As part of our ongoing life insurance reviews we came across American Fidelity Life Insurance Company due to it being an alternative to VGLI Veteran’s Group Life Insurance. In the following American Fidelity review, we will cover the company’s history, financials, ratings, products and services. Is American Fidelity the right fit for you?
Related: Compare Life Insurance Quotes from the Nation’s Top Rated Carriers.
About American Fidelity Life Insurance Company
History – Founded in 1956, American Fidelity Life Insurance Company was actually launched by a decorated WWII marine. All through life Charles Woodbury had a sense of purpose and he began working with families in Pensacola, Florida, as soon as he left the military. In order to improve their security, he wanted to create special financial products focused on protecting military families. After realizing there was a similar problem in the community, the lack of financial planning for retirement, he decided to offer products that met the unique needs of the individuals.
Ever since this date, the company has continued on their journey of offering strong insurance products and they’re still going strong today…over 60 years later. In addition to providing products themselves, American Fidelity Life Insurance (AMFI) is also the underwriter for the SGLI Servicemembers Group Life Insurance program which looks after all servicemen and women regardless of their location in the world. Today, they’re licensed across 47 states, Washington DC, and Guam,1 and we have an insight into their finances below.
American Fidelity Life Insurance Company Finances
With the most recent financial figures coming from 2018, annual life insurance premiums brought in come to over $5 million with assets of $401 million.2 Compared to other companies during the global recession, AMFI actually remained strong and they sit in a comfortable financial position now as a result.
American Fidelity Life Insurance Company Ratings
A.M. Best – With a rating of B++ (Good) as of 2019, AMFI is currently walking the fine line between being absolutely fine and a company to avoid. Typically, we say that all companies within the ‘A’ bracket are absolutely perfect for all your life insurance needs. Therefore, this suggests that anything in the ‘B’ bracket isn’t quite good enough. However, B++ is the closest you can get to an A grade and AMFI is certainly knocking on the door.
On the other hand, perhaps the company’s outlook is a little more telling after it was recently changed from ‘Stable’ to ‘Negative’. According to A.M. Best, the amount of in-force insurance is currently on the decline for AMFI and their business profile is also somewhat limited so this is important to remember.
Better Business Bureau (BBB) – In terms of customer service, American Fidelity Life Insurance sit atop the pile and this is thanks to a 2019 A+ rating. As an accredited business, AMFI has been assessed on various criterion including complaints, company history, advertising issues, licensing and government actions, failure to honor commitments, and more.
As you may have guessed, this is the best rating a company can receive and it means they were judged to be above 97 on a scale of 0 to 100. Although we expect all companies to be above 90 these days, there are companies that slip underneath the bar and these are the ones that often cause the most issues. When you have a life insurance policy with a company, you need to feel happy they can fix all issues as well as being contactable and American Fidelity Life doesn’t have an issues in this regard.
Products offered by American Fidelity Life Insurance Company
American Fidelity, through Transworld Assurance Company, provides life insurance coverage with no war clause. Both term life vs whole life insurance is offered. In addition, the company also offers universal life insurance and group. Let’s start our product review by taking a look at the company’s universal life.
Future First Universal Life Insurance Policy
Universal life insurance offers flexible premium payments and a death benefit than can be increased or decreased depending on your needs. Additionally, universal life provides the potential for cash value accumulation.
Flexible Dollar Builder Whole Life Insurance
The policy offers cash value whole life insurance with all the guarantees associated with whole life, including guaranteed death benefit protection for life. You have an option of 10-Pay and 20-Pay limited pay whole life, or a level plan.
Traditional Whole Life
Traditional whole life provides level death benefit protection with premiums due to age 100. The policy is available for ages 60 and under, with maximum face amounts of $100,000.
Twenty Pay Graded-Benefit Whole Life Policy
This graded death benefit whole life policy provides that in the first 2 years the policy will pay out all premiums, plus 10% interest. After two years, the full death benefit will be in affect. This type of policy is ideal for anyone with health issues that normally would not qualify for coverage. The policy has a maximum face amount of $10,000 and you must be 60 years old or younger to qualify.
Term Life Insurance
Level term life insurance offers a fixed premium and guaranteed death benefit, lasting for a set period of time, typically 10-30 year terms. If you die during the term, your beneficiary will receive a lump sum death benefit. Once the term ends, the policy can be annually renewed, but at a higher premium each year.
Finally, if you’re a manager or owner of a business this option could be useful for you since it allows the coverage of a group of people. With just one insurance policy in place, it can cover all the employees within a business or perhaps even the members of a certain association. Typically, a master policy will be introduced and this acts as an umbrella by which all the employees or members within all benefit from a certain amount of cover.
If you’re an employee and your company has just recently introduced group coverage, we highly recommend assessing your own coverage in detail. In all likelihood, you’ll also need individual protection vs group life insurance so take your time and assess your needs before just accepting the group policy as enough.
As with most companies nowadays, there’s a ‘Contact Us’ section on the American Fidelity Life website and this should provide you with everything you need whether you’re already a customer or perhaps just showing some interest and looking for some specific figures on what policy you could obtain.
Although not quite up-to-date with the more modern companies with social media and live chat functions, there is a FAQ page which is always a good place to get started. After this, you can phone their number which is accessible during normal office hours. Depending on whether you have a general inquiry or an inquiry regarding a Future First Universal Life policy, there are two numbers you can dial.
Strangely enough, the company doesn’t advertise an email address and this is likely to leave some disappointed but there is a fax number as well as an address if you want to go the traditional route and send mail. Compared to other companies in the market, these methods of communication are a little outdated but, then again, they have the best possible rating from the Better Business Bureau with very few complaints so they don’t have major issues and they seem to keep customers happy so this is something to remember.
American Fidelity Life Insurance Company Conclusion
American Fidelity seems like a fine insurance company. We don’t have any negatives to offer, other than the fact that American Fidelity is just one insurer of many. It always pays to have options.
At TermLife2Go, we can help you shop from dozens of different insurers to try and align you with the best company, policy and price. So if you are interested in comparing your offer from American Fidelity with what we can find for you, give us a call today and see what we can do for you!
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