Fabric Life Insurance Review
As parents, we have plenty to think about when it comes to our children and family. From taking care of our kids’ basic needs to making decisions about their childcare and education. The list of decisions can seem endless sometimes.
Which leads me to another decision all of us parents need to make: how to protect our children by setting up proper wills and life insurance.
Admittedly, this is a heavy topic that no one wants to think about — especially when you’re knee-deep in dirty diapers and cleaning up toys everywhere. But the reality is, leaving decisions about our children’s well-being, money, and property to the courts is a disaster waiting to happen.
But as hard as these topics are for parents to tackle, there are companies out there trying to make the task a tad bit easier. One of the companies that have come along to make this happen is Fabric Insurance. What is Fabric Insurance? And can it really help parents tackle these hard tasks like wills and life insurance? Our Fabric life insurance review looks for the answer to this question and more.
- What is Fabric life insurance?
- The bottom line
What is Fabric life insurance?
Fabric is an online-only insurer, founded in 2017. Fabric offers term life insurance and accidental death insurance policies. In addition to the insurance products, Fabric also helps you create a will.
As a startup, Fabric was built on the premise of being a one-stop shop for parents. Since parents are busy chasing toddlers or fighting with teenagers, Fabric is there to make sure you get your most important tasks taken care of in a timely manner.
Fabric is an insurance provider all about making parent's financial lives a little bit easier by providing affordable life insurance coverage.
Although a new insurance agency, Fabric is backed by some pretty big names in the insurance industry. Vantis Life Insurance Company, which is part of Penn Mutual, is responsible for backing all policies through Fabric. Vantis Life has a strong financial rating and stable outlook, with an A+ A.M. Best rating.
Fabric has a high A+ rating with the BBB, highlighting its impressive customer service record and accreditation. So while Fabric may be considered one of the newer kids on the block, Fabric is laying the foundation to become a big part of the online insurance community.
How does Fabric work?
As mentioned, Fabric offers three major products: term life, accidental death insurance, and a free will writing service. Each product works a little differently as far as coverage options and the application process.
Term life insurance
When you’re ready to start the process of getting a quote from Fabric, you simply go to the site and begin a simple questionnaire. One of Fabric’s goals is to make the process as quick and painless as possible — and this starts with the questions.
For term life insurance, the information requested will be pretty straightforward. You’ll have to disclose basic health info, and where you’re located. Fabric offers term life insurance in every state, except Montana, California, and New York.
You and your spouse or partner can choose several different options for your policy. Fabric offers term life insurance with a death benefit of $100,000 to $5,000,000. You choose your term length, from 10-, 15-, or 20-year term life insurance.
The underwriting process
Once you answer a few personal and medical questions, there will be a quick determination of whether you are accepted right away for a policy. If you’re not, then Fabric requests additional information from you.
If needed, you could be required to submit medical documents, answer follow-up questions, and possibly go through a medical exam. If you do need a health exam, a representative is sent to your house at no-charge, a blood test is taken and you’re asked additional questions.
Most of the time, the underwriting process is complete within 7 to 10 days. If you’re accepted, you’ll be given a final quote for your monthly premium based on the details gathered, at the best rates.
Accidental death insurance
The process for obtaining accidental death insurance through Fabric is much simpler. Fabric offers accidental death coverage for anyone ages 25-50. Death from accidents such as car, bike, or airplane crashes are covered, for example.
The accidental death insurance is widely accepted (including D.C), but Colorado, Massachusetts, Montana, New York, North Dakota, Pennsylvania, Virginia, and Washington are excluded from being able to purchase.
Not sure if you need accidental death insurance? It might surprise you to learn that according to the CDC, accidental death poses the greatest risk of death if you’re between the ages of 25 to 44.
This type of insurance is not very expensive and you can be covered within minutes. You do not have to obtain a medical exam to be approved. Since accidental death insurance is so inexpensive, many people choose to tack it on to their term life policies.
Creating your will
Another service from Fabric aimed at helping out busy parents is offering a free will writing tool.
To get started, you fill out a series of questions. You write out your final wishes for your arrangements, guardians, beneficiaries, and other important details you’d like covered. Fabric then provides you with the information needed to make it legally binding. Fabric even provides you with conversation starters you can use with your loved ones to talk about your final wishes.
