American Fidelity Assurance Company Life Insurance Review

Portable coverage with customization options and education for employees

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American Fidelity

American Fidelity

Our Take

American Fidelity Assurance Company offers term and whole life coverage as part of a voluntary benefits package for employees. If your employer offers supplemental life insurance coverage through American Fidelity Assurance Company, the portability and customization options make the company a good choice for your life insurance needs. 

  • Pros and Cons
  • Key Takeaways
  • Specifications
Pros and Cons
Pros
  • A+ (Superior) financial strength rating from A.M. Best since 1982

  • Policies are portable if you leave your employer

  • No medical exam required

  • Customized plans developed by career account managers

  • Online and mobile app claims

  • No waiting periods

Cons
  • No online quotes or pricing estimates

  • Limited policy information available online

  • Mixed customer service reviews on third-party websites

  • No direct individual coverage

  • No universal policies available

Key Takeaways
  • American Fidelity Assurance Company is a private, family-owned company that has been in business since 1960. 
  • American Fidelity’s account management team provides year-round employee support, acting as an extension of an employer’s human resources team and delivering free education and resources.
  • You can get coverage through your employer with only three health questions and a medical exam is never required.
Specifications
  • Year Founded 1960
  • Kinds of Plans Term life, whole life
  • Number of Plans 2
  • Payment Options Paycheck deductions
  • Official Website https://americanfidelity.com/

Introduction

American Fidelity Assurance Company offers term and whole life coverage as part of a voluntary benefits package available through employers. Plans come with robust support, portability, and customization options. We researched American Fidelity’s financial stability rating, customer satisfaction indicators, online tools, policy options, available riders, and customer service reviews to help you compare the life insurance policy options that American Fidelity offers with the competition. 

Company Overview

American Fidelity Assurance Company was founded in 1960 and is headquartered in Oklahoma City, Oklahoma. The company has more than one million policyholders through 9,000 employer groups and provides coverage in 49 states and the District of Columbia. American Fidelity is not licensed in the state of New York. 

Policies are sold through employers and payments are deducted from your paycheck. The company has an account management team that delivers year-round support and education for employees. You can’t get a quote online, but a career account manager will go over your coverage and customization options with you by phone. 

Available Plans

American Fidelity Assurance Company offers both a term and whole life insurance plan. Both plans are customizable and portable, though limited policy information is available online. It’s possible to purchase both a whole life insurance policy and additional term coverage.

AF Term Life Insurance

Term life insurance provides coverage for a specific period of time, either 10, 20, or 30 years. Term life insurance is designed to protect your beneficiaries when their financial needs are greatest, such as while a mortgage is being paid. Term life premiums are locked in for the duration of the term, and customization options are available. 

American Fidelity’s website does not disclose the specific details of its term life insurance coverage.

AF Whole Life Insurance

An American Fidelity whole life insurance policy offers a guaranteed cash benefit until age 121. Premiums remain level for the life of the policy and there is a cash value accumulation component that allows for loans against the policy. American Fidelity’s website does not specify what face values are available. 

Policy details for American Fidelity are vague online and you will need to contact an agent for details including age limits, face values, pricing, and riders.

Available Riders

Riders or endorsements are add-ons to a life insurance policy that can help you customize your coverage. For example, living benefits riders can get you access to a portion of your death benefit while you’re still living if you qualify based on certain circumstances. 

American Fidelity Assurance Company claims to offer a variety of customization options, but the company does not specify online which riders are available. 

Customer Service: Year-Round Support

When you sign up for an American Fidelity life insurance policy, a career account manager will be available to answer all initial and ongoing questions. The customer service team is available Monday through Friday, 7 a.m. to 7 p.m. CST and can be reached at 800-662-1113 or via online form

There’s no live chat, but there is a video library of tutorials explaining how to do everything from preparing for enrollment to filing a claim. 

Customer Satisfaction: A Few Complaints

American Fidelity Assurance Company is not rated in J.D. Power’s 2020 U.S. Life Insurance Study. However, the company had zero complaints in the group life category and four complaints in the individual life category with the NAIC in 2020.

The NAIC is an insurance industry rating agency that assigns companies a score based on the number of complaints and percentage of market share. An average score is 1, with numbers below one indicating a lower number of complaints and figures above one indicating a higher number of complaints.

