Is Fidelity Security Life a Good Annuity Company?
Yes, Fidelity Security Life Insurance Company is a legitimate, independently owned carrier with a solid financial strength record. It holds an AM Best A- (Excellent) rating, has been issuing policies since receiving its charter in 1969, and is headquartered in Kansas City, Missouri. One critical point upfront: Fidelity Security Life has no connection to Fidelity Investments. They share only the word “Fidelity” in their names. This causes genuine confusion in search results and conversations – and this review will clarify that distinction clearly.
Fidelity Security Life at a Glance
| Detail | Information |
|---|---|
| Full Legal Name | Fidelity Security Life Insurance Company |
| Common Abbreviation | FSL |
| Ownership Structure | Independent (not part of a larger financial group) |
| Charter Year | 1969 |
| Headquarters | Kansas City, Missouri |
| Total Assets | Over $1 billion |
| Annual Premiums | $1.6 billion (approximate) |
| Capital & Surplus | Over $350 million |
| AM Best Rating | A- (Excellent) – affirmed by AM Best |
| Primary Products | MYGA (TaxVantage series), fixed annuities, supplemental health |
Fidelity Security Life vs. Fidelity Investments – What You Need to Know
Fidelity Security Life Insurance Company and Fidelity Investments are entirely unrelated companies. Fidelity Investments (officially FMR LLC) is a Boston-based brokerage and asset management firm founded in 1946. Fidelity Security Life is a Kansas City insurance company chartered in 1969. They have separate ownership, separate products, separate financial ratings, and operate in completely different segments of the financial services industry.
The confusion matters because buyers sometimes research one and inadvertently purchase the other, or assume that Fidelity Security Life carries the brand recognition and financial scale of Fidelity Investments. It does not – FSL is an independent mid-size insurer, not a trillion-dollar asset management firm. Both are legitimate and credible in their respective lanes. If you are looking for an annuity from Fidelity Investments, note that Fidelity does offer annuities through third-party carriers via its platform – but Fidelity Security Life is not one of them.
From an SEO and research standpoint, this name confusion actually works in FSL’s favor with informed buyers: once they understand the distinction, FSL stands on its own merits as an A-rated independent carrier with a strong surplus position and a track record that stretches back over 55 years.
Fidelity Security Life Financial Strength
| Rating Agency | Rating | Category | Outlook |
|---|---|---|---|
| AM Best | A- | Excellent | Stable |
| S&P Global | Not rated publicly | – | – |
| Moody’s | Not rated publicly | – | – |
FSL’s A- rating from AM Best reflects strong capitalization (over $350 million in surplus), a diversified book of business, and over five decades of operating history as an independent carrier. The rating places FSL in the same tier as American National, Pacific Life, and Protective Life. Buyers requiring A or A+ minimum financial strength should compare higher-rated alternatives. Verify the current AM Best rating directly at ambest.com before finalizing any contract.
As a Missouri-domiciled carrier, FSL policyholders benefit from Missouri’s state guaranty association coverage for annuity benefits. Residents of other states are protected by their own state’s association, typically up to $250,000 per contract owner per company. Review your state’s specific limits at our state guaranty association guide or at NOLHGA.com.
What Annuity Products Does Fidelity Security Life Offer?
FSL’s annuity lineup centers on its TaxVantage series of multi-year guaranteed annuities, with fixed annuity options also available. Products are distributed through independent agents and financial institutions nationwide.
- TaxVantage Multi-Year Guaranteed Annuity 3 – 3-year MYGA with a fixed guaranteed interest rate for the full term. Single premium, tax-deferred growth. Competitive rates for short-term accumulation.
- TaxVantage Multi-Year Guaranteed Annuity 5 – 5-year MYGA. One of FSL’s most popular products for buyers looking to park a rollover or savings lump sum for a defined period. See the TaxVantage MYGA 5 product review for current rates and contract details.
- TaxVantage Multi-Year Guaranteed Annuity 7 – 7-year MYGA. Suitable for buyers with a longer time horizon who want to maximize the guaranteed rate. See the TaxVantage MYGA 7 product review for full details.
