Summary: Insurance from Fabric offers simple and affordable term life insurance policies for young families. In addition, this company offers accidental death policies. As a bonus, Fabric also offers free will and last testaments plus 529 College Savings Plans and a high-yield savings account.
The application process is designed to be completed entirely online in 10 minutes with immediate approval for qualified applicants.
Young families and individuals
Adults over age of 60
Pros of Insurance from Fabric
✔ Easy Online Application Process
✔ Free Wills & Financial Tools
✔ Term policy can be converted to whole life
✔ Accidental Death Coverage
✔ Grace Period if you miss a payment
✔ Immediate approval for qualified applicants
✔ 1% of death benefit donated to a charity
✔ 30 Day Money Back Guarantee
✔ iOS and Android app
Cons of Insurance from Fabric
X No Coverage for anyone over 60
X No customer service number (although they offer a live chat)
Policies are available for 10, 15 or 20, 35, or 30 years, with coverage from $100,000 to $5 million, with increments of $50,000 up to $500,000. Then increments of $100,000 thereafter.
However, in some states only a 20 year term policy is available.
I’ve never heard of this company before, how do I know they’re legit?
Fabric’s policies are issued by Vantis Life, which is wholly owned by Penn Mutual company. Penn Mutual is the second-oldest mutual life insurance company in America.
Penn Mutual has an A+ rating (“Superior”) issued byA.M Best Company, an independent analyst of the insurance industry. This should give you confidence that Fabric’s policy issuers are capable of paying any policyholder’s claims.
Easy Online Application Process
Fabric’s application is designed to be completed entirely online. Depending on the applicant, one may need to answer an e-mail from an underwriter or take a physical exam.
I sought out estimates for 3 big name online insurers for $1M, 32M, Non Smoker Policy and their estimates were roughly the same. That said, the final quote may end up being different once you complete the entire application.
Monthly Estimated Price
Accidental Death Coverage
Fabric also offers insurance coverage for death as a result of an accident. The price for this policy is the same for everyone, regardless of health. However, pricing may vary by state.
$6 per month for $100,000 in coverage
$15 per month for $250,000 in coverage
$30 per month for $500,000 in coverage
Accidental death coverage automatically terminates at age 60. Coverage is not offered to ages 50 and above.
The Bottom Line
With a seemingly endless amount of insurance start-ups appearing, there’s no lack of options. That said, Fabric life insurance prices are comparable to other online insurers. Still, the convenience of setting up life insurance, a will, a 529 plan, and a high yield savings account all with the same company can make managing your finances a little more seamless.
However, there’s no option to adjust your policy amount as you can do with insurance from Ladder, nor the option to talk to a live agent, which are dings in my book.
Founder and author of realworldpersonalfinance.com [RWPF]. A blog dedicated to personal finance for millennials that want its readers to know they can be perfectly imperfect. Over the past 10 years, his net worth went from -$108,000 to $380,000, mainly through debt reduction, living below his means, and navigating the corporate world. There have been mistakes along the way, and he is still learning too. He's here to offer honest opinions and real insight that's based on his own personal experiences. Current Recommendations:1)Save Major Money By Switching Your Cell Phone Service To Mint Mobile Mint Mobile plans start at $15 a month. I have the unlimited data plan for $30 a month. Major savings compared to any bigbox carrer! 2)Have The Flexibility To Amend Your Life Insurance With Ladder What makes Ladder so special is the ability to increase or decrease your coverage as needed. They call this “Laddering,” and they’re the only ones in the insurance space offering a feature like this. If your circumstances are likely to change, for example, buy a house or start a family, then having the flexibility to amend your policy is a huge plus 3)Become Your Family's COO with Trustworthy Trustworthy makes it easy to organize important family information that’s easily accessible so you and your loved ones can be prepared for whatever may happen. Plus, all your information is protected at all times with bank-level 256-bit encryption.