For the individual life category, the complaint index was 1.47, which shows a slightly higher number of complaints than expected given the company’s size. Complaints have been trending upward over the last few years. 

American Fidelity makes up a small share of the life insurance market, so it only takes a few complaints to result in a complaint index higher than 1 with the NAIC.

Financial Strength: A+ (Superior)

When choosing an insurance company, it’s important to check its financial strength rating with AM Best, an independent rating agency focused on the insurance industry. A good score tells you that a company is financially stable and will be able to pay claims in the future. 

American Fidelity Assurance Company has an A+ (Superior) rating from AM Best, which is one of the highest scores a company can get. 

Cancellation Policy: Not Stated

American Fidelity does not state their cancellation policy for life insurance plans, but the law requires at least a 15-day free-look period (30 days in some states). That means you can cancel a life insurance policy within 15 days and receive all paid premiums returned to you. If you cancel after that point, you won’t receive a refund for your term life insurance policy premiums, but you could get some money returned from a whole life insurance policy if it has accrued cash value. 

Keep in mind that these policies are portable which means that if you leave your employer, you can always take your American Fidelity life insurance policy with you.

Price of American Fidelity Life Insurance: Ask a Rep

American Fidelity Assurance Company doesn’t offer online quotes or pricing estimates. A career account manager will discuss your individual life insurance needs with you and give you an accurate quote based on a few health questions. 

How American Fidelity Assurance Company Compares to Other Life Insurance Companies

American Fidelity Assurance Company doesn’t offer life insurance plans directly to individuals, so the company will only be an option for you if your employer offers the benefit. American Fidelity has fewer plan options than most other companies, but it’s easier to get coverage since the company does not require a medical exam and only asks a few health questions. 

American Fidelity Assurance Company vs. Northwestern Mutual Life Insurance Review

American Fidelity and Northwestern Mutual both have Superior financial strength ratings from AM Best. Both companies are vague about details online, so you’ll need to call to get support. There are also several key differences between these two life insurance companies:

  • Northwestern Mutual offers 17 different plans, including universal policies, while American Fidelity only offers one term and one whole life plan.
  • Northwestern Mutual is highly rated in J.D. Power’s 2020 U.S. Life Insurance Study, while American Fidelity is not rated.
  • Northwestern Mutual has a strong history of paying dividends, while American Fidelity does not. 

If you’re getting a quote from American Fidelity Assurance Company, it’s a good idea to compare pricing to another company like Northwestern Mutual, which offers more options for coverage. 

Read our full Northwestern Mutual review

American Fidelity Assurance Company vs. State Farm Life Insurance Review

Both American Fidelity and State Farm have superior financial strength ratings from AM Best and have customizable policies, though State Farm provides more details about its riders online. Other key differences include:

  • State Farm offers eight different plans and an extensive list of riders, including living benefits, while American Fidelity only offers one term and one whole life plan.
  • State Farm was the top-rated company in J.D. Power’s 2020 U.S. Life Insurance Study, while American Fidelity was not rated.
  • State Farm sells policies directly to individuals, while American Fidelity does not.
  • State Farm offers online quotes for term life insurance, while American Fidelity does not.

State Farm is the better choice here because of the greater variety of options and the company’s top-ranking for customer satisfaction, but it’s still a good idea to get a quote from both companies if your employer is offering a benefit through American Fidelity Assurance Company.

Read our full State Farm review for more information.

Insurer  Financial Strength Rating (AM Best) Customer Satisfaction Rating (J.D. Power)   Number of Available Plans
American Fidelity  A+ Not rated 2
Northwestern Mutual  A++  4th  17 
State Farm  A++  1st 
Final Verdict

American Fidelity offers limited policy information online and no pricing estimates, so it’s important to call for a quote and learn about the customization options. While American Fidelity is financially strong and provides great resources for policyholders, indicators of customer satisfaction aren’t as high as at other companies. You may be better served with an individual life insurance policy from a company like State Farm or Northwestern Mutual. Additionally, if you’re looking for a universal life insurance policy, you’ll need to look elsewhere.

Methodology

All of our reviews of life insurance companies are based on extensive research and analysis of each company based on offerings, customer service, financial stability, cost, and more. For each company, we compared the life insurance products offered, as well as available features, and reported customer experiences. Visit our life insurance review methodology for the full breakdown of what we evaluated for over two dozen companies.