🎯 Bottom Line Up Front
Fidelity founded
AIG founded
Both A.M. Best rated
Understanding Fidelity and AIG: Company Overview
Key insight: “Fidelity” in life insurance can refer to two different entities, while AIG’s life insurance division now operates under the Corebridge Financial brand.
Before comparing these companies, it’s important to clarify which entities we’re discussing, as confusion often arises around company names and structures in the insurance industry.
The Two Fidelity Companies
Fidelity Life Association
- Founded in 1896 (128+ years)
- Originally “Mystic Workers of the World”
- Headquarters in Chicago, Illinois
- A- (Excellent) from A.M. Best
- Focuses on seniors and no-exam policies
- $25+ billion in force
Fidelity Investments Life Insurance
- Founded in 1987 (38 years)
- Part of Fidelity Investments
- Headquarters in Boston, Massachusetts
- A+ (Superior) from A.M. Best
- Focuses on term life for investors
- Leverages Fidelity’s financial expertise
Important Clarification
For this comparison, we’re primarily focusing on Fidelity Life Association when discussing Fidelity, as it’s the larger, more established life insurance specialist that most consumers encounter when comparing life insurance options. Fidelity Investments Life Insurance primarily serves Fidelity investment customers and has a more limited product range.
AIG / Corebridge Financial
American International Group (AIG) is a global insurance giant founded in 1919. In 2022, AIG separated its life insurance and retirement business into Corebridge Financial, which now operates as an independent, publicly-traded company while maintaining the strong financial backing and reputation of the AIG brand. When discussing “AIG life insurance,” we’re referring to products underwritten by American General Life Insurance Company and other Corebridge subsidiaries.
AIG / Corebridge Financial
- AIG was founded in 1919 (106 years)
- Corebridge spun off in 2022
- Headquarters in Houston, Texas
- A (Excellent) from A.M. Best
- Global presence in 80+ countries
- Comprehensive product portfolio
What the Name Change Means
The AIG to Corebridge Financial transition doesn’t affect existing policyholders or the strength of coverage. It’s a corporate restructuring that allows the life insurance business to operate independently while maintaining robust financial backing. Many policies are still marketed under the AIG name, particularly American General products.
Financial Strength and Stability Comparison
Key insight: Both companies demonstrate strong financial stability with excellent ratings from major agencies, ensuring they can meet long-term obligations to policyholders.
| Rating Agency | Fidelity Life Association | AIG / Corebridge | What It Means |
|---|---|---|---|
| A.M. Best | A- (Excellent) | A (Excellent) | Both have an excellent ability to meet obligations |
| Standard & Poor’s | Not rated | A (Stable Outlook) | AIG has additional third-party validation |
| Moody’s | Not rated | A2 (Positive Outlook) | Strong financial strength rating |
| Years in Business | 128+ years | 106+ years (AIG) | Both have proven long-term stability |
Financial Stability Verdict
Both companies are financially sound. Fidelity Life Association’s A- rating and 128-year history demonstrate strong stability, particularly impressive for a company focused on middle-market and senior coverage. AIG’s slightly higher A rating and multiple rating agency confirmations reflect its massive global scale and diversified operations. Either company has demonstrated the financial strength to honor claims and maintain policies long-term.
Historical Performance
Fidelity Life Association
Consistent Performance: Survived the Great Depression, multiple recessions, and market downturns while continuously growing. The A- rating has remained stable since 1996. Fidelity has paid out billions in benefits over its 128-year history, demonstrating reliable claims-paying ability even during economic challenges.
AIG / Corebridge
Recovery and Strength: AIG faced significant challenges during the 2008 financial crisis but has since undergone substantial restructuring and emerged stronger. The life insurance division (now Corebridge) maintained its financial strength throughout, and recent ratings upgrades reflect improved underwriting and solid capital position.
What This Means for You
Both companies have the financial stability to honor their commitments. When choosing between them, financial strength ratings shouldn’t be your primary deciding factor—focus instead on products, pricing, and which company better serves your specific needs. Both are reliable, established insurers with decades of proven performance.
Product Offerings: What Each Company Provides
Key insight: Fidelity specializes in simplified, fast-approval policies, particularly for seniors, while AIG offers comprehensive coverage with exceptional flexibility and customization options.
