American Fidelity Disability Insurance: Reviews, Coverage, and Alternatives

Getting disabled and being unable to work can be financially devastating. That’s why having disability insurance is critical – it provides partial income replacement if you become too injured or ill to work. American Fidelity Assurance Company is one of the largest disability insurers, but are they the right choice for you?

In this comprehensive guide, we’ll provide an overview of American Fidelity disability insurance, look at customer reviews and complaints, compare their coverage to competitors, and offer some alternatives to consider.

About American Fidelity Disability Insurance

American Fidelity is headquartered in Oklahoma and has been selling insurance since 1960. They offer a range of insurance products including life, health, disability, annuities, and more.

Some key facts about American Fidelity’s disability policies:

• Offered through employers – Their disability plans are sold through employers, associations, and unions. You cannot buy individual policies directly.

• Short and long-term options – They have disability coverage for accidents/illnesses lasting under 6 months and over 6 months.

• Guaranteed issue – No medical exams required to qualify during initial enrollment period.

• Partial income replacement – Benefits usually replace 40-60% of income depending on plan.

• Own occupation protection – You are considered disabled if unable to work your regular occupation.

• Return to work benefits – Some plans offer partial benefits if you return part-time.

While American Fidelity has been around for decades and has an A+ BBB rating, it’s still important to look at specific customer feedback on their disability insurance.

American Fidelity Disability Insurance Reviews

American Fidelity currently has 1.05 out of 5 stars on the BBB website, based on 61 customer reviews. The most common complaints include:

• Delayed or denied claims

• Difficulty getting answers and status updates

• Perceived excessive requests for records and documents

• Poor customer service and response times

• Claims mishandled or miscommunicated

Many of the negative reviews accuse American Fidelity of deliberately stonewalling, mishandling, or denying rightful disability claims. Some customers report having to fight for months or over a year to get benefits approved.

However, it’s worth noting that with any insurance company, most people leave reviews when they’ve had problems. Satisfied claimants are less likely to post positive reviews. And disability claims often get complicated, requiring extensive details to validate disabilities.

Still, the volume and nature of complaints related to American Fidelity’s claims handling is concerning for potential customers. Disability insurance is a long-term commitment, so you want confidence your insurer will be fair and responsive.

American Fidelity Disability Insurance Coverage

American Fidelity offers both short-term and long-term disability policies. Here’s an overview of what each type of coverage includes:

Short-Term Disability

• Benefit duration: Up to 6 months
• Benefit amount: 50-60% of salary
• Elimination period: 0-14 days
• Pre-existing condition exclusion: 3/12
• Benefits offset: Sick pay, worker’s compensation
• Partial disability benefit: Included on some plans
• Mental health limitation: Usually 24 months

This covers temporary disabilities from accident or illness. The elimination period is the waiting time before benefits kick in after becoming disabled. American Fidelity’s short-term coverage is decent but has some limitations. The benefit duration is relatively short and mental health claims may be capped.

Long-Term Disability

• Benefit duration: To age 65/Social Security Normal Retirement Age
• Monthly benefit: 40-60% of salary
• Elimination period: 90-365 days
• Pre-existing condition exclusion: 12/12
• Own occupation period: 24 months
• Partial disability benefit: Included
• Mental health limitation: 24 months

This protects against disabilities that last over 6 months. The longer elimination period helps reduce premium costs. Definition of disability lenient for first 24 months. Downsides are the pre-existing condition window, capped mental health claims, and income replacement on the lower end.

Overall, American Fidelity’s base disability coverage includes common exclusions and limitations similar to other leading insurers like Unum, Guardian, and Mutual of Omaha. They do not offer more robust “enhanced” plans.

Alternatives to American Fidelity Disability Insurance

Here are some other highly-rated disability insurers to consider if you want to compare options:

• Principal – Offers strong own-occupation coverage and retirement protection. Customizable plans.

• Guardian – Known for fast claims processing and support. Own-occ option up to 5 years.

• Mutual of Omaha – Flexible partial disability benefits. Specialty coverage like student loan protection.

• Ameritas – Focuses on small businesses. Own-occ option up to 5 years. Enhanced partial benefits.

• Assurity – Competitive pricing and plan options. Own-occ period up to 5 years, partial benefits up to 12 months.

• Breeze – Digital insurer with customizable short and long-term disability options. Coverage can follow you between jobs.

The right disability insurer for you depends on your profession, budget, and priorities for coverage, flexibility, and customer service. Talk to an independent insurance agent to go over your specific needs and all available options.

While American Fidelity has been offering disability coverage for decades, their customer service record gives pause. Before relying on their benefits long-term, be sure to research all your disability insurance options.

The last thing you want is to pay premiums for years, only to end up fighting your insurer when you actually become disabled. Find a company known for handling claims fairly to gain true peace of mind.