Fidelity Life Insurance Review

Transparent terms and benefits to protect your family

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Fidelity is a life insurance company that offers term, long-term care, and universal life coverage. Policies from Fidelity can be customized to provide policyholders with additional benefits to meet many financial needs during the lifetime of the policy. In this review, we explore the types of life insurance policies, pricing, financial ratings, customer reviews, and more. Read on to see if Fidelity Life Insurance is the best choice to protect your family.

What We Like

  • Loads of policy information available online

  • Partnered with MassMutual to offer permanent life insurance

  • A nationwide network of local advisors

  • Numerous riders are available to get even more from your policy

  • Policies designed for specific objectives like covering long-term care expenses

What We Don't Like

  • Only two types of universal life policies are available

  • Fidelity doesn’t offer indexed universal life

  • High policy minimums

Company Overview: A Privately-Owned Behemoth 

Fidelity Life Insurance is a division of Fidelity Investments, one of the largest privately-owned financial services firms in the world. Fidelity has been owned by the Johnson family since its founding in 1946 and is headquartered in Boston. The company offers term life insurance as well as multiple types of permanent coverage. It has a unique whole life insurance policy that is designed to cover long-term care costs while a policyholder is alive. 

Available Plans: Transparent Product Guides Available

Fidelity Life Insurance offers term life insurance through an internally underwritten policy. Permanent coverage is available via the universal life options and the long-term care insurance. Both permanent insurance policy types are actually offered from the MassMutual partnership.

Fidelity life insurance offers the following types of coverage:

Term Life

Term life insurance provides policyholders with a set death benefit if something happens to them during a predetermined period of time. Fidelity offers term life insurance in 10-, 15-, and 20-year terms. Coverage is available starting at $250,000 (the industry norm is $100,000) and issue ages vary by term. Fidelity’s 10-year term policies can be issued from age 18 to 70; 15-year term policies can be issued from ages 18 to 65, and 20-year term policies can be issued from ages 18 to 60.

Long-Term Care

Long-term care insurance is insurance that’s designed to cover medical bills and other expenses late in life when you are ill. Most long-term care insurance through other carriers is offered as a living-benefits-only policy that doesn’t pay death benefits. However, Fidelity’s long-term care insurance is structured as a single premium whole life insurance policy with a qualified long-term care insurance (LTCI) rider attached. With this long-term care coverage, policyholders can get benefits necessary to cover their expenses as they age. 

Only one long-term care policy is available from Fidelity through MassMutual:

  • MassMutual CareChoiceSM One: Fidelity’s long-term care policy provides monthly long-term care benefits that are paid as an acceleration of the death benefit. These benefits do two things: reduce the death benefit payable and reduce any policy surrender value. Policies are available from ages 35 to 69 and the minimum death benefit is $25,000.

Universal Life

Universal life insurance is a type of permanent coverage that, in addition to paying a death benefit, has a cash value component that grows over time. The cash value of a universal life policy can grow at a set rate or it may be tied to a stock market index (some other market indicator). Universal life from Fidelity is another form of permanent coverage that stays in force as long as premiums are paid. These policies also build cash value that can be accessed while you're still alive. Both of these policies provide lifetime guaranteed death benefits. 

Fidelity offers the following two MassMutual universal life insurance products: 

  • MassMutual UL GuardSM: The UL Guard product is available from age 0 to 85. Policies have a $100,000 minimum death benefit and are typically used to help to replace lost income, cover final expenses, or transfer wealth to kids or grandkids.
  • MassMutual SUL GuardSM: Survivorship universal life policies also have a minimum of $100,000 and are available from age 18 to 85. These policies insure two lives and pay death benefits when the second named insured passes away.

Available Riders: Great Add-ons for Permanent Policies

Life insurance riders are features that can be added to policies in order to provide benefits that aren’t normally included. Fidelity offers a number of optional add-ons for policyholders looking to get more from their coverage. Not all riders are available with all policy types; for example, we could find no riders available for term life policies.

Fidelity Life offers the following riders on permanent insurance policies:

Qualified Long-Term Care Insurance Rider

A long-term care insurance (LTCI) rider is automatically included as part of all long-term care policies. Essentially, the LTCI rider is what transforms Fidelity’s whole life policy into a long-term care policy. These riders allow policyholders to access a portion of their cash value to help cover long-term care expenses.

Accelerated Death Benefit (ABR)

Accelerated death benefit riders are available with Fidelity’s universal life policies. These riders allow policyholders to access part of their death benefit early if they’re diagnosed with a terminal illness.