Fidelity Life Association Products
| Product | Coverage Range | Age Range | Key Features |
|---|---|---|---|
| RAPIDecision Life (Term) | $50,000 – $2,000,000 | 18-65 | Fast approval, medical exam flexible |
| RAPIDecision Senior Life (Term) | $10,000 – $150,000 | 50-70 | No exam, quick acceptance |
| RAPIDecision Final Expense | $5,000 – $40,000 | 50-85 | Burial/final expense coverage |
| RAPIDecision Guaranteed Issue | Up to $25,000 | 50-85 | No health questions, graded benefits |
| RAPIDecision Senior Whole Life | $10,000 – $150,000 | 50-85 | Permanent coverage with cash value |
AIG / Corebridge Products
| Product | Coverage Range | Key Features |
|---|---|---|
| Select-a-Term | $100,000 – $10,000,000+ | 18 different term lengths (10-35 years) – industry leading |
| QoL Flex Term | Varies | Built-in living benefits for terminal/chronic/critical illness |
| Whole Life | Varies | Traditional permanent coverage with cash value |
| Guaranteed Universal Life (GUL) | Varies | Lifetime coverage guarantee with level premiums |
| Indexed Universal Life (IUL) | Varies | Market-linked growth potential with downside protection |
| Variable Universal Life (VUL) | Varies | Investment options within the policy |
Fidelity’s Strength: Simplicity & Speed
- Streamlined product lineup
- Fast approval processes
- No-exam options widely available
- Excellent for seniors 50+
- Simplified underwriting
- Final expense specialists
AIG’s Strength: Variety & Customization
- Comprehensive product portfolio
- Industry-leading 35-year terms
- 18 different term length options
- Multiple permanent life choices
- Living benefit riders included
- High coverage limits available
Product Comparison Summary
Choose Fidelity if you want straightforward, no-exam coverage with fast approval, particularly if you’re age 50+, need final expense coverage, or have health issues that make traditional underwriting challenging.
Choose AIG if you need high coverage amounts, want precise term length customization (11, 18, 23 years, etc.), require comprehensive permanent life options like IUL or VUL, or want built-in living benefits for chronic illness protection.
Pricing and Value Comparison
Key insight: Pricing varies by age, health, and product type—neither company is consistently cheaper across all categories, but each offers competitive rates for their target markets.
Life insurance pricing is highly individualized based on age, gender, health status, coverage amount, and policy type. While we can examine general trends, your actual quotes may differ significantly.
Sample Rate Comparison: $250,000 / 20-Year Term
| Age/Gender | Fidelity Life (Approx.) | AIG (Approx.) | Better Value |
|---|---|---|---|
| 30-year-old Male | $25-30/month | $20-25/month | AIG typically lower |
| 30-year-old Female | $20-25/month | $18-22/month | AIG typically lower |
| 50-year-old Male | $85-95/month | $90-100/month | Competitive/similar |
| 50-year-old Female | $65-75/month | $70-80/month | Fidelity often better |
| 60-year-old Male | $200-225/month | $215-240/month | Fidelity often better |
Important Pricing Notes
These are approximate ranges for healthy, non-smoking applicants. Actual rates depend on detailed health information, lifestyle factors, occupation, and more. Both companies offer competitive pricing—the “better value” changes based on your specific profile. Always get personalized quotes from both insurers.
Value Considerations Beyond Price
Fidelity’s Value Proposition
- Speed to Coverage: Fast approval often means quicker protection for your family
- Simplified Underwriting: Saves time and hassle, especially valuable for busy professionals
- Flexible Medical Exams: Can postpone or potentially avoid exams, reducing barriers to coverage
- Senior-Focused Products: Specialized options for age 50+ that competitors don’t always offer
- Competitive Final Expense: Often beats competitors in the burial insurance market
AIG’s Value Proposition
- Precise Term Matching: 18 term lengths mean you’re not overpaying for unnecessary years
- High Coverage Limits: Can secure $5M-$10M+ policies when needed without issues
- Included Living Benefits: QoL riders provide chronic illness protection at no extra cost
- Product Variety: One company for all life insurance needs, from term to complex permanent policies
- Competitive for Health Issues: Often offers better rates than competitors for applicants with diabetes, Crohn’s, or other conditions
The Price Verdict
Neither company is universally cheaper. AIG tends to be more competitive for younger, healthy applicants seeking large coverage amounts and precise term lengths. Fidelity often wins for ages 50+, those needing quick approval, or final expense coverage. The smartest approach: get quotes from both companies for your specific situation.
Target Markets: Who Each Company Serves Best
Key insight: Understanding each company’s ideal customer helps you identify which insurer is designed to serve people in your situation.
