Company Overview
Fidelity Life has been providing life insurance to New Zealanders for over 100 years, making it one of the longest-established insurers in the country. Despite this lengthy history, Fidelity Life operates as a smaller player compared to giants like AIA and Southern Cross. The company focuses on providing straightforward, no-frills insurance products at competitive prices.
In recent years, Fidelity Life has positioned itself as a value-oriented provider, targeting cost-conscious consumers and younger families who want basic but reliable trauma insurance coverage. While they lack some of the bells and whistles of premium providers, they make up for it with simpler policies and competitive pricing for certain demographics.
Key Facts:
- • Founded: 1920s (100+ years in NZ)
- • Structure: Private company, Australian-owned
- • Market Position: Mid-tier provider
- • Focus: Value-oriented, straightforward policies
Financial Strength:
- ✓ A rating from Standard & Poor's
- ✓ Part of LifeCorp insurance group
- ✓ Solid capital base and reserves
- ⚠ Smaller scale than market leaders
Coverage Analysis
Conditions Covered
Fidelity Life trauma insurance covers 40 conditions, positioning them in the middle of the market. While this is better than budget providers, it's fewer than premium options like AIA (44), Asteron (42), or Chubb (46). However, they cover all the major conditions responsible for 90%+ of trauma claims.
🫀 Cardiovascular Conditions (7)
- ✓ Heart Attack - Standard definition requiring troponin elevation
- ✓ Stroke - Permanent neurological deficit required
- ✓ Coronary Artery Bypass Surgery - Open-heart surgery
- ✓ Heart Valve Replacement - Surgical replacement
- ✓ Aorta Surgery - Major vessel repair
- ✓ Cardiomyopathy - Severe heart muscle disease
- ✓ Chronic Heart Failure - Permanent impairment
🎗️ Cancer Conditions (5)
- ✓ All Invasive Cancers - Any malignant tumor
- ✓ Benign Brain Tumor - Requiring surgery/radiation
- ✓ Chronic Lymphocytic Leukemia - RAI Stage 1+
- ✓ Carcinoma in Situ - Early stage (partial benefit)
- ✓ Early Prostate Cancer - Stage A/B (partial)
🧠 Neurological Conditions (9)
- ✓ Multiple Sclerosis - Confirmed diagnosis
- ✓ Parkinson's Disease - Unable to perform ADLs
- ✓ Motor Neurone Disease - Progressive weakness
- ✓ Alzheimer's Disease - Permanent impairment
- ✓ Dementia - Severe cognitive decline
- ✓ Bacterial Meningitis - With complications
- ✓ Encephalitis - Brain inflammation
- ✓ Muscular Dystrophy - Progressive muscle disease
- ✓ Permanent Coma - Extended unconsciousness
🏥 Organ & Other Conditions (19)
- ✓ Major Organ Transplant - Heart, lung, liver, kidney
- ✓ Kidney Failure - Requiring dialysis
- ✓ Liver Failure - End-stage disease
- ✓ Chronic Lung Disease - Severe respiratory impairment
- ✓ Aplastic Anemia - Bone marrow failure
- ✓ Blindness - Permanent loss of sight
- ✓ Deafness - Permanent hearing loss
- ✓ Loss of Limbs - Amputation/total loss of use
- ✓ Paraplegia - Lower body paralysis
- ✓ Quadriplegia - Four-limb paralysis
- ✓ Loss of Speech - Permanent inability
- ✓ Severe Burns - 20%+ body surface
- ✓ HIV (Occupational) - Work-related
- ✓ Medically Acquired Hepatitis - From treatment
- ✓ Intensive Care - 28+ days ICU
- ✓ Out of Hospital Cardiac Arrest - With evidence
- ✓ Primary Pulmonary Hypertension - Severe
- ✓ Total Permanent Disablement - Cannot work
- ✓ Terminal Illness - Life expectancy under 12 months
Partial Benefit Payments
Fidelity Life offers 20% partial benefit payments for early-stage conditions. This is lower than competitors like AIA or Asteron (25%) and Chubb (30%), but provides some financial support for less severe diagnoses while keeping your full policy intact.
