more customized quotes.
|Mutual of Omaha||$22.15|
*Note: The life insurance price quotes are for a 35-year-old woman in overall good health who doesn’t smoke, seeking $500,000 in a term life insurance policy for 20 years. *
Average monthly term life insurance rates
|Term length||$500,000||$750,000||$1 million||$2 million|
Note: This data was collected by Policygenius. It demonstrates the average monthly term life insurance rates by policy size and length. The average rates are for a 35-year-old man, non-smoker, with a preferred health rating.
Fidelity Life features
Fidelity Life has many types of term life and whole life policies, all with various amounts of coverage. Several don’t require a medical exam, and a speedy underwriting process can lead to quick coverage.
Here are some of the features it offers.
Term life insurance
This is the most affordable type of insurance for most people. Most Fidelity Life terms are 10, 15, 20, or 30 years. The premiums stay the same throughout the term period that the policyholder chooses.
Coverage amounts range from $50,000 to $1 million. However, those amount limits drop to $25,000 to $100,000 if no medical exam is required, though applicants will have to answer some health questions.
It offers three types of products:
- RapiDecision Life: Coverage from $50,000 to $1 million for ages 18-65. A medical exam may be required, based on answers to questions on the application.
- RapiDecision Express: Coverage from $25,000 to $100,000 for ages 18-65. No medical exam required.
- RapiDecision Senior Life TTerm: Coverage from $10,000 to $150,000 meant to pay off debt or medical bills, or cover final expenses, for ages 50-70. No medical exam required unless your medical history needs clarifying.
Whole life insurance
Whole life insurance is also called permanent life insurance because it covers you for the rest of your life. It’s more expensive than term life, which covers a certain amount of years, such as the 30 prime working years of an individual.
Fidelity Life offers whole life only to customers 50 and older. No medical exam is required, though you’ll have to answer some health questions and the company looks at publicly available data such as car registration to determine eligibility.
The one standard permanent whole life insurance policy it offers is called RapiDecision Senior Whole Life. Applicants ages 50-85 can get coverage from $10,000 to $150,000. While a medical exam isn’t required, the underwriter could require one during the approval process if it thinks one is necessary.
Partial coverage begins immediately, but full death benefits don’t start until after year three.
Final expense insurance
If you’re 50-85 years old and don’t want term or whole life insurance, you can buy final expense insurance from Fidelity Life that covers exactly what it sounds like: the final expenses of life. Burial costs, medical bills and outstanding debts can be paid under two policies it offers:
- RapiDecision Final Expense: Coverage from $5,000 to $35,000. Answer a few questions about your health and coverage can begin immediately.
- RapiDecision Guaranteed Issue Life: This policy is also for funeral and other expenses upon death. Coverage up to $25,000. The death benefit is reduced in the first three years, but becomes full in year four.
Accidental death benefit
This standalone policy can be bought separately from the other policies, and can be bought on its own if you don’t qualify for another policy.
However, it’s only offered for younger policyholders, from ages 20 to 59.
Coverage ranges from $50,000 to $300,000. Survivors are paid if the policyholder dies from an accidental death.
If you already have a Fidelity Life insurance policy, you won’t need this extra policy because the traditional policies already cover accidental death, along with illness and other circumstances. But if you want an additional payout for a deadly accident, this policy may be worth getting.
Fidelity Life offers many kinds of insurance riders, depending on the policy you buy. Some cost extra because they offer increased benefits. Here are some riders it offers:
- Child term: From $5,000 to $25,000 in term life insurance for the death of children from ages 15 days to 18 years. Coverage ends at age 23 or when the policy term ends, whichever comes first. It can be converted to a permanent plan within 30 days of the expiration date.
- Accelerated death benefit: This death benefit rider allows some policy benefits to be accessed early if you’re diagnosed with a terminal illness. This can be added to a term policy for free.
- Accidental death benefit: This is a rider and is separate from the standalone policy listed earlier. Additional coverage of $50,000 to $250,000 if you die in a car crash or similar event. Available for ages 20-65.
Who is Fidelity Life best for?
People 50 or older in need of whole life
Fidelity Life only sells whole life insurance policies to people 50 and older, so if that’s you then you may want to get a price quote. No medical exam is required, though an insurance underwriter may request one after reviewing public data about you.
People who don’t want to take a medical exam
Many of its policies, especially for seniors, don’t require a medical exam. This can be a good thing if you’ve been turned down by other insurers for having pre-existing medical conditions or a lot of medical bills.
The downside is the amount of coverage is low and the premiums are higher than the industry average.
People who don’t need much coverage
If you’re 50 or older and don’t want much insurance coverage, then Fidelity Life has it. Its term life policies for people up to age 70 provide $10,000 to $150,000 in coverage, which isn’t much compared to other insurers.
Fidelity Life sells whole life policies for people up to age 85, but only at the same coverage levels of its life term policies. The difference is a medical exam is required for term life, but not for whole life insurance.
People who want final expense insurance
Fidelity Life has final expense life insurance at low coverage amounts for policyholders up to age 85.
Its standard policy has coverage amounts from $5,000 to $35,000. No medical exam is required, though a medical questionnaire must be completed.
It also has a guaranteed issue life insurance policy with up to $25,000 in final expense coverage. No medical questions are asked. Applicants must be between ages 50-85. This guaranteed policy costs more than the standard policy, and coverage will be lower in the first few years of the policy.
People who only want an accidental death benefit policy
Fidelity Life sells this as a standalone policy, though it can also be part of its other policies or the extra coverage can be added to an existing policy.