Fidelity’s Ideal Customers
- Ages 50-85 (sweet spot)
- Seniors needing coverage quickly
- Those avoiding medical exams
- Final expense/burial insurance seekers
- Health challenges are making traditional underwriting difficult
- Middle-income families wanting simplicity
- People prioritizing speed over customization
AIG’s Ideal Customers
- Ages 25-60 (optimal range)
- High coverage needs ($500K-$10M+)
- Those wanting precise term lengths
- Seeking permanent life options (IUL, GUL, VUL)
- Business owners needing sophisticated planning
- Healthy applicants seeking competitive rates
- People wanting comprehensive living benefits
Detailed Scenario Analysis
Scenario 1: 55-Year-Old Retiree Needing $50,000 Final Expense
Better Choice: Fidelity
Fidelity’s RAPIDecision Final Expense or Senior Whole Life products are purpose-built for this need. Fast approval, no medical exam required, and coverage designed specifically for burial expenses and end-of-life costs. AIG can provide this coverage, but doesn’t specialize in this market segment.
Scenario 2: 35-Year-Old Parent Needing $1.5M for 22 Years
Better Choice: AIG
AIG’s Select-a-Term allows precise 22-year terms (perfect if your youngest child turns 18 in 22 years), offers high coverage limits easily, and typically provides competitive rates for healthy mid-30s applicants. Fidelity offers standard terms but not this level of customization or coverage focus.
Scenario 3: 65-Year-Old With Diabetes Needing $100,000
Better Choice: Could Go Either Way
Fidelity’s simplified underwriting may be faster and easier. AIG is known for competitive rates on diabetes cases and might offer better pricing. Best approach: quote both and compare specific offers given your health details.
Scenario 4: 40-Year-Old Seeking IUL for Retirement Planning
Better Choice: AIG
AIG offers sophisticated IUL products with strong cash value accumulation features and living benefit riders. Fidelity’s focus is on simpler products without complex permanent life options like IUL. For wealth accumulation strategies, AIG is the clear winner.
Finding Your Fit
Ask yourself these questions:
- Am I age 50 or older? → Fidelity may be designed for you
- Do I need more than $500,000 in coverage? → AIG is likely better equipped
- Do I want to avoid medical exams? → Fidelity specializes in this
- Do I need a non-standard term length (like 17 or 23 years)? → AIG offers precision
- Is this primarily for burial expenses? → Fidelity’s expertise
- Do I want permanent life with investment features? → AIG’s strength
Customer Service and Application Experience
Key insight: Application experience differs significantly—Fidelity prioritizes speed and simplicity while AIG offers more comprehensive service with additional complexity.
Application Process Comparison
| Factor | Fidelity Life | AIG / Corebridge |
|---|---|---|
| Online Quote | Yes – instant estimates | Yes – comprehensive calculators |
| Application Time | Quick – often minutes to hours | Moderate – days to weeks, depending on coverage |
| Medical Exam Requirement | Often waived or postponed | Required for most traditional policies |
| Approval Speed | Fast – same day to 48 hours common | Moderate – 2-4 weeks typical for full underwriting |
| Complexity | Simple, streamlined | More detailed, comprehensive |
Customer Service Ratings
Fidelity Life
- BBB Rating: A+ (Accredited)
- NAIC Complaints: Higher than average for company size
- J.D. Power: Not included in studies
- Customer Reviews: Mixed – praise for speed, some complaints about communication
- Claims Paying: Strong history of over 128 years
AIG / Corebridge
- BBB Rating: F (Not Accredited)
- NAIC Complaints: Below average (good)
- J.D. Power: 744/1000 (below industry average)
- Customer Reviews: Mixed – strong on claims, some process complaints
- Claims Paying: Excellent track record
Understanding the Ratings
BBB ratings and NAIC complaint ratios don’t tell the complete story. Both companies successfully pay billions in claims annually and have decades of reliable service. Customer service experiences vary widely based on individual circumstances, agent quality, and specific situations. Consider these ratings as one factor among many, not the sole decision driver.
Professional Insight
“In our experience, placing policies with both companies, Fidelity excels at quick, straightforward cases where clients prioritize speed. AIG provides excellent service for complex situations requiring detailed underwriting and sophisticated products. Both honor their commitments and pay claims reliably.”
– InsuranceBrokers USA – Management Team
Advantages of Choosing Fidelity
Key insight: Fidelity’s strengths center on accessibility, speed, and specialized senior coverage—making them excellent for specific market segments.