Example: With a $200,000 policy, if diagnosed with carcinoma in situ, you receive $40,000 (20%). Your policy continues with $160,000 remaining coverage for other conditions.
Pricing & Value Analysis
Sample Monthly Premiums
Fidelity Life positions itself competitively for younger applicants (under 40), but premiums increase significantly for older age groups. Their sweet spot is 25-40 year olds seeking basic to moderate coverage amounts.
| Age/Gender | $200,000 | $500,000 | vs Market |
|---|---|---|---|
| Male, 30 | $41/month | $98/month | Competitive |
| Female, 30 | $52/month | $128/month | Competitive |
| Male, 40 | $82/month | $198/month | Average |
| Female, 40 | $108/month | $265/month | Average |
| Male, 50 | $178/month | $438/month | Above Average |
| Female, 50 | $234/month | $578/month | Above Average |
*Based on non-smoking, healthy individuals with level premiums. Actual quotes may vary based on health and lifestyle factors.
Value for Money Assessment
What You're Getting:
- • Decent Coverage: 40 conditions covers most trauma scenarios
- • Competitive Pricing: Good rates for under-40s
- • Established Insurer: 100+ year history
- • Straightforward Policies: Easy to understand
What You're Missing:
- • Fewer Conditions: 40 vs 44-46 from premium providers
- • Lower Partial Benefits: 20% vs 25-30% from competitors
- • Slower Claims: 45-60 days vs 30 days industry average
- • Limited Extras: No wellness programs or medical concierge
Claims Experience
What to Expect
Lower than industry average
Slower than competitors
Functional but limited
4-Step Claims Process
Initial Claim Lodgement
Contact Fidelity Life to notify them of your diagnosis. Can be done by phone or online claim form. You'll need basic details of your condition and treating specialists. Claims team will send you paperwork package.
Medical Evidence Gathering
Complete claim forms and provide authority for Fidelity to contact your doctors. They'll request medical reports, test results, and specialist opinions. This stage can take 2-4 weeks depending on how quickly your healthcare providers respond.
Assessment Phase
Claims assessor reviews your case against policy definitions. May request additional information or independent medical examination. Limited communication during this phase. Typical timeline: 3-5 weeks from complete documentation.
Decision & Payment
Receive written decision. If approved, payment typically within 7-10 business days via bank transfer. If declined, you'll receive explanation and information about dispute resolution process.
Important Notes on Claims
- • Slower than average: Fidelity's 45-60 day claims processing is notably slower than industry leaders (30 days)
- • Limited support: No dedicated claims advocate or medical concierge service
- • 89% acceptance: Slightly lower than market leaders who accept 92-95% of valid claims
- • Basic communication: Less frequent updates during assessment compared to premium providers
Underwriting & Application Process
Application Process
Fidelity Life uses standard medical underwriting. The application process is relatively straightforward but can be slower than more digitally-advanced competitors. Most applications are processed through advisers rather than direct online applications.
Information Required:
- • Full medical history (10 years)
- • Current medications and treatments
- • Family medical history
- • Lifestyle factors
- • Occupation and income
- • Height, weight, BMI
Typical Timeline:
- ✓ Days 1-3: Initial application with adviser
- ✓ Days 4-10: Medical history review
- ✓ Days 11-21: Underwriting assessment
- ✓ Days 22-28: Decision and policy issued
- ✓ Coverage starts: Upon first premium payment
Medical Examinations
Required for: Coverage over $300,000, applicants over 45, or those with health concerns.
What's involved: Basic health check, blood pressure, blood tests, urine sample. Sometimes ECG or additional tests. Fidelity arranges and pays for required exams.
How Does Fidelity Life Compare?