The standalone policy doesn’t require a medical exam so it may be needed if you have health issues that prevent you from qualifying for other types of insurance. High-risk jobs, such as construction workers or pilots, may not be eligible.
Who shouldn’t use Fidelity Life?
People under 50 needing whole life
If you’re young, meaning under age 50 as far as insurers are concerned, and want whole life insurance, you won’t be able to buy it from Fidelity Life. It only sells such policies to people 50 and older.
People who want high coverage amounts
Only one of Fidelity Life’s policies offers $1 million in coverage. Its policies that don’t require medical exams top out at $100,000 in coverage. With a medical exam, term life policy limits increase to $150,000.
Its whole life policies, which are only sold to seniors, max out at $150,000, which is well below what most insurance companies offer.
The young or healthy
If you’re young, or at least healthy, you’ll probably find better rates on premiums at other insurers. You’ll likely find higher coverage and term life insurance that is much cheaper than what Fidelity Life offers.
For most of its policies, Fidelity Life’s payouts cover final expenses. That’s fine if you own your home and your children have graduated from college. But if you’re working and have a family to support, you’ll probably want more life insurance.
Pros & cons
- No medical exams. Its whole life and guaranteed policies don’t require medical exams, especially for people 50 and older. This can be beneficial if you’ve been turned down by other insurers for medical issues.
- Accidental death benefit policy. This standalone policy can pay your family up to $250,000 if you die in an accident.
- Free 30-day trial. Try out your coverage for 30 days and if you’re not satisfied you can cancel and get your premiums back.
- Expensive. Fidelity Life’s rates are higher than the industry standard, especially for older people or those with chronic health conditions.
- Whole life for 50 and older. Younger shoppers can’t buy whole life insurance from Fidelity Life.
- Low coverage amounts. Almost all of its policies only pay what amounts to the final expenses of life, including burial and debts, with a max payout of $150,000.
Fidelity Life vs. competitors
|Insurer||J.D. Power rating||A.M. Best rating|
|Mutual of Omaha||4/5||Cell|
Fidelity Life vs. Mutual of Omaha
Mutual of Omaha also targets whole life insurance policies at older applicants, and it also doesn’t require a medical exam.
Mutual of Omaha has lower guaranteed issue policy death benefits, ranging from $2,000 to $25,000. For a policy where medical questions are asked, the death benefit increases to as high as $40,000.
Fidelity Life has higher death benefits, up to $150,000 for almost all of its policies.
In ratings of insurance companies by J.D. Power, Mutual of Omaha scored better than most. Fidelity Life wasn’t rated at all in the study. Both received high credit ratings from A.M. Best in a measurement of their financial strength and ability to fulfill financial obligations to customers and their beneficiaries, though Mutual of Omaha’s A+ rating was a little higher.
Fidelity Life vs. State Farm
State Farm is regularly ranked highest by J.D. Power and others for overall customer satisfaction. It also receives the highest rating for being able to fulfill its financial obligations from A.M. Best.
While best known for auto insurance, State Farm also sells a range of term life options. Policy benefits begin at $100,000.
Why buy permanent life insurance if I’m young?
Because Fidelity Life only sells whole life insurance, also called permanent life, to people 50 and older, you may wonder why a young person would want this type of insurance anyway.
Term life insurance is much cheaper than whole life, mainly because it only lasts for a certain number of years, such as 30 or 20 years, though a 10-year term is possible. The idea is that your heirs will mostly need an insurance payout during the working years of your life when your earnings are high and they depend on you to pay the mortgage, fund college, and other expenses that a family has.
But permanent life insurance can give you security for the rest of your life. While it’s more expensive than term life, it can be a lot cheaper when you’re young than if you buy it later in life.
Some insurers pay part of the earnings they achieve from investing the premiums of policyholders to their customers who have whole life policies. Also, permanent life policies can be borrowed against and the cash value can be withdrawn when it matches the face value of the policy.
What is universal life insurance?
Fidelity Life also sells universal life insurance, though it doesn’t promote it much on its website.
A universal life policy is more flexible than a whole life policy. It allows premiums and death benefits to be increased or decreased. You can change them as your circumstances change.
How much life insurance should I buy?
A life insurance agent can help you determine how much insurance you need, though you may want to figure this out yourself before talking to a salesperson.
Start by adding up your total debt, mortgage, and annual income. A general rule is that at least five times your annual income should be covered by life insurance.
You may want to provide more than paying off your debts to your family. You may want to leave enough money to pay for your children to attend college, or for your spouse not to have to work for a few years or more. Or you may just want to pay for your final expenses, such as funeral costs.
Will my credit be checked?
A soft credit pull will likely be done by underwriters to check your payment history and to determine your risk as a customer. A soft pull doesn’t have much effect on a credit score.
The bottom line
Buying life insurance should include shopping at various carriers for rates and knowing what your life insurance options are. Chances are you’ll find better rates elsewhere than you will at Fidelity Life.
One of the benefits of buying insurance from Fidelity Life is that you won’t need a medical exam to qualify for most of its policies. This can help if you’ve been denied elsewhere for having medical problems, such as being overweight, a smoker, or having diabetes.
Customers 50 and older can buy life insurance of up to $150,000 in coverage from Fidelity Life. This may be all they need to cover their final expenses, such as funeral costs and debts.
Younger applicants, however, may find better prices at other insurers, especially on term life insurance policies.
Fidelity Life also sells a standalone accidental death benefit policy. This can be worthwhile if you don’t qualify for other types of policies, or you want extra coverage for your family.
Wherever you end up buying life insurance, be sure to shop for the best coverage and premiums. Getting a price quote online or over the phone should only take a few minutes, and you should quickly be able to find a policy that meets your needs and budget.