Fidelity offers term life insurance direct to consumers.

BOSTON--(BUSINESS WIRE)--May 21, 1997--

Nation's Largest Mutual Fund Organization First to Sell

Term Life Insurance through its own Insurance Company

Fidelity Investments, the nation's largest mutual fund company, today began offering term life insurance directly to consumers through its own insurance company. Fidelity Investments is the first mutual fund organization to offer term insurance "direct" through its own insurance company. This simple-to-understand, low-cost term insurance is underwritten and sold through Fidelity Investments Life Insurance Company (FILI).

"We believe that protecting for your family's financial future is as important as reaching your investment goals and that life insurance is an integral component of a sound financial plan," said Farrell Dolan, vice president of Fidelity Investments Life Insurance Company. "Similar to the way Fidelity helped bring Wall Street to Main Street through the direct sale of mutual funds, we believe that selling term life insurance direct to the consumer will demystify term insurance and simplify the purchase process for consumers."

Consumers are often underinsured because they simply lack basic knowledge about life insurance products and are uncomfortable with purchasing life insurance through traditional providers. "By making term life insurance available directly to consumers, Fidelity is able to make the buying process as simple as possible with the added benefits of no sales pressure, lower costs and educational assistance -- all with the familiarity, comfort and trust of one of the nation's largest financial institutions," said Dolan.

"Research shows that many Americans feel they need more life insurance, but many don't buy it either because they don't completely understand it or because they don't feel comfortable purchasing it through traditional life insurance sources," said Dolan. "As a result, we are confident that many of Fidelity's existing and prospective customers who look to us for non-pressured help on how to accumulate wealth will also welcome the information we provide to help them in purchasing life insurance."

Fidelity's new term insurance, currently available in 44 states, offers consumers a choice of five coverage periods, including 1-, 5-, 10-, 15- and 20-year term policies. Coverage amounts start at $250,000 and a spouse may apply for an additional policy of $100,000 or more. Each policy guarantees that the coverage and premium will remain level for a specific number of years. At the end of the term, customers can renew their insurance but the rates will be higher.

Fidelity's term life insurance program features a variety of payment options. Premiums can be paid by check, credit card or through automatic monthly deductions from a checking or Fidelity Ultra Service Account.

The new term insurance product can be purchased by calling 1-888-FID-TERM (343-8376) seven days-a-week. Fidelity's insurance specialists will provide consumers with the information they need to make their own best purchase decisions with no sales pressure. Consumers can also get information, fill out an interactive self-assessment worksheet, get a quote and start the application process through Fidelity's website at www.Fidelity.com .

Term life insurance is a relatively inexpensive way to protect an investor's financial future and it offers policyholders a wide choice of time horizons. With term life, you pay a set premium for a pre-determined number of years. In exchange, the insurance company will pay beneficiaries an income tax free benefit if the insured dies while the policy is in force. Term life insurance can help ensure that should the policyholder die, his/her family can replace lost income to pay current everyday expenses and fund future goals such as college or a spouse's retirement. Term life generally offers the easiest, lowest-cost way to purchase life insurance protection for a specified number of years.

Assets at Fidelity Investments Life Insurance Company have grown to more than $6.0 billion at year-end 1996 from $227 million in 1989. Currently, the company serves more than 115,000 customers nationwide. Fidelity Investments Life Insurance Company maintains a AA- rating from Standard & Poor's, reflecting the firm's position in the variable annuity market, operating performance, capitalization, liquidity and investment quality. A.M. Best, a leading insurance rating agency, has rated the company A for excellent. -0-

32536.001 Term insurance (policy form FTL-96200) is issued by Fidelity Investments Life Insurance Company. For NY residents, term insurance is issued by Empire Fidelity Investments Life Insurance Company, NY, NY. Term insurance is distributed by Fidelity Insurance Agency, Inc. and Fidelity Investment Insurance Agency of Texas, Inc.

Term insurance may not be available in all states.

CONTACT: Fidelity Investments

Cynthia Rizzo

563-5800