- Fixed deferred annuities – FSL also offers traditional fixed deferred annuity products with renewal rate provisions beyond the initial guarantee period.
TaxVantage products are compound-interest MYGAs, meaning interest is credited annually to the full account balance – not just the original deposit. Standard penalty-free withdrawals of 10% of the account value per year are available after the first contract year. Surrender charges apply to excess withdrawals. Learn more about how surrender charges work before selecting a term length.
Current rates from Fidelity Security Life are shown below and update automatically:
Rates shown are for informational purposes only and subject to change without notice. Products marked SI use simple interest, effective compound yield is lower than the stated rate. Minimum premiums shown are for non-qualified (after-tax) funds. Always verify current rates with a licensed annuity professional before purchasing.
FSL products are available in most states through independent insurance agents. The company distributes through both traditional independent agent channels and institutional/bank distribution networks – a broader distribution footprint than many similarly sized carriers.
Fidelity Security Life Pros and Cons
Pros
- A- (Excellent) AM Best rating with a long operating track record backing it
- 55-plus year operating history as an independent insurer – not recently launched or rebranded
- Over $1 billion in total assets with $350 million-plus in capital and surplus
- Compound interest on TaxVantage MYGAs – full compounding on the growing balance each year
- Broad distribution – available through independent agents and institutional channels across most states
- Independent ownership – not subject to private equity or asset manager ownership dynamics
- Broad product range including MYGAs, fixed annuities, and supplemental health coverage
Cons
- Name confusion with Fidelity Investments – the shared “Fidelity” name creates consistent buyer confusion and requires extra due diligence
- A-, not A or above – buyers requiring A or A+ minimum financial strength will need to consider other options
- Only AM Best rated – no S&P or Moody’s rating limits multi-agency comparison
- No variable or fixed index annuity products – FSL’s lineup is fixed and MYGA only; buyers wanting FIA or VA products need a separate carrier
- Lower brand recognition compared to household-name carriers like Athene, Midland National, or American National
Who Is Fidelity Security Life Best For?
FSL fits buyers who want a straightforward MYGA from an independent, long-tenured carrier at competitive A- tier rates. A buyer rolling over a $200,000 IRA into a 5-year TaxVantage MYGA gets a clear proposition: a fixed rate locked for five years, compound crediting, and an issuer with 55-plus years of operating history and a solid surplus position. No private equity ownership dynamics, no complicated product overlays, no asset manager credit strategy to evaluate.
The TaxVantage 7 is a good fit for buyers in their late 50s to early 60s who want to set and forget a retirement accumulation bucket for seven years. A 60-year-old buyer who locks in a 7-year TaxVantage will have the full guaranteed balance available at age 67 – lined up neatly with Social Security and Medicare milestones. The compound interest structure means the account value grows faster in later years as the balance builds.
FSL is less suited for buyers who need income immediately (no SPIA product), want market-linked upside (no FIA), or require A+ minimum financial strength for peace of mind. For those buyers, carriers like Guardian, MassMutual, or Midland National may be a better fit. Use our live rate comparison tool to benchmark FSL’s current TaxVantage rates against A+ alternatives before deciding.
The “Fidelity” Brand Confusion – A Practical Guide
When you search for “Fidelity annuity,” results will include both Fidelity Investments and Fidelity Security Life – and the distinction matters enormously. Fidelity Investments offers annuities through its brokerage platform, but those contracts are issued by third-party insurance carriers like MetLife, New York Life, and Allianz. You are not buying a Fidelity-manufactured insurance product when you purchase an annuity through Fidelity Investments. You are buying a third-party carrier’s contract through Fidelity’s distribution channel.
Fidelity Security Life, on the other hand, is the actual insurance carrier that manufacturers and issues the contract. When you buy a TaxVantage MYGA from FSL, the issuing carrier is FSL – an A- rated, 55-year-old Missouri insurance company. No confusion there once you understand the structure. The SEO irony is that FSL benefits from this name overlap: buyers who land on an FSL review while searching for “Fidelity annuity” often discover a competitive product they would have otherwise missed.
