Is Fabric Life Insurance Legit? A Comprehensive Review
Life insurance is one of the most important financial decisions you can make for your family.
It can provide peace of mind, security, and protection in case of unexpected death or disability.
But with so many options and providers available, how do you choose the best one for your needs?
One of the newer players in the life insurance market is Fabric, a company that offers simple and affordable term life insurance online.
Fabric claims to make life insurance easy, fast, and accessible for busy parents.
But