Fidelity Life sits in the middle of the market - more comprehensive than budget options but less feature-rich than premium providers. For younger buyers seeking basic coverage, they can be competitive. However, most buyers would benefit from comparing multiple providers.
| Feature | Fidelity Life | AIA | Partners Life | Asteron |
|---|---|---|---|---|
| Conditions Covered | 40 | 44 | 40 | 42 |
| Partial Benefits | 20% | 25% | 20% | 25% |
| Claims Processing | 45-60 days | 30 days | 28-32 days | 35 days |
| Children's Cover | $20,000 | $25,000 | $25,000 | $30,000 |
| Premium Cost (35yr) | Competitive | High | Competitive | Moderate |
| Best For | Young buyers | Comprehensive | NZ-owned value | Balance |
For Better Coverage
AIA or Asteron offer more conditions (42-44), higher partial benefits (25%), and faster claims processing.
- • 4-6 more conditions covered
- • 25% vs 20% partial benefits
- • 30-35 day claims vs 45-60 days
- • Better support services
For Better Value
Partners Life offers similar coverage with potentially better premiums and superior claims processing.
- • Same 40 conditions covered
- • Potentially 10-15% lower premiums
- • 28-32 day claims processing
- • 100% NZ-owned and operated
Pros & Cons
Advantages
- ✓ Competitive Pricing for Younger Applicants
Under-40s often get good value, particularly for $200K-$300K coverage amounts.
- ✓ Long-Established Provider
100+ years in New Zealand provides reassurance and proven track record.
- ✓ Straightforward Policies
Easy to understand terms without complicated add-ons or confusing options.
- ✓ Decent Coverage Scope
40 conditions covers the vast majority of trauma scenarios most people face.
- ✓ No Medical Exam for Lower Amounts
Coverage under $300K typically doesn't require medical examination for healthy applicants.
- ✓ Flexible Coverage Amounts
Range from $50,000 to $2,000,000 to suit different needs and budgets.
Disadvantages
- ✗ Slow Claims Processing
45-60 days average is significantly slower than industry leaders at 30 days.
- ✗ Lower Claims Acceptance Rate
89% acceptance vs 92-95% from market leaders raises concerns about claims outcomes.
- ✗ Fewer Conditions Than Competitors
40 conditions vs 42-46 from AIA, Asteron, and Chubb means less comprehensive coverage.
- ✗ Lower Partial Benefits
20% partial payments vs 25-30% from competitors reduces financial support for early-stage conditions.
- ✗ Limited Additional Services
No medical concierge, second opinions, or wellness programs that premium providers offer.
- ✗ Outdated Online Tools
Website and digital experience lag behind more modern competitors.
- ✗ Higher Premiums for Over-50s
Pricing becomes less competitive as you age, particularly past 50.
Who Should Choose Fidelity Life?
Fidelity Life is Suitable For:
- ✓ Young professionals (25-40 years) seeking competitive pricing for basic to moderate coverage.
- ✓ First-time buyers who want straightforward, easy-to-understand policies without complexity.
- ✓ Those wanting basic protection covering major trauma events without needing comprehensive extras.
- ✓ Budget-conscious buyers (under 40) willing to accept fewer features for lower premiums.
- ✓ Those comfortable with slower service and willing to wait 45-60 days for claims processing.
Consider Alternatives If:
- ✗ You're over 50 years old - Fidelity's premiums become less competitive with age.
- ✗ Fast claims processing matters - 45-60 days is too long when you need financial support quickly.
- ✗ You want comprehensive coverage - AIA, Asteron, or Chubb offer 42-46 conditions vs Fidelity's 40.
- ✗ Higher partial benefits are important - Competitors offer 25-30% vs Fidelity's 20%.
- ✗ You value additional services - Premium providers offer medical concierge, second opinions, wellness programs.
- ✗ Digital tools are important - Fidelity's online experience is dated compared to modern providers.
Frequently Asked Questions
Is Fidelity Life a good trauma insurance provider?
Fidelity Life is a decent mid-tier provider, particularly for younger buyers (under 40) seeking basic coverage at competitive prices. However, their slower claims processing (45-60 days vs 30 days industry average), lower claims acceptance rate (89% vs 92-95%), and fewer conditions covered (40 vs 42-46) mean most buyers would benefit from comparing alternatives like Partners Life, Asteron, or AIA before committing.
