Fabric Life Insurance Review: AI Powered Affordable Life Insurance
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Term life insurance startup Fabric is one of many companies with a more efficient way to apply for life insurance. The company focuses on helping families and offers an easy application process. However, there aren’t as many choices in terms of policies compared to competitors and there are some applicants that might still need a medical exam.
That doesn’t mean it’s not worth looking into this startup. Keep reading for our review of life insurance through Fabric to see whether it’s the right fit for you.
Based in Brooklyn, New York, Fabric is a life insurance startup with an online application process without needing phone calls from brokers or agents. Founded in 2015, the company’s policies are issued by Vantis Life, established in 1847 and part of the Penn Mutual group of companies. A.M. Best (an insurance agency ratings organization) gave it an A+ (“Superior”) rating.
Term Life Insurance Through Fabric
Fabric sells term life insurance in 10, 15 or 20 year terms. You can apply for policies from $100,000 up to $5 million. Residents of most states are eligible to apply for a policy except for those in Montana and New York.
Since term life insurance policies sold by Fabric are medically underwritten, you could be subject to a medical exam before being approved. Plus, the cost of your coverage will depend on many factors including your lifestyle choices and health condition, as well as the size of your policy.
If you choose a policy that’s up to $1 million in coverage, you may be able to avoid the medical exam. First Fabric will determine whether you need one by assessing your insurable risk via their computer algorithms. If you aren’t given an instant offer, Fabric’s team of human medical underwriters will then review your application and decide if you need to complete a medical exam or need to submit additional information.
If after being approved (and purchasing your policy) you want to increase your current policy value, you can’t use your existing application. But if you want to decrease your coverage, then you don’t need to go through additional underwriting.
Although term life insurance doesn’t have a ton of exclusions to coverage, there are still a few. These include if you provide false or incomplete information (aka. your application is considered a misrepresentation) or if during the first two years of coverage you commit suicide.
Life Insurance Rates from Fabric
For term life insurance, rates depend on many factors including the length of the term, gender, age, health and policy face value. For example, a male Texan in excellent health (nonsmoker) who is 35 years old with a $250,000, 10-year policy might only pay as little as $17 a month, whereas a female with the same insurance policy would pay around $16.
In general, the healthier and younger you are, the lower your monthly premiums will be.
Here are some sample rates for Fabric’s term life offering on 20-year policies:
- $14.61 per month: 29-year-old female in excellent health with $250,000 in coverage
- $34.17 per month: 35-year-old male in excellent health with $750,000 in coverage
- $41.61 per month: 41-year-old female in excellent health with $500,000 in coverage
In terms of payment, Fabric lets you pay with a credit or debit card for your policy. This can be great news for those who want to earn cashback or points on your rewards credit card. Keep in mind you’ll need to keep on top of your payment information or else your policy could lapse.
The good news is that, like all term life insurance policies, the ones offered by Fabric provide a 30-day grace period. A grace period gives you an additional amount of time to make up a missed payment before coverage lapses. If the payment isn’t made during the grace period, coverage will lapse.
Is Fabric For You?
Fabric insurance reviews from customers have been highly rated so far when it comes to responsiveness from customer service. Plus, Vantis Life, which underwrites Fabric’s policies, is highly rated by A.M. Best, meaning that you can feel safe knowing that your policy will be paid out to your beneficiaries if applicable. We also like that you can complete the application process online within minutes.
One of the downsides is that you may be required to undergo a medical exam and you may need to purchase another policy elsewhere if you decide you want to increase the face value amount. That being said, this is typical of many other life insurance companies. If that’s not a major deterrent for you, you can check Fabric out to see how their policy premiums compare to other competitors.