There’s nothing wrong with the American Fidelity Life Insurance Company – but there’s nothing that makes it stick out either.
They offer solid products, numerous additional features, and decent customer support, but fail to do it in a unique way.
Simply put, if you’re not already interested in this life insurance provider, they’re very easy to overlook.
That’s not necessarily a bad thing though.
On the flip side of American Fidelity, some companies go overboard attempting to stand out.
But, is American Fidelity the right choice for you?
Our thorough American Fidelity Life Insurance Company review answers both of these questions and more.
American Fidelity Life Insurance Company Review
There are a number of characteristics that make American Fidelity what it is. These key details to remember include:
- Focus on military families
- Underwrite for SGLI
- Founded in 1956
These details tell you a few main things about American Fidelity: they’ve been around for a long time and have an emphasis on helping military members and their families.
Indeed, American Fidelity was founded by a WWII veteran in 1956. Charles Woodbury created the company after he noticed a lack of life insurance and financial planning companies catering to military members.
The life insurance company still places an importance on militaries to this day, although they also provide coverage to those not affiliated with the military.
Another interesting detail to note is that the team of underwriters at American Fidelity also underwrite for SGLI, Servicemembers Group Life Insurance.
Key Details for American Fidelity
As demonstrated by their creation as a life insurance company for military families, American Fidelity is all about serving those in uniform.
Similar to USAA, the high focus on military families allow them to focus and specialize on one key niche within the market, and truly cater to their unique needs.
The life insurance provider is still committed to providing the best coverage and rates possible to military members and their families.
Over time, the company has expanded this focus to include the rest of the population.
They now offer great quality service that benefits non-members of the military as well.
In addition, American Fidelity strives to provide simple, straightforward service. They don’t take a complex approach to life insurance, instead preferring something more traditional.
Though they do provide a selection of products, these are all quite simple in nature. They’re adequate, but don’t do anything fancy (and certainly nothing gimmicky).
The intuitive nature of both American Fidelity products as well as their website and application process makes them a great choice for those that want something – not something with all the bells and whistles.
What Makes American Fidelity Life Unique
Perhaps the most unique aspect about American Fidelity is their generous approach to serving military families.
Not only do they offer military members some of the best rates around, their coverage is specifically designed with several features that benefit those in uniform.
Beyond this, American Fidelity is unique in the number of policy options they offer. Though each policy is relatively simple and straightforward, the selection of coverage types is a nice touch.
These coverage types include
- Future First Universal Life Insurance – Flexible premiums and a death benefit that can be adjusted according to your needs. Comes with cash accrual element.
- Flexible Dollar Builder Whole Life Insurance – Whole life insurance with a guaranteed death benefit on 10-pay, 20-pay, or level plan.
- Traditional Whole Life Insurance – Basic whole life insurance available to those under 60 years old.
- Twenty Pay Graded-Benefit Whole Life Insurance – A graded policy that pays out all premiums in first two years (plus 10%) with full death benefits available after two years.
- Term Life Insurance – Fixed premium and set death benefit for fixed period of time, usually 10, 20, or 30 years.
- Group Insurance – An option for employers looking to buy life insurance for their employees.
Additional features are also available that enable you to further tailor these policy types to your personal preferences.
Their Application Process
American Fidelity Life Insurance Company has designed their application with ease of use in mind.
The entire application is simple and straightforward. It takes less than 15 minutes to apply for traditional coverage.
Of course, you should be prepared to answer several questions.
These questions are based around topics such as your:
- Overall health
- Diseases or illnesses
- Family health history
- Lifestyle (smoking and drinking)
- Work and activities
Your answers to these questions are what the underwriters at American Fidelity use to assess your overall risk.
This risk assessment is then what is used to gauge the level of coverage you qualify for as well as the rate you must pay.
Note that you’ll be required to take a medical exam and send the results to the company to qualify for service. The exam is used to ensure the truth of your answers related to medical and health information.
Expect to wait between 4 and 6 weeks for an approval after applying. This is the standard length of time it takes most life insurance companies to provide an answer to new clients.
Several additional features are available from American Fidelity that enable you to further tailor your plan to your individual needs and preferences.
Other programs their offer include:
- Retirement services
- Employee benefits
- Health related accounts, like HSA’s
What We Like
Despite their relatively simplistic approach to life insurance, there’s a lot that we like about American Fidelity.
In fact, their simple approach is something of a benefit. With few bells and whistles, it’s easy for newcomers to life insurance to see what the company actually offers.
Other top benefits include:
- Long history in industry
- Strong support of military families
- Decent financial rating
- Lots of options
- Simple application process
Though each of these benefits is important in and of itself, it’s the total package that occurs when they’re combined together that counts.
What We Don’t
There’s not much to dislike about American Fidelity, despite the fact there’s not much which makes them stand out from the competition.
Perhaps the single biggest factors to dislike are their single financial rating, and small market.
Though it’s not a poor financial standing, it’s less than average and only driven by a single rating agency.
According to A.M. Best, one of the top organizations that ranks companies by financial standing, American Fidelity receives a B++ rating.
Dozens of other life insurance companies have A or A+ ratings (or even better).
We believe that the stronger the financial rating, the better the company.
The reason for this is that financial strength directly correlates to the chances that a life insurance company will pay out claims as contracted, even years into the future.
Who Is American Fidelity Life Insurance Best for?
You can’t beat American Fidelity if you’re a service member.
Many of the company’s policies are still designed specifically with service members and their families in mind.
Beyond that, American Fidelity offers solid policies for everyone else.
Though they’re not very unique, they’re still an option worth looking into by just about everyone.
Customer service is highly prioritized by American Fidelity.
Representatives are easy to contact by phone or email. All of the representatives are friendly, knowledgeable, and professional.
We also found their website to be full of information and educational resources related to both their products and life insurance in general. This is a surprise, as most insurance company websites are extremely lacking.
However, you won’t find as much product information as you may want, so may need to call in. The site is also a bit dated, and not so mobile friendly.
You just can’t deny that American Fidelity is doing something right, though they may not be our first choice, in general. However, they do help a large number of Americans, just as their name states.
Their success and the popularity of their service speaks wonders.
And all of it is thanks to their strong products, exceptional customer service, and solid reputation.
We recommend looking into American Fidelity for your life insurance needs, but we also recommend not limiting your search and exploring your other options as well.
|Company Name (and Subsidiaries)||American Fidelity Life Insurance Company|
|Company Ratings||A.M. Best (B++)|
Moody’s Investors Services (N/A)
Standard & Poor’s (N/A)
|Headquarters (Address, Phone, Web)||500 S. Palafox Suite 200|
Pensacola, Florida 32502
|Policy Types Available||Term|