Substitute of Insured (SIR)

Substitute of insured riders can be added to Fidelity’s universal life policies and allow policyholders to change the name of the insured on their policy. A policyholder may want to exercise this option if, for example, their spouse’s health declines unexpectedly.

Waiver of Specified Premium (WSP)

The waiver of specified premium rider is only available with Fidelity’s UL Guard policies. This rider allows customers to skip their premium payments if they become disabled or are diagnosed with a chronic illness.

Estate Protection (EPR)

Estate protection riders are only available with Fidelity’s survivorship universal life policies. This rider provides extra protection if estate taxes are assessed after the death of the insureds to covers the additional tax liability.

Policy Split Option (PSO)

Policy split option riders are only available with survivorship UL policies. This rider allows married policyholders to split their policy if they get divorced or meet certain other criteria.

Customer Service: A Nationwide Network of Local Advisors

Life insurance customers who need assistance from Fidelity can get 24-hour customer service by calling their general line at 877-412-8765. The company also offers separate lines for each product type. For example, existing term life customers can call 888-343-8376, extension 3, between 8 a.m. and 8 p.m. Eastern Monday through Wednesday or between 8 a.m. and 5 p.m. on Thursday or Friday. Fidelity also has a nationwide network of local advisors that can assist customers with most issues.

Customer Satisfaction: Mixed Reviews

Fidelity is not accredited by the BBB accredited and has a C- rating, with more than 70 registered customer complaints for reasons such as payment problems. Despite this negative review, Fidelity is very well-rated by numerous other sites and receives may positive reviews online.

Financial Strength: Sound Ratings All-Around

Fidelity Life has strong financial ratings. The company is rated A+ by A.M. Best and A+ by S&P. Fidelity also offers universal and long-term care policies from MassMutual, which has an A++ rating from A.M. Best. Customers can feel confident that Fidelity has the financial strength to provide beneficiaries with the death benefits promised by the policy.

Cancellation Policy: Standard Fees Apply

To cancel a Fidelity term life policy, all you have to do is stop paying premiums. Long-term care and universal life policies, however, do have surrender charges that vary by policy and change over the life of the policy. With universal policies, surrender charges apply for the first 20 years of the policy and may decrease the value of the policy substantially depending on how early the policy is surrendered and whether all or a part of it is surrendered. These surrender charges are credited against cash value when policies are canceled.

Price: Competitive Given High Policy Sizes

Fidelity has an online tool for quoting term life insurance that is quick and easy to use. The tool let’s prospective customers get a good idea of what term life insurance will cost them after entering just a little information and picking the anticipated health class.

Below are sample premiums for $250,000 in term life coverage on a 10-year term for customers in standard health:

Competition: Fidelity Life vs. Mutual of Omaha

Both Fidelity and Mutual of Omaha are very reputable national life insurance providers. Both companies have A+ ratings from A.M. Best and offer three main types of insurance. While Mutual of Omaha has an A+ rating from the BBB, Fidelity has a C- rating. Additionally, rates for life insurance from Mutual of Omaha are considerably lower than rates from Fidelity for similar coverage.

If you want to get the lowest rates for term life insurance, choose Mutual of Omaha. If it’s important for you to have access to a nationwide network of local advisors, go with Fidelity.

Final Verdict: Know Exactly What You’re Getting

Fidelity Life is a large national life insurance that offers three types of insurance. In addition to its own term life coverage, Fidelity also offers universal and long-term care policies from MassMutual. Fidelity has great ratings for financial security, although customer reviews are mixed. Nevertheless, the company makes loads of information about its life insurance products available online including pricing, rider options, and policy explanations. This makes Fidelity Life an ideal choice for customers who want to know exactly what they’re getting.

Specs

Article Sources

  1. Fidelity. "Our Heritage." Accessed March 24, 2020.

  2. Fidelity. "Life Insurance Overview." Accessed March 24, 2020.

  3. Fidelity. "Term Life Insurance." Accessed March 24, 2020.

  4. Fidelity. "Long Term Care Coverage." Accessed March 24, 2020. 

  5. Fidelity. "Long Term Care." Accessed March 25, 2020.

  6. Fidelity. "Universal Life Insurance." Accessed March 24, 2020. 

  7. Fidelity. "Contact Us." Accessed March 24, 2020.

  8. BBB. "Fidelity Investments." Accessed March 24, 2020.

  9. AM Best. "A.M. Best Affirms Ratings of MassMutual." Accessed March 25, 2020.

  10. Fidelity. "Term Life Insurance Quote Tool." Accessed March 24, 2020.