American Fidelity Assurance Insurance Review & Complaints: Health & Life Insurance

American Fidelity is a private, family-owned insurer offering health and life insurance-related coverage. Based in Oklahoma City, Oklahoma, the company has been growing steadily since its inception in 1960. American Fidelity is now the second-largest private, family-owned life insurer in the country, serving more than 1 million customers in each of 49 states and internationally in 23 countries.

American Fidelity offers a variety of health and extended benefit coverages as well as financial products. Although some products are marketed to individuals, American Fidelity typically sells its policies through employers; policies and coverage can be purchased through an AFA plan administrator once an employer has partnered with the company.

Can I get a life insurance policy?

AFA offers several different life insurance plans for both adults and children. As for plan options, term life insurance policies are sold in increments of 10, 20, and 30 years, with rates being based on the length of the term and the policyholder’s age and health. Permanent whole life insurance coverage, which includes an investment component, provides a guaranteed death benefit up to age 100.

Anyone considering purchasing life insurance should read our post about why term life is better than whole life.

Can I get a health insurance policy?

American Fidelity does not sell any major medical insurance. It does, however, provide a variety of supplemental benefits coverages that can augment a major medical policy. For example, the company sells cancer, accident, and critical illness insurance, which helps to cover the costs associated with these serious conditions. Disability income insurance is also available for customers who lose the ability to work due to a serious accident or injury.

In addition to these benefits, AFA also offers flex spending accounts, health savings accounts, and health reimbursement accounts. These act as supplements to major medical insurance. In the case of flex spending and health savings accounts, customers can set aside pre-tax dollars to pay for medical expenses.

A health reimbursement account, meanwhile, allows employers to reimburse employees for their medical expenses, including major medical premiums, while enjoying tax benefits. A reimbursement account can be used in addition to or in lieu of employee-sponsored health insurance.

What additional products are offered?

Aside from insurance products, AFA also offers financial products for retirement. These include Roth IRAs and several types of annuities. A Roth IRA allows individuals to put money aside after tax to grow for retirement when it can be disbursed tax-free. An annuity, meanwhile, provides guaranteed income throughout a customer’s retirement in exchange for regular tax-deferred investments.

Although AFA sells its policies through employers, individuals are able to keep the policy after leaving a job. All AFA policies are similarly portable.

What are American Fidelity Assurance price (rates)?

Our premium rate tests are currently done using auto insurance, which American Fidelity does not sell. Therefore, the premium price will not be used in determining the overall score for this review.

How are claims processed?

American Fidelity has a variety of claim forms on its website for customer use depending on the type of insurance claim being filed. After choosing the product, state, and industry, you will be directed to the appropriate claim form. The form can then be downloaded, filled out, and mailed or faxed to the company.

Alternatively, customers can file health and life insurance claims and contact their representatives by phone. Each industry serviced by AFA has a separate customer service line, so it’s important to check the website to confirm which number to call. Customers can also direct inquiries through their employer to be placed in contact with the plan administrator.

What about consumer research and complaints?

American Fidelity Assurance has been accredited with the Better Business Bureau since 1975. It has an “A+” rating on the site. The BBB site lists 24 complaints against the company in the last three years, nine of which have been closed in the last 12 months. Of these, most have been issues with the product or service and billing issues.

What about financial strength?

Rating Company	Grade	Financial Outlook
AM Best	A+	Stable
Fitch	N/A	N/A
S&P	N/A	N/A

What’s the bottom line?

Is American Fidelity a good insurance company? American Fidelity Assurance offers a number of different life and health insurance-related products, though they do not sell major medical insurance directly. Their products can be great companions to most medical coverage plans, and many of them are portable if established through an employer. Their Better Business Bureau rating is above average, and according to AM Best, their financial strength is strong.