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American Fidelity Life Insurance Company Review

AMFI is not one of our top-rated life insurance companies. You can review our list of the best life insurance companies for what we think are better options.


Pros Explained

  • No war clause for military servicemembers: Most insurance policies have a war exclusion that prevents benefits from being paid out if the covered person dies as a result of their war-time service. AMFI is one of the few companies that doesn’t have a war exclusion, ensuring your beneficiaries receive the full death benefit if you pass away during your service. 
  • Provides supplemental life insurance policies for military servicemembers: AMFI’s policies are not designed to replace SGLI insurance. Instead, they are supplemental policies that will provide cash accumulation and added death benefits. 
  • Flexible access to benefits: Some AMFI plans give you more flexibility and allow you to tap into the policy’s cash value to pay for college or an emergency expense. 


Cons Explained

  • Term life policies aren’t available to civilians: While AMFI underwrites term life policies through the SGLI program for servicemembers, its term life policies are not available to civilians. The only plans available to civilians are whole and universal life policies. 
  • Low coverage maximums: Because AMFI’s plans are intended to be supplemental policies, they have relatively low coverage maximums. For example, the maximum coverage amount available on a traditional whole life policy is $150,000. 
  • Must contact an insurance agent for details: AMFI is only licensed in 47 states. If you live in New Jersey, New York, or Vermont, you’re ineligible for AMFI coverage and will have to work with another life insurance company. 


What You Need to Know

AMFI is a relatively small insurance company. In 2020, it collected $5.3 million in premiums. By contrast, State Farm—one of the largest insurance companies in the country—collected $4.6 billion in individual life insurance premiums in 2020.


Available Plans

AMFI sells term, whole, and universal life policies. However, its term life options are only available to servicemembers through the SGLI program. Individuals looking to buy life insurance as civilians are only eligible for universal or whole life plans. 

AMFI offers the following insurance options: 

Term

With term life insurance, you are covered for a specified length of time. Typically, terms range from 10 to 20 years. Your beneficiaries only receive a benefit if you pass away during the policy’s term. 

AMFI is an underwriter of term life insurance in the SGLI program. Through SGLI, active duty servicemembers can purchase low-cost term coverage. The maximum amount of coverage available is $400,000, but you can opt for a lower amount in $50,000 increments. 

Whole

Whole life coverage is a form of permanent life insurance. While term life insurance lasts for a specified period, whole life coverage lasts for your lifetime. 

AMFI has two whole life options: 

  • Traditional Whole Life: With the Traditional Whole Life plan, cash value accumulates on a tax-deferred basis. It’s available up to age 60, and the maximum amount of coverage available is $150,000 for adults and $50,000 for children. 
  • Flexible Dollar Builder: The Flexible Dollar Builder plan combines a guaranteed death benefit with an interest-bearing accumulation fund. The fund can be used to pay for your child’s college expenses, a down payment on a house, or to cover an unexpected car repair. There is no obligation to repay the amount withdrawn, but a 5% charge applies to money withdrawn during the first 10 years your policy is in force. 

Universal

Universal life insurance provides permanent coverage that combines a death benefit with an investment component that may allow you to accumulate cash value. Universal policies offer more flexibility than whole life policies because you can adjust your premiums and death benefit as your needs change. 

The Future First UL plan is AMFI’s universal life insurance option. With the Future First UL plan, AMFI will invest your money in U.S. government bonds and highly rated corporate bonds. According to the company, the average interest rate paid on accumulation funds has been more than 10% over the last 30 years. 

Keep in mind that past returns are not indicative of future performance, so consider your options carefully before investing your money. 


Available Riders

Like other life insurance companies, AMFI offers optional riders you can add to your policy to purchase additional coverage or added benefits. Insurance riders, also known as endorsements, typically cost extra but allow you to customize your coverage. 

AMFI has the following riders: 

Accidental Death Benefit

Available under certain plans, people between the ages of 21 and 55 can add the accidental death benefit rider to their plan. With this rider, your designated beneficiaries will receive more money if you die in a covered accident. 

Waiver of Premium

The waiver of premium rider is available to people between the ages of 16 and 55. If you are disabled and unable to work, AMFI will waive your premiums but keep your policy in force. 


Customer Service

AMFI has limited information about its policies and riders online. For more information, you must contact an insurance agent. 

For general questions, you can contact AMFI’s customer service department by calling 850-456-7401. Customer support is available Monday through Friday from 8 a.m. until 4:30 p.m. CST. If you’d prefer to email customer service, you can submit a message through AMFI’s website. 

AMFI does have an online portal for policyholders, but its functionality is limited. You can download policy documents and claim forms, but you’ll have to fill them out and send them through the mail. 


Complaint Index

Before purchasing a life insurance policy, do your homework. When evaluating an insurer, a good place to check is the National Association of Insurance Commissioner (NAIC) website. The NAIC collects complaints submitted about insurance companies and uses that information to determine company complaint ratios. 

The complaint ratios reflect the number of complaints submitted relative to the company’s share of the market. The standard complaint ratio is 1.0. If a company’s ratio is above 1.0, it received more complaints than is typical for its size. Likewise, a ratio below 1.0 indicates that it received fewer complaints than is typical. 

AMFI is a smaller insurance company, but no complaints have been submitted about it over the past three years. 