How the TaxVantage Name Relates to Tax Planning
The TaxVantage name points to a real benefit. Interest earned inside a non-qualified (after-tax) FSL MYGA grows tax-deferred – you do not pay federal income tax on credited interest until you take a distribution. For a 63-year-old buyer parking $150,000 in a 5-year TaxVantage MYGA, this means five years of compound growth without a 1099-INT arriving each February. That compares favorably to a bank CD or Treasury note, where interest is reportable and taxable each year regardless of whether you withdraw it.
The tax deferral advantage is real but also has limits. Withdrawals from non-qualified annuities are taxed as ordinary income on the earnings portion. Early withdrawals before age 59.5 can trigger a 10% IRS penalty in addition to income tax. And the longer you defer, the larger the taxable portion becomes – meaning the tax bill at distribution can be meaningful. A tax advisor can help you map out the right withdrawal sequencing strategy. For a general overview of annuity taxation, IRS Publication 575 is the authoritative reference.
How to Buy a Fidelity Security Life Annuity
FSL annuities are available through licensed independent insurance agents and select institutional distribution channels. The application process is straightforward: choose your term (3, 5, or 7 years), confirm your premium amount (verify the current minimum with your agent), and review the surrender charge schedule and the free look period terms before signing. Most applications are processed within a week.
For IRA rollovers into a TaxVantage MYGA, your agent coordinates the direct transfer from your existing IRA custodian. The funds move directly to FSL without passing through your bank account, preserving the tax-free rollover treatment. Confirm the rollover is processed as a direct transfer or trustee-to-trustee transfer, not a 60-day indirect rollover, to avoid inadvertent tax withholding.
My Annuity Store can compare FSL’s TaxVantage rates against 20-plus competing MYGA carriers. Request a free quote or browse our live rate comparison tool to see where FSL’s rates rank today. To understand how FSL compares to other carriers across broader criteria, visit our annuity company comparison hub.
Is Fidelity Security Life the same as Fidelity Investments?
No. Fidelity Security Life Insurance Company (FSL) and Fidelity Investments (FMR LLC) are entirely separate, unrelated companies. FSL is an independent Kansas City, Missouri insurance company chartered in 1969. Fidelity Investments is a Boston-based brokerage and asset management firm founded in 1946. They share only the word “Fidelity” in their names. Fidelity Investments does offer annuities through its platform, but they are issued by third-party carriers – not by Fidelity Security Life.
What does “TaxVantage” mean in an FSL annuity?
TaxVantage is FSL’s brand name for its MYGA product series. The “tax advantage” reference is to tax-deferred growth: interest credited inside a non-qualified MYGA is not taxed in the year it is earned. It compounds tax-deferred until you take a distribution. This can meaningfully improve total returns compared to a bank CD, where interest is taxed annually. For IRA-funded MYGAs, the tax deferral is already built in, so the TaxVantage benefit applies primarily to non-qualified (after-tax) money.
How does Fidelity Security Life compare to other independent carriers?
FSL is comparable to other independently owned, A- rated MYGA carriers like American National (before its 2022 Brookfield acquisition), Protective Life, and Pacific Life. Its $1 billion-plus asset base and $350 million-plus surplus are solid for its size. FSL’s main differentiators are its independent ownership, its 55-year track record, and a distribution footprint that spans both independent agents and institutional channels. Use our carrier comparison hub to stack FSL against specific competitors by rating, product type, and rates.
What is the minimum investment for an FSL TaxVantage MYGA?
Minimum premium requirements vary by product and distribution channel. Confirm the current minimum with a licensed agent before applying. TaxVantage MYGAs accept both IRA rollovers and non-qualified (after-tax) money. There is no published maximum premium. The standard 10% penalty-free withdrawal provision is available after the first contract year. Review the full surrender charge schedule before selecting your term.
Other Annuity Companies to Consider
- Kansas City Life Insurance Company Review
- American National Insurance Company (ANICO) Review
- Protective Life Insurance Company Review
- Compare all annuity companies
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