How much does Fabric cost?
The life insurance rates are different for term life versus accidental death insurance. Let’s take a look at how the costs are calculated.
How term life costs are calculated
Term life insurance pricing depends on several factors. Your age, tobacco usage, location, medical health and family history, and length of term all impact how much you’ll pay.
Term life insurance policies are typically very affordable. Since there is a predetermined “end” for the insurance company, the risk is lower for them, which in turn lowers your premium.
Fabric, like other life insurance companies, uses a classification system to determine what health category you fall under. Depending on which level you fall in will determine the amount you pay. The guidelines Fabric uses are listed below and are taken straight from Fabric’s information page:
- Ultra Select: Excellent health and family history, no tobacco use within 5 years, low-risk lifestyle.
- Select Plus: Very good health and family history, no tobacco use within 3 years, low-risk lifestyle.
- Select: Good health and family history, no tobacco use within 2 years, low-risk lifestyle.
- Standard: Acceptable health and family history, no tobacco use within 1 year, moderate-risk lifestyle.
- Tobacco User: Acceptable health and family history, tobacco use within a year, moderate-risk lifestyle.
Examples of premium costs
Generally speaking, term life is affordably priced. But we know you like to see numbers. Here are examples of average rates with Fabric for males and females, age 30, non-tobacco users with excellent health in North Carolina.
|Male coverage||10-year term||15-year term||20-year term|
|Female coverage||10-year term||15-year term||20-year term|
And here is my estimate, based on a female living in North Carolina, as a non-tobacco user. This is for a $500,000 and 15-year term:
Accidental death pricing:
Accidental death insurance is very affordable, some policies are as little as $6 per month. This is referred to as Fabric Instant, because you’ll be accepted without a medical exam.
Fabric offers the same pricing to everyone, although there are some variations by state. The flat pricing for accidental death is generally:
- $6 per month for $100,000 in coverage
- $15 per month for $250,000 in coverage
- $30 per month for $500,000 in coverage
Cost of creating a will
Creating a will is free through Fabric. You may incur additional costs as you go through the process of making your will legally binding.
Fabric is unique because of the additional features it offers, and again, these are tailored to fit the needs of busy parents.
Free will writing tool
Fabric gives you the tool you need to write out your final wishes and arrangements. You can use this tool to express what you want for your beneficiaries, guardians, and loved ones. Fabric will then guide you on how to make your will legally binding.
The Fabric app
Fabric provides you digital access to an app that you can share with whoever you want. This app puts everything at your fingertips. You can apply for term life, name your kid’s guardians, add in important financial details your family needs to know about. You can set up a 529 plan to save for your children’s education or a high-interest savings account.
Term life policy converts
If you’d like to convert your term life insurance policy to whole life insurance, you have the conversion option before age 65. The best part is, you aren’t subject to another medical examination, although a separate application is required.
Tackle several financial tasks at once
If you’ve been putting off purchasing term life and accidental death insurance, and/or creating your will, then Fabric can help you get it all done.
Who is Fabric best for?
Fabric is ideal for busy parents who want to simplify their important financial tasks. But truthfully, anyone pressed for time or who wants to find life insurance quotes and a simple insurance purchase process could benefit from Fabric.
Anyone who needs accidental death insurance
Fabric provides accidental death insurance to anyone who applies, even without a medical exam.
Who shouldn’t use Fabric?
If you need a 30-year term
Fabric only offers term life insurance terms for 10, 15, or 20 years. So if you need something longer, or shorter, then you might have to consider other options.
Those with extensive medical issues
If you’ve had extensive medical issues, it’s likely you qualify for coverage (although you should verify this for yourself).
Those older than 60
The cap on the age for application is 60, so you won’t be able to apply at Fabric if you’re 60 or older.
Those who need customization
With Fabric, one of the ways to reduce the amount of time it takes to get coverage is to reduce the number of offerings. This also means you won’t be able to customize your policies, other than the pre-selected terms and coverage amounts. It also means you won’t be able to add on any custom language or benefits (these are referred to as riders in the insurance world).
Pros and cons
Fabric offers many advantages for those who need to purchase accidental death, term life insurance, or who need help getting started on their wills.
