Fabric: Life Insurance, Online Wills, and Family Finance Tools

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Fabric Life Insurance
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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.

Good For:

  • Young families and individuals

Bad For:

  • 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)

X Not available in New York or Montana

Types of Coverage

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 by A.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.

Price Comparison

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.

CompanyMonthly Estimated Price
Fabric$44.65
Ladder$41.89
Bestow$45.17

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.

Cheers,

Adam
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