Fidelity Life Insurance Review

Transparent terms and benefits to protect your family

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Fidelity

Fidelity

overall rating
3.0

Our Take

Fidelity Life Insurance is an insurance division of Fidelity Investments. The company has great ratings for financial stability, although customer satisfaction reviews are mixed. They offer a good core line-up of life insurance companies including long-term care and universal life. While Fidelity’s costs align with industry norms, the company does an excellent job of making policy details available online, so customers know exactly what they’re getting.

Based on our review of more than two dozen life insurance companies, Fidelity Life Insurance was not one of the best companies we found. To see other options that may be better, visit our list of the best life insurance companies.

  • Pros and Cons
  • Key Takeaways
  • Specifications
Pros and Cons
Pros
  • Decent amount of policy information available online

  • Partnered with MassMutual to offer permanent life insurance

  • A nationwide network of local advisors

  • Hybrid life insurance and long term care policy

Cons
  • Only two types of universal life policies are available

  • Fidelity doesn’t offer indexed universal life

  • High policy minimums

Key Takeaways
  • Canceling term life from Fidelity is easy: just quit paying premiums. Permanent policies, however, may have surrender charges. 
  • Fidelity is a private, family-owned business based in Boston. 
  • Fidelity has partnered with MassMutual to offer permanent life policies.
  • Fidelity offers both term and universal life, but not whole life or indexed universal policies.
  • Fidelity’s online quote tool makes it easy to get a pricing estimate.
Specifications
  • Year Founded 1946
  • Term Life Quotes Available Online
  • Kinds of Plans Term, universal, long-term care & permanent life hybrid
  • Number of Plans Six
  • Payment Plan Options Vary by plan type but most include monthly, annual, and semi-annual payment options
  • Official Website https://www.fidelity.com/

Fidelity is a life insurance company that offers term, long-term care and permanent life hybrid, and universal life coverage. Policies from Fidelity may offer further options for customization than what is shown online. If you're interested, we recommend asking an agent for details. This review explores the types of life insurance policies, pricing, financial ratings, customer reviews, and more. Read on to see whether Fidelity Life Insurance is the best choice to protect your family.

Learn more: Read our life insurance methodology to see how we rated each company.

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 hybrid policy that combines long-term care insurance with whole or universal life.

Available Plans: Transparent Product Guides Available

Fidelity Life Insurance offers term life insurance through an internally underwritten policy. Permanent coverage is available via universal life options and hybrid life insurance with long-term care insurance. The universal life policies are offered through MassMutual, and the hybrid policy has two versions, one from MassMutual and one from New York Life.

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 18 to 65, and 20-year term policies can be issued from 18 to 60.

Hybrid Long-Term Care and Permanent Life

Long-term care insurance is designed to cover medical bills and other expenses late in life when you are ill. Through other carriers, most long-term care insurance is strictly for long-term care and is not life insurance with a death benefit. However, these hybrid policies offered by Fidelity are permanent life insurance and long-term care coverage in one policy. There are both whole and universal life versions available. It's like getting a long-term care rider automatically attached to your life policy.

Three hybrid life insurance & long-term care policies are available from Fidelity through MassMutual and New York Life:

  • MassMutual CareChoice One: This hybrid whole life and long-term care policy from MassMutual is offered by Fidelity and provides monthly long-term care benefits that are paid as an acceleration of the death benefit. These benefits 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. This policy pays dividends, and the cash value is protected from inflation. The policy is a single premium policy, so the policy must be paid up in one payment.
  • MassMutual CareChoice Select: This hybrid whole life and long-care policy is similar to CareChoice One, but the premiums are payable over 12 years rather than all at once. This means you don't have to come up with a large sum of money all at once to get the policy. The other main difference is the minimum face value amount varies and is not locked at $25,000. Other policy features are the same.
  • New York Life Asset Flex: This policy is a hybrid between long-term care and universal life. Like with the MassMutual whole life versions, taking long-term care benefits reduces or can even eliminate the death benefit that your beneficiaries will receive. The long-term care coverage is available from your choice of two to seven years of benefit payments. The minimum face value is $10,000, and the policy is issued to those with ages 30-75. Premiums are payable all at once, over five years, over 10 years, over 15 years, or until you reach age 65.

Fidelity has an online quote tool for term life that’s quick and easy to use.

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. Universal life from Fidelity is another form of permanent coverage that stays in force for life, 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 Guard: The UL Guard product is available from age 18 to 85. Policies have a $50,000 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 Guard: 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 to provide benefits that aren’t normally included. Fidelity offers several 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 can call 877-412-8765 with life insurance questions. The company also has a customer service number, 800-343-8376, where the menu can direct you to someone who can help with life insurance. Fidelity also has a nationwide network of local advisors that can assist customers with most issues.

Fidelity has an A+ rating from the BBB, but isn’t accredited.

Customer Satisfaction: Mixed Reviews

Fidelity is not accredited by the BBB accredited, but it does have a A+ rating. On the other hand, it has 559 customer complaints in the last three years. Despite these complaints, 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. Fidelity also offers universal and hybrid whole life & long-term care policies from MassMutual, which has an A++ rating from AM 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 19 years of the policy and may decrease the policy's value substantially depending on how early the policy is surrendered and whether all or a part of it is surrendered. These surrender charges are taken from the 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 lets 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. Fidelity's term coverage has a high minimum and maximum. Taking this into account, the prices seemed competitive.

Competition: Fidelity Life vs. Mutual of Omaha

Both Fidelity and Mutual of Omaha are very reputable national life insurance providers. Both companies have an A+ from A.M. Best. Mutual of Omaha does not offer hybrid policies, but it does offer regular whole life policies in addition to term and universal life. Both companies have an A+ rating from the BBB. 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 you need to have access to a nationwide network of local advisors, go with Fidelity.

  Fidelity Mutual of Omaha
A.M. Best Rating A+ A+
BBB Rating A+ A+
Number of Types of Coverage Available Three Four
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 hybrid long-term care policies from MassMutual and New York Life. Fidelity has great ratings for financial security, although customer reviews are mixed. The company makes a decent amount of information about its life insurance products available online, including policy explanations and pricing for term life. This makes Fidelity Life an ideal choice for customers who want to know exactly what they’re getting.

Methodology

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

Article Sources

The Balance requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy .
  1. Better Business Bureau. “Fidelity Investments.” Accessed Aug. 31, 2021.

  2. BBB. "Fidelity Investments." Accessed Aug. 31, 2021.

  3. AM Best. "A.M. Best Assigns Ratings to Fidelity Investments Life Insurance Company and Its Subsidiary." Accessed Aug. 31, 2021.

  4. Business Wire. “AM Best Affirms Credit Ratings of Massachusetts Mutual Life Insurance Company and Its Subsidiaries.” Accessed Aug. 31, 2021.

  5. Businesswire. "AM Best Affirms Credit Ratings of Mutual of Omaha Insurance Company and Its Subsidiaries." Accessed Aug. 31, 2021.

  6. Better Business Bureau. "Fidelity Investments." Accessed Aug. 31, 2021.

  7. Better Business Bureau. “Mutual of Omaha Companies.” Accessed Aug. 31, 2021.