Fidelity’s Core Advantages
- Rapid Approval Process: Many applicants get same-day decisions, providing peace of mind quickly
- No-Exam Options Widely Available: Simplified underwriting makes coverage accessible without medical hassles
- Senior Market Expertise: 128 years of experience serving ages 50+ with specialized products
- Guaranteed Issue Available: Coverage options even with serious health conditions
- Straightforward Products: Easy to understand options without overwhelming complexity
- Competitive Final Expense: Purpose-built burial insurance at competitive rates
- Medical Exam Flexibility: Can postpone exams up to 6 months after approval in some cases
- BBB Accreditation: A+ rating provides additional consumer confidence
- Long Operating History: 128 years demonstrates remarkable stability and reliability
When Fidelity is the Smart Choice
You Need Coverage Fast
Perfect Fit: If time is critical—perhaps you’re about to travel, have a sudden health concern, or just realized you’re uninsured—Fidelity’s rapid approval process can provide protection in hours or days rather than weeks.
You’re Age 50 or Older
Designed For You: Fidelity’s products are specifically engineered for mature adults. The entire company understands senior needs, pricing is competitive for this age group, and underwriting accommodates age-related health issues.
You Want to Avoid Medical Exams
Simplified Path: Whether due to needle phobia, busy schedule, or health concerns, Fidelity’s no-exam options provide legitimate coverage without the traditional medical underwriting hassle.
You Need Final Expense Coverage
Specialized Products: If your primary goal is ensuring funeral and burial costs are covered (typically $5,000-$40,000), Fidelity’s final expense products are purpose-built for this need with appropriate pricing and coverage limits.
Advantages of Choosing AIG
Key insight: AIG’s strengths lie in product variety, customization, high coverage limits, and comprehensive permanent life options—ideal for sophisticated planning.
AIG’s Core Advantages
- Industry-Leading Term Flexibility: 18 different term lengths (10-35 years) allow precise coverage matching
- Longest Available Terms: 35-year terms are the longest in the industry from a major insurer
- High Coverage Capacity: Easily underwrite $5M-$10M+ policies for high-income earners
- Comprehensive Product Portfolio: Term, whole life, GUL, IUL, and VUL all from one trusted carrier
- Included Living Benefits: QoL riders provide chronic illness protection without extra cost
- Competitive for Health Conditions: Often better rates than competitors for diabetes, Crohn’s, and other conditions
- Global Company Stability: Massive scale and international presence provide exceptional security
- Sophisticated Estate Planning: Products designed for complex business and estate strategies
- Strong Underwriting: A Thorough process can result in better classifications for healthy applicants
- Multiple Rating Agency Validation: Rated by A.M. Best, S&P, and Moody’s—all confirm strength
When AIG is the Smart Choice
You Need Large Coverage Amounts
High Limits Expertise: If you need $1M, $3M, $5M, or even $10M+ in coverage, AIG has the capacity, expertise, and competitive pricing for high face amount policies. They underwrite these sizes routinely without difficulty.
You Want Precise Term Length
Perfect Timing: Why pay for 20 years when you only need 17? Or settle for 20 when you need 23? AIG’s 18-term options let you match coverage exactly to your specific needs—like years until retirement, mortgage payoff, or children’s independence.
You’re Seeking Permanent Life Insurance
Comprehensive Options: If you want whole life, guaranteed universal life, indexed universal life, or variable universal life, AIG offers all of these with competitive features. Their IUL and GUL products are particularly strong in the marketplace.
You’re a Healthy Applicant Under 60
Competitive Pricing: AIG’s thorough underwriting often results in excellent rates for healthy, younger applicants. If you’re in good health, their comprehensive evaluation can work in your favor with preferred or preferred plus classifications.
You Value Living Benefit Protection
Included Features: AIG’s QoL (Quality of Life) riders provide accelerated death benefit access for terminal, chronic, or critical illness—included on many policies at no additional cost. This adds significant value beyond traditional life insurance.
Making Your Decision: Which Company is Right for You?
Key insight: The “right” choice depends entirely on your specific situation—there’s no universally superior company, only the best fit for your individual needs.
Decision Framework
Choose Fidelity If:
- You’re age 50 or older
- You need coverage quickly (days, not weeks)
- You want to avoid medical exams
- You need final expense/burial coverage
- You prefer simple, straightforward products
- You have health issues, making traditional underwriting difficult
- Coverage needs are modest ($5K-$150K range)
Choose AIG If:
- You need high coverage ($500K-$10M+)
- You want precise term length (11, 17, 23, 35 years, etc.)
