Fidelity Accident Insurance: Coverage Plan and Benefits

Estimated reading time: 7 minutes

Enjoying life to the fullest also means planning ahead. Fidelity accident insurance can help you do just that—with affordable coverage that protects your loved ones if the unexpected happens.

Fidelity Life’s Accidental Death Benefit (ADB) insurance offers valuable financial support if a fatal accident occurs. In this guide, we’ll explore how the plan works, who it’s ideal for, and what makes it stand out.

What Is Fidelity Accidental Death Insurance?

Fidelity’s Accidental Death Benefit insurance provides financial protection when an unexpected accident leads to a loss. This accident insurance policy pays a lump sum to your beneficiaries if you die within 90 days of a qualifying event, such as a car crash or fall. Beyond the death benefit, it can also help ease the burden of uncovered medical expenses related to the accident. For families managing growing insurance needs or people incorporating protection into their estate planning, this policy offers a straightforward way to add an extra layer of financial security.

Eligibility and Application Process

Anyone between the ages of 20 and 59 can apply. There are no health questions or medical exams. The company guarantees acceptance, and most applicants receive approval within 24 hours.

Coverage Limits and Duration

You can choose a coverage amount between $50,000 and $500,000 to fit your financial goals. The full benefit lasts until age 70. After that, it drops by 50% and remains at that reduced level until the policy ends at age 80.

Key Features and Optional Riders

Fidelity’s ADB policy includes built-in perks and several optional add-ons.

Built-In and Optional Benefits

• Travel Accident Benefit: If you’re a passenger on public transportation and an accident occurs, your payout doubles.
• Family Rider: Add coverage for your spouse (up to 60% of your base benefit) and children (up to 20%).
• Inflation Rider: Increases your death benefit by 5% each year from years 2 to 6.
• Return of Premium Rider: Get back up to 100% of your paid premiums at the end of the rider term.

Policy Rates and Billing

Fidelity offers competitive, unisex pricing with flexible billing options: monthly, quarterly, semi-annual, or annual. Your age and selected benefit amount determine the rates.

Exclusions to Know

Fidelity’s policy won’t pay out in cases involving drug or alcohol abuse, criminal activity, high-risk sports like skydiving, or participation in war or terrorism. Review the full list of exclusions to understand what situations won’t qualify for benefits.

Who Should Consider This Policy?

Ideal Policyholders

This plan suits people who want fast, affordable coverage without going through a medical exam. It’s especially attractive to:

• Young families with children
• Those with high-deductible health plans
• Self-employed individuals without employer-provided life insurance

Real-Life Use Cases

Example 1: A self-employed dad needed financial backup for his family but didn’t want to go through a medical exam. He applied for $250,000 in ADB coverage and received approval in under 24 hours. The policy became a reliable part of his family’s financial safety net.

Example 2: A couple in their 30s looked for additional protection to complement their existing term life policy. They chose a Fidelity ADB plan to cover accident-related risks and felt more confident knowing they had extra coverage tailored to their lifestyle.

Pros and Cons

Fidelity’s accident coverage offers strong value for those looking to strengthen their financial plans. It’s more than just a payout—it’s a practical tool for managing the financial impact of unexpected injuries or fatalities. The lump sum cash benefits can help your loved ones handle medical bills, cover day-to-day living expenses, or fill in gaps left by other policies.

Optional riders like the Return of Premium and Family Coverage enhance flexibility and long-term value, while the Inflation Rider helps your coverage keep pace with rising costs. For families or individuals without access to employer-provided life insurance, this plan can serve as an accessible and affordable safety net.

Pros:

• Fast approval
• No health questions required
• Affordable premiums
• Cash benefits for loved ones
• Family coverage available
• Helpful optional riders (Inflation, Return of Premium, Family Rider)

Cons:

• Benefit reduces by 50% at age 70
• No coverage for death caused by illness
• Excludes high-risk activities and certain events

Frequently Asked Questions

Is Fidelity Accidental Death Insurance Worth It?

This policy can be a good option for those seeking affordable, no-exam coverage. It’s most valuable as a supplement, not a replacement for full life insurance, especially if you’re younger or unable to qualify for traditional coverage.

How Does It Compare to Other Providers?

Fidelity offers a fast application process, competitive rates, and helpful riders. While other providers like American Fidelity offer similar benefits, Fidelity’s return-of-premium and inflation options help it stand out in the accidental death insurance market.

What types of accidents are covered under Fidelity’s Accidental Death Insurance?

Fidelity’s Accidental Death Insurance covers fatalities resulting from unforeseen events such as car accidents, falls, or other sudden incidents. It’s important to review the policy details to understand specific inclusions and exclusions.

Does Fidelity’s Accidental Death Insurance cover dismemberment or non-fatal injuries?

No, Fidelity’s policy focuses solely on accidental death. It does not provide benefits for dismemberment or non-fatal injuries. For coverage that includes such events, consider policies that offer Accidental Death and Dismemberment (AD&D) insurance.

Can I add family members to my Fidelity Accidental Death policy?

Yes, Fidelity offers a Family Accidental Death Benefit Rider. This optional add-on provides coverage for your spouse and dependent children, offering additional financial protection for your family.

What is the Return of Premium (ROP) Rider, and how does it work?

The ROP Rider allows policyholders to receive a percentage of their paid premiums back if they outlive the policy term. The amount returned varies based on the policy duration and the insured’s age at issue.

How does Fidelity’s Accidental Death Insurance compare to traditional life insurance?

Accidental Death Insurance provides coverage exclusively for deaths resulting from accidents, often at a lower cost and without medical exams. In contrast, traditional life insurance covers death from most causes, including illness, and may require medical underwriting.

To read more on how different types of insurance (including accident insurance) can save families, read a collection of insurance coverage case studies here.

How Abrams Insurance Solutions Can Help

At Abrams Insurance Solutions, we understand how important it is to protect your loved ones. Every family has a specific situation, and our goal is to match you with accident insurance policies that support your financial goals. Whether you’re planning for the future or looking to minimize out-of-pocket costs, we’re here to walk you through your options, answer your questions, and help you compare policies side-by-side.

Give us a call at (858) 703-6178 to get personalized advice or a quote today.