Third-Party Ratings

AMFI’s reputation in the insurance industry is somewhat precarious. In 2021, AM Best affirmed AMFI’s B++ (Good) rating. According to the agency, the rating was issued because of AMFI’s limited business profile and marginal operating performance. 

While a B++ rating isn’t poor, it’s lower than what major life insurance companies usually receive. For example, the three largest issuers of individual life insurance policies—Northwestern Mutual, New York Life, and the Massachusetts Mutual Life Insurance Company—all have A++ (Superior) ratings.

AMFI was not included in the J.D. Power 2020 U.S. Individual Life Insurance Study. The study evaluated 24 major life insurance companies and ranked them based on their cost, communication, and policy options. 


Cancellation Policy

Like all insurance policies, AMFI’s policies have a free-look period. It usually lasts for 10 days, but you may have a longer period in some states. During this time, you can decide to cancel your policy and get a full refund. 

After the free-look period expires, how cancellations are handled is dependent on the type of policy you have. To cancel your coverage, you must submit a written request of cancellation that includes your policy number, Social Security number, address, and name. Review the “Right to Examine” section of your policy to see what fees may apply, or talk to your insurance agent. 


Converting SGLI Coverage

If you have SGLI coverage and are discharged or separated from the military, you can convert your SGLI term life plan to individual coverage. When you convert SGLI coverage to an individual AMFI policy, you aren’t required to provide health information, but answering health questions may qualify you for lower premiums. 

With SGLI coverage, you have 120 days from the date of your separation to convert your policy. To start the conversion process, call AMFI at 850-456-7401. 


Price

AMFI doesn’t offer an online quote tool, nor does it list rates on its website. To get information about its premiums, you must contact an insurance agent. 

For military servicemembers who qualify for SGLI insurance, the cost of your policy is relatively low. Servicemembers can purchase a $400,000 term life policy for just $25 per month. That price includes Traumatic Injury Protection, a benefit that provides short-term financial support while eligible servicemembers recover from severe injuries incurred while on active duty.  

As with other insurance companies, AMFI requires you to select either “male” or “female” when getting a quote or applying for a life insurance policy. Being nonbinary doesn’t disqualify you from getting life insurance, but you should be aware that most insurance companies haven’t updated their underwriting processes to reflect a current awareness of gender issues. 


Competition

AMFI offers multiple policy options and stands out because it doesn’t have war exclusions on its plans. However, it may not provide sufficient protection for your family due to its low coverage maximums. 

If you’re looking for another life insurance company that caters to military servicemembers and veterans, consider purchasing a policy from USAA. Unlike AMFI, USAA offers policy coverage amounts as high as $10 million, and you can purchase term, whole, or universal life plans. USAA also offers more riders that you can use to adjust your coverage or purchase additional protection. 

USAA also has a stronger reputation for financial stability than AMFI. In 2021, AM Best affirmed its A++ (Superior) rating.

  American Fidelity Life Insurance Company USAA 
Market Share Not applicable Not applicable 
Number of Plans  4
Dividends for 2020  Not applicable Not applicable 
Wellness Program Discounts/Quit Smoking Incentives  Not applicable  Not applicable 
Service Method  Insurance agent Phone, web
AM Best Rating B++ (Good) A++ (Superior) 
Complaints Trend  0.00 0.12 


Final Verdict

For military servicemembers looking to supplement their SGLI policies for added coverage, AMFI can be a good match. You can choose whole or universal life coverage, and AMFI doesn’t have a war clause, making it an appealing option if you’re on active duty. 

However, the company has a relatively low financial stability rating, and its policy maximums may be insufficient for many families. If you need a higher death benefit to provide for your loved ones, you’ll need to apply for insurance from another company.



How We Review Life Insurance Companies

Our reviews of life insurance companies are based on a quantitative methodology that analyzes each insurer’s stability and reliability, customer service, claims experience, diversity of product lines, and cost. We compare the terms of each type of policy offered—including available coverage amounts, optional riders, and premium payment options—with that of other major life insurance companies. Lastly, we look at how the company is rated by third-party organizations to determine its reliability and overall reputation.

Investopedia 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. NAIC. “Licensing Report – American Fidelity Life Insurance Company.” Accessed July 19, 2021. 

  2. NAIC. “Complaint Index -American Fidelity Life Insurance Company.” Accessed July 19, 2021. 

  3. NAIC. “Complaint Index – State Farm Life Insurance Company.” Accessed July 20, 2021. 

  4. Businesswire. “AM Best Revises Outlooks to Stable for American Fidelity Life Insurance Company.” Accessed July 19, 2021. 

  5. AM Best. “AM Best Comments on Massachusetts Mutual Life Insurance Co’s Acquisition of American Financial Group Inc’s Life Subsidiaries.” Accessed July 20, 2021. 

  6. AM Best. “New York Life Insurance Company.” Accessed July 20, 2021. 

  7. AM Best. “AM Best Affirms Credit Ratings of The Northwestern Mutual Life Insurance Company and Its Subsidiary.” Accessed July 20, 2021. 

  8. U.S. Department of Veterans Affairs. “How to Convert Your SGLI/FSGLI/VGLI Coverage to an Individual Policy.” Accessed July 20, 2021. 

  9. U.S. Department of Veterans Affairs. “Servicemembers’ Group Life Insurance (SGLI).” Accessed July 20, 2021. 

  10. U.S. Department of Veterans Affairs. “Traumatic Injury Protection (TSGLI).” Accessed July 20, 2021. 


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