- Fast quote process
- Possible coverage without a medical exam
- Competitive rates
- Access to unique features, such as the digital vault
- Get your term life and accidental death policies in one place
- You pay with a credit or debit card
- Large benefit range of $100,000 to $5,000,000
- Subject to a medical exam if you’re not instantly approved
- You’re only receiving one quote and it’s based on Vantis Life Company
- No 30-year term
- Can’t apply if you’re 60 years or older
- No other customizations (or riders)
Fabric versus competitors
Fabric isn’t the first online-only insurance company to hit the internet. But how does it compare to other companies offering similar products?
Here’s a look at how these three companies compare side by side:
|Terms||10-,15-, 20-year||10-, 20-year||10-,15-, 20-, 30-year|
|Death benefit||$100,000 to $5 million||$50,000 to $1 million||$100,000 to $1.5 million|
|Products||Term life, accidental death, will-writing||Term life||Term and whole life|
Cost for 20-year term $500k, healthy male in 30s
Bestow and Fabric are both new on the insurance scene. Bestow was founded in 2016 as an online marketplace for term life insurance. Although both companies offer term life insurance, they have some pretty remarkable differences.
For starters, Bestow only offers term life insurance. You can not purchase accidental death coverage through Bestow, nor is there any tool offered to help you create a will. Secondly, Bestow offers term life insurance in either 10- or 20-year terms. The policies can range in benefit from $50,000 up to $1,000,000.
One of the biggest advantages of Bestow, especially compared to Fabric, is the application process. You do not need a medical exam for acceptance. The underwriting is powered by artificial intelligence technology, which allows the company to make almost-instant decisions regarding coverage.
Ethos Life Insurance
Ethos is similar to Bestow and Fabric because it is an online-only company offering insurance products. Ethos, however, offers both term life and whole life policies.
Ethos accepts applications from people ages 20-65, which is a wider age range compared to Fabric or Bestow. Ethos does not currently offer term life insurance for residents of New York, but all other locations are available, including Washington D.C.
Ethos offers a little more policy customization too. You can purchase anywhere from $100,000 to $1,500,000 in benefits, and choose from a 10-,15-, 20-, or 30-year term.
How much term life insurance do I need?
How much of a death benefit you need is something only you and your partner or spouse can determine. Keep in mind you’ll want expenses such as a mortgage, debts, and annual income covered for a few years if something were to happen. Another easy rule of thumb to remember is an amount of 5x your income.
What is Fabric Instant or Fabric Premium?
As you’re researching Fabric, you may notice a reference to Fabric Instant or Fabric Premium. Fabric Instant refers to the accidental death insurance policies. Fabric Premium refers to the term life insurance policies.
Will Fabric pull my credit score to determine if I can get coverage?
Fabric will perform a soft pull (which has little impact on your score) for your credit profile, but your score will not be factored into Fabric’s decision. Instead, the underwriters are looking for information on your financial history such as bankruptcies, late payments, and other data points related to payment history.
Do I have to take a medical exam?
The answer is, it depends. Some applicants qualify immediately, without additional medical exams. This is likely for people in excellent health or within a certain age. If it’s determined you need a medical exam, Fabric schedules someone to come to your house to ask you a series of additional questions. This adds about 7-10 days to the process, so keep this in mind as you’re finalizing your policy details.
How do I know Fabric will pay out the benefits?
Fabric is a young company, but it is backed by highly rated, financially stable companies. As long as you’re maintaining payment on your premiums, you can be confident your policy is financially backed.
Does Fabric pay the policy if a suicide occurs?
For term life insurance policyholders, a death benefit will not be paid out if a suicide from the policyholder occurs within the first two years of the policy. This is typical among many term life insurance carriers.
The bottom line
Fabric is designed to take part in the financial burdens off a parent’s plate. We all know having adequate life insurance and a last will and testament are important when you have kids, but finding the time is the hard part.
Overall, Fabric is a great option for those who want to go through a quick, online-only process for quotes and coverage. Even if you have to go through a medical exam, Fabric tries to make the process as painless as possible. And for parents, anything that doesn’t take up a lot of precious time and use extra brain cells is a major bonus.
Exclusive promotions, rewards and insights on the journey to financial freedom. Earn & save more today.