- You’re seeking permanent life (IUL, GUL, VUL)
- You’re under 60 and in good health
- You value living benefit riders
- You need sophisticated estate planning
- You want comprehensive product options
Common Decision Scenarios
| Your Situation | Better First Choice | Why |
|---|---|---|
| 62-year-old retiree, $50K final expense | Fidelity | Specializes in senior final expense with fast approval |
| 35-year-old parent, $2M for 22 years | AIG | High coverage capacity and a precise 22-year term available |
| 55-year-old, $300K, need it fast | Fidelity | Rapid approval process, designed for this age/coverage |
| 40-year-old, $1M, want IUL for retirement | AIG | Strong IUL products with comprehensive features |
| 70-year-old with health issues, guaranteed issue needed | Fidelity | Offers guaranteed issue products with no health questions |
| 28-year-old professional, $3M for 30 years | AIG | Competitive rates for young/healthy, high coverage expertise |
The Smart Approach: Compare Both
Why choose when you can compare? The smartest strategy is obtaining quotes from both Fidelity and AIG for your specific situation. Pricing and offers can vary significantly based on your unique profile. What matters most is:
- Which company offers better rates for YOUR specific age, health, and coverage needs
- Which products align with YOUR specific goals (final expense vs. wealth building, etc)
- Which application process suits YOUR timeline and preferences
Working with an independent agent who represents both companies ensures you get an objective comparison and the best possible outcome.
Important Considerations
Don’t choose based on company name alone. Both Fidelity and AIG are reputable, financially sound companies with decades of proven performance. Your decision should be driven by:
- Which products fit your specific needs
- Which offers better pricing for your profile
- Which application process matches your preferences
- Which company is designed to serve people in your situation
Both companies will reliably honor their commitments—choose based on practical fit, not brand loyalty.
Frequently Asked Questions
Which company has better financial strength ratings?
AIG has a slightly higher A.M. Best rating (A vs. A-) and is rated by more agencies (S&P and Moody’s in addition to A.M. Best). However, both companies have excellent financial strength ratings, indicating a strong ability to pay claims. Fidelity’s A- rating and 128-year history demonstrate remarkable stability. Either company is financially sound for long-term coverage.
Can I get life insurance without a medical exam?
Fidelity specializes in no-exam coverage and offers it widely across most products. AIG offers no-exam options for smaller face amounts but typically requires medical exams for larger coverage amounts ($500K+) and comprehensive underwriting. If avoiding medical exams is a priority, Fidelity is generally the better choice.
Which company is better for seniors over 60?
Fidelity is generally better positioned for seniors, with products specifically designed for ages 50-85, including final expense coverage, guaranteed issue options, and senior whole life. Their underwriting is tailored to mature applicants. While AIG serves seniors, their strength is in younger to middle-aged applicants with high coverage needs.
Who offers lower rates—Fidelity or AIG?
Neither company is consistently cheaper across all ages and situations. AIG tends to be more competitive for younger (under 50), healthy applicants seeking large coverage amounts. Fidelity often offers better rates for applicants age 50+, particularly for final expense and modest coverage amounts. Get personalized quotes from both for an accurate comparison.
Can I get $2 million or more in coverage from either company?
Yes, from both, but AIG is better equipped for high face amounts. Fidelity’s RAPIDecision Life offers up to $2M but is less focused on jumbo coverage. AIG routinely underwrites $3M-$10M+ policies and has specialized underwriting for high-net-worth individuals. For coverage over $1M, AIG is typically the stronger choice.
Does either company offer indexed universal life (IUL)?
AIG offers comprehensive IUL products with strong features for wealth accumulation and retirement planning. Fidelity’s product lineup focuses on simpler term and whole life products without IUL options. If you’re interested in IUL for cash value growth and retirement income strategies, AIG is the clear choice.
Which company has better customer service?
Customer service experiences are mixed for both companies. Fidelity has a BBB A+ rating but higher-than-average NAIC complaints. AIG has below-average NAIC complaints but a low BBB rating (F, not accredited). Both companies pay claims reliably. Customer service quality often depends more on the specific agent or representative you work with than the company itself.
How long does approval take with each company?
Fidelity’s rapid approval process can provide decisions in hours to days, with many applicants getting same-day approval. AIG’s more comprehensive underwriting typically takes 2-4 weeks for full approval, though they offer accelerated underwriting for some applicants that can be faster. If time is critical, Fidelity has a significant speed advantage.
Ready to Compare Fidelity and AIG for Your Situation?
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