Fabric Life Insurance is a relatively new entrant to the market.
Founded in 2017, the firm’s innovative approach to family finance made waves and gained popularity.
The brainchild of Adam Erlebacher, Fabric simplifies the process of obtaining life insurance.
Using smart technology, the firm cuts the approval time for accidental death policies to minutes.
This makes for a significant improvement on the traditional four to eight-week wait.
With a simple application process, waiver of medical exams in some cases, and almost instantaneous cover, Fabric Life Insurance is uniquely suited for busy parents.
In this review:
About Fabric Life Insurance
Fabric Life falls under the umbrella of Vantis Life, a company rated A by A.M. Best.
Vantis Life is a subsidiary of Penn Mutual, one of the strongest life insurance companies in America today.
Penn Mutual receives top ratings from all the rating agencies. Vantis Life also has an A+ rating from the Better Business Bureau.
Fabric Life shines in the customer service arena. Trustpilot gives it a 4.8 rating, with 97% of consumers scoring the company a 4 or 5.
Fabric Life Insurance Products Offered
Fabric Life Insurance keeps things simple by offering:
- Term Life Insurance
- Accidental Death Coverage
Fabric Premium: Term Life Insurance Coverage
Term life insurance is set for 10, 15, or 20 years, depending on the state. You may select coverage starting at $100,000 to a maximum of $5,000,000.
The application process is a little longer, as you must complete a health questionnaire.
The company may waive the medical examination and opt to charge you standard health rates based on your answers.
For policies under $1,000,000, a medical exam is seldom required.
The company may, however, request that you undergo a physical as part of the application process.
They will let you know if you need one during the underwriting stage.
The term life policies take a little longer to approve because of the underwriting process.
The typical application may take up to four weeks to finalize.
One area that Fabric could improve upon is the limited flexibility of the policy’s face value. Should you wish to increase the value later, you have to reapply.
You may, however, decrease the value at any stage.
While Fabric currently only offers term life policies, Vantis Life provides whole life insurance as well.
You may, therefore, convert your policy at a later stage, subject to certain limitations.
As is standard with many insurers, the company declines claims if:
- You commit suicide within twenty-four months of taking the policy.
- You fail to mention pre-existing conditions or incorrectly complete the application to reduce your premium.
Fabric Instant: Accidental Death Insurance
Fabric Instant is the product that had the insurance world in an uproar.
The smart algorithm that the company uses allows eligible applicants to receive instantaneous coverage.
Instead of setting a specific term initially, you continue to pay your premiums until the age of 60.
At that stage, the coverage falls away, and the payments stop.
The difference between this policy and that of a whole life plan is that you’re only covered if you die in an accident.
For a younger person in good health, selecting this option is useful in reducing premiums.
It is, however, wise to check how Fabric Life Insurance and your state defines “accidental death.”
If you die in a car accident, for example, it’s a claimable event.
What happens, however, if you die during a riot or a random shooting incident?
This is a guaranteed acceptance policy, so there’s no need for a medical examination. As the policy only pays out in the event of an accident, your health doesn’t matter as much.
If, however, you have a condition such as epilepsy that might make you more accident-prone, they may raise your premiums. It’s tempting to lie about pre-existing medical conditions, but this will void your coverage.
Insurers may decline any claims on the basis that you provided false information when applying. The claims adjusters are very thorough when investigating whether or not a claim is legitimate.
Life Insurance Riders Offered
Fabric provides two basic riders free of charge:
- Accelerated Death Benefit: Should you be diagnosed with a terminal illness, you may access a portion of the death benefit.
- Charitable Giving Rider: Upon your death, Vantis Life pays the equivalent of 1% of your death benefit to the charity you nominated when applying. This money comes from Vantis directly and not out of your policy benefits.
Fabric Life Insurance Pros and Cons
- Simple application
- Approval takes minutes rather than weeks
- On payout, the company matches 1% of the death benefit and donates it to charity
- A medical exam isn’t always required
- The company provides free wills and other financial tools for families
- No whole life coverage
- Not available nationwide
- Not ideal for older parents
Fabric Life Insurance Eligibility and Application Process
You must be aged 18 to 60 to apply for a policy.
The application process is simple, and you may complete it through the mobile app or on the Fabric Life Insurance website.
The advantage of using the app is that it allows you to:
- Draw up your will
- Sync your finances, including your 401(K) and savings accounts, with your partner
- Open a college savings plan or standard savings account
When Applying Online
Click the “Get Started” button at the top right-hand side of the screen.
From there, answer the questions as they come up. The initial round of questions is to find out whether you have:
- A partner
- Children under the age of 18
- Life insurance through work or held privately
- A will
You don’t enter any personal details at this stage. Once complete, the system suggests products in which you might be interested. Simply click “Next” to continue.
Now enter the amount of coverage you require. According to Fabric Life Insurance, firms recommend five times your annual salary.
On the next screen, select your state and then your age. Then, you’ll go through the basic risk and health questionnaire.
Fabric will narrow down your options based on your age, health, and state in which you reside.
Select the most appealing option for you, and then click “Next.” It’s only at this stage that you enter identifying criteria such as your name and contact details.
Is Fabric Life Insurance Best For You?
Most insurers ask for your contact details upfront so that they can follow up with you if you don’t complete the transaction.
Fabric relies on the strength of its policies instead and doesn’t pressure you into accepting.
The time it takes to approve depends on the policy. If you applied for an accidental death plan, you should be covered immediately.
A term life policy takes a little longer, especially if you opt to undergo a medical exam.
Does it sound crazy to want to have a physical? When you’re extremely busy, it might seem burdensome.
It may, however, be a smart move if you’re in good to excellent health.
By proving to the company that you’re in top shape, you verify that you’re less of a risk and they may offer better premiums.
Overall, Fabric is a quality life insurance company that is a great resource for those who need a short term policy that are younger and needs quick coverage.