Pros Explained

• No war clauses in any of AMFI’s policies: Many insurance companies write policies with war clauses, which means they won’t pay death claims that result from an act of war. AMFI ensures that military members and their loved ones are protected even if they die while on active duty. 
• Few customer complaints: AMFI had only two complaints in 2022, one complaint in 2021, and no complaints in 2020 for its individual life insurance policies.

Cons Explained

• Few policy details available online: AMFI doesn’t disclose issue ages, maximum coverage limits, or other features on its website. 
• Limited online tools: AMFI doesn’t offer online quotes, applications, or claims. The online portal is also very limited and doesn’t allow for online payments.

Complaint Index

For 2020, AMFI had far fewer complaints than expected given the company’s size, according to the National Association of Insurance Commissioners (NAIC). The NAIC annually calculates a complaint index for every insurance company to help consumers better understand how many complaints a company receives. The complaint index indicates whether the number of complaints received was high or low relative to the company’s share of the market. An index less than 1.00 means the company received fewer complaints than expected, while an index greater than 1.00 means it received more.

In 2021, AMFI received only one complaint, but since the company is relatively small, that one complaint resulted in a high complaint index of 4.06. Similarly, in 2022, AMFI only received two complaints, but that drove up the index to 7.22. However, the average complaint index for 2020 was 0.00, indicating that no complaints were received. This suggests that policyholders are, for the most part, satisfied with the service they receive from AMFI. 

Third-Party Ratings

AMFI’s ratings for financial strength are slightly below what we would typically recommend. The company received a B++ (Good) financial strength grade from AM Best, an independent agency focused on evaluating the creditworthiness of insurance companies. The outlook is stable for AMFI, which means AM Best does not expect its rating to turn negative, but most of the top insurance companies we review have an A grade or above. B++ is only the 5th highest grade available. 

Policies Available

AMFI offers two different types of permanent life insurance.

Whole Life Insurance

Whole life insurance is a type of permanent policy where premiums stay level throughout your life and a cash value component accumulates within the policy. You may be able to borrow from the cash value in later years. Your beneficiaries are guaranteed to receive a death benefit no matter when you die, as long as scheduled premiums are paid. 

Universal Life Insurance

Universal life insurance is another type of permanent policy that features an interest-earning cash value account and flexible premiums. You can even change the death benefit if your needs change, though increasing it often requires a medical exam. There’s typically a minimum premium required to keep the policy in force, but you’ll have more flexibility with your payments than you would with whole life insurance. 

Available Riders

Riders are add-ons you can use to customize your coverage and get additional benefits out of your policy. For example, accelerated death benefits can provide you with cash to pay for care costs if you become ill prior to your death. AMFI only offers riders with its whole life policies.

Customer Service

AMFI only offers customer support during business hours. You can reach a representative at 850-456-7401 or 844-944-4811 on weekdays between the hours of 8 a.m. and 4:30 p.m. CST. If your question is specifically about your universal life insurance policy, call 866-997-6349. You can also use this to submit an inquiry at any time. 

Final Verdict

American Fidelity's main benefit is that it doesn’t include war clauses in its policies, which means it may be a good choice for military members looking to supplement their SGLI benefits with a permanent policy. It's also one of the few companies that allow you to convert your SGLI term coverage into permanent coverage.

While this may be an easy, seamless option for veterans looking to keep coverage while transitioning to civilian life, American Fidelity's policy details on its website are lacking and it doesn’t offer options to customize policies. It also has a lower financial strength rating than what we're typically comfortable with, so you'll want to shop around and get quotes from some other life insurance companies before committing to a policy.

Frequently Asked Questions

Does Fidelity Life Pay Out?

American Fidelity has a B++ financial strength rating from AM Best, which means it has a "good" ability to fulfill its financial obligations. While it can be trusted to pay out its claims, American Fidelity scored lower than its competitors.

How Long Does It Take American Fidelity to Process a Claim?

It typically takes between a week and two months to receive payment for a life insurance claim.

Can You Cancel American Fidelity Insurance?

Yes, you can cancel American Fidelity life insurance by submitting a written request for cancellation.

What Is American Fidelity's Financial Rating?

American Fidelity has a B++ financial strength rating from AM Best, which means it has a "good" ability to fulfill its financial obligations.

Methodology

We designed a comprehensive ranking methodology based on consumer priorities and life insurance company fundamentals to rank more than 90 insurers across five general categories: financial stability, customer satisfaction, product and feature variety, the overall buying experience, and cost. In order to do this, we collected over 5,000 data points and scored each company based on 55 metrics. We grouped metrics by category to see how insurers performed in each; we then weighted category scores to determine how companies performed overall.

To learn more, read our full Life Insurance Methodology.