Navigating American Fidelity Disability Insurance: Reviews, Coverage Details, and Alternatives

As someone who has researched disability insurance extensively, I often get asked about American Fidelity Assurance Company. They are one of the largest disability insurance providers in the U.S. But are their policies right for you?

In this comprehensive guide, I’ll provide an in-depth look at American Fidelity disability insurance. I’ll share customer reviews, explain their coverage options, and suggest some alternatives to consider.

Overview of American Fidelity Disability Insurance

American Fidelity offers disability insurance primarily through employers, unions and associations. Some key things to know

• Founded in 1960 and based in Oklahoma
• Sells life, health, disability, and other insurance products
• Disability plans guaranteed issue – no medical exam required
• Offer both short-term and long-term disability policies
• Replaces 40-60% of income depending on plan
• “Own occupation” definition of disability

They have been selling disability coverage for decades and have an A+ rating with the Better Business Bureau. However, it’s still important to look at actual customer feedback.

Reviews of American Fidelity Disability Insurance

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

• Delayed claim approvals or denials
• Difficulty getting claim status updates
• Perception of excessive document requests
• Poor customer service response times
• Claims mishandled or communications unclear

Many negative reviews accuse American Fidelity of deliberately stonewalling valid claims Some report having to fight for 6 months to over a year to get benefits approved

It’s worth noting dissatisfied customers are more likely to post reviews. And disability claims often require extensive details. But the volume of complaints related to American Fidelity’s claims handling is a red flag.

Details of American Fidelity’s Disability Insurance Coverage

American Fidelity offers both short-term and long-term disability policies. Here are some details on what each covers:

Short-Term Disability

• Benefits for up to 6 months
• 50-60% income replacement
• Elimination period: 0-14 days
• Pre-existing condition exclusion: 3/12
• Offset by sick pay, workers’ compensation
• Partial disability benefits on some plans
• Mental health claims may be capped at 24 months

This covers temporary injuries or illnesses. The elimination period is the waiting time before benefits start after becoming disabled. The 6 month limit and mental health cap are disadvantages.

Long-Term Disability

• Benefits to age 65/Social Security Normal Retirement Age
• 40-60% monthly income replacement
• Elimination period: 90-365 days
• Pre-existing condition exclusion: 12/12
• “Own occupation” definition for 24 months
• Includes partial disability benefits
• Mental health claims capped at 24 months

This protects against disabilities lasting over 6 months. The longer elimination period helps lower premium costs. Downsides are the pre-existing condition window, mental health cap, and income replacement on the lower end.

Overall, American Fidelity’s base plans are similar to competitors like Unum, Guardian, and Mutual of Omaha. They do not offer more robust “enhanced” coverage options.

Alternatives to American Fidelity Disability Insurance

Here are some top-rated disability insurance carriers to also consider:

• Principal – Strong own-occ coverage. Customizable plans.
• Guardian – Known for fast claims and support. Own-occ to 5 years.
• Mutual of Omaha – Flexible partial disability benefits. Specialty options.
• Ameritas – Competitive pricing for small employers. Own-occ to 5 years.
• Assurity – Affordable rates. Own-occ to 5 years, partial benefits to 12 months.
• Breeze – Digital insurer with customizable short and long term options. Portable between jobs.

The right disability insurance depends on your profession, budget, and priorities around coverage, flexibility, and service. I recommend comparing quotes from multiple insurers to find your best fit.

Should You Get American Fidelity Disability Insurance?

American Fidelity has offered disability policies for over 60 years. However, concerning claims handling reviews give me pause about relying on their benefits long-term.

Before committing, thoroughly research your disability insurance options. Make sure you find a provider with a solid reputation for paying claims fairly. This will give you confidence your hard-earned premiums are money well spent.