How long does Fidelity Life take to process trauma insurance claims?
Fidelity Life's average claims processing time is 45-60 days from submission of complete documentation. This is significantly slower than industry leaders like AIA (30 days), Partners Life (28-32 days), or Asteron (35 days). If you need fast financial support during a medical crisis, this extended timeline could be problematic. Consider asking about their fastest and longest processing times during application.
What partial benefits does Fidelity Life offer?
Fidelity Life pays 20% of your sum insured for early-stage conditions like carcinoma in situ (early cancer), early prostate cancer, or single-vessel angioplasty. Your policy continues with 80% remaining coverage. This is lower than competitors: AIA and Asteron offer 25%, while Chubb offers 30%. On a $200,000 policy, this means you'd get $40,000 from Fidelity vs $50,000 from AIA/Asteron or $60,000 from Chubb.
How does Fidelity Life compare to AIA for trauma insurance?
AIA is generally superior but more expensive. AIA offers 44 conditions vs Fidelity's 40, processes claims in 30 days vs 45-60 days, provides 25% partial benefits vs 20%, includes medical concierge services, and has a 95% claims acceptance rate vs 89%. However, AIA premiums are typically 20-30% higher. For comprehensive coverage and faster service, choose AIA. For basic coverage at lower cost (if under 40), Fidelity may suffice.
Can I apply for Fidelity Life trauma insurance online?
Fidelity Life's online application process is limited compared to modern providers. Most applications are done through financial advisers rather than direct online submission. Their website allows you to request information and start the process, but full underwriting typically requires phone consultations and paper forms. If you prefer a fully digital experience, consider Partners Life or AIA which offer more advanced online tools and applications.
Is Fidelity Life financially stable?
Yes, Fidelity Life has an A rating from Standard & Poor's and is part of the LifeCorp insurance group, indicating solid financial strength. They've been operating in New Zealand for over 100 years, which demonstrates long-term stability. However, they're a smaller player compared to giants like AIA (A++ rated) or Southern Cross. For maximum financial security, AIA or Chubb offer higher ratings, but Fidelity's A rating is considered strong and reliable.
What happens if Fidelity Life declines my claim?
If Fidelity declines your claim, you'll receive written explanation of why it doesn't meet policy definitions. You can: (1) Request internal review with additional medical evidence, (2) Lodge complaint with their complaints process, (3) Escalate to Insurance & Financial Services Ombudsman (free independent dispute resolution), or (4) Seek legal advice. Fidelity's 89% acceptance rate means 11% of claims are declined - higher than industry leaders at 5-8% decline rates.
Should I choose Fidelity Life or Partners Life for trauma insurance?
Partners Life generally offers better value for most buyers. Both cover 40 conditions, but Partners Life typically has: 10-15% lower premiums, 28-32 day claims processing vs 45-60 days, better online tools, 100% NZ ownership, and equivalent or better customer service. Fidelity might be competitive for under-30s seeking very basic coverage, but for most situations, Partners Life provides superior value. Get quotes from both to compare your specific situation.
Compare Fidelity Life with All Providers
Don't settle for one quote. Compare Fidelity Life against all major NZ providers to find the best coverage and pricing for your needs.
Get Quotes from All ProvidersFinal Verdict
3.5/5 - Adequate But Not Outstanding
Decent option but better alternatives exist
Fidelity Life provides adequate trauma insurance coverage with 40 conditions and competitive pricing for younger applicants. However, significant drawbacks including slow claims processing (45-60 days), lower claims acceptance rate (89%), reduced partial benefits (20% vs 25-30%), and lack of additional services mean most buyers would be better served by competitors offering superior value and service.
Our Recommendation: If you're under 40 and seeking basic coverage at competitive rates, Fidelity Life may be worth considering. However, we strongly recommend getting comparative quotes from Partners Life (often 10-15% cheaper with faster claims), Asteron (more conditions and better partial benefits), or AIA (comprehensive coverage with superior service). The extra 10 minutes spent comparing could save you thousands and provide significantly better coverage and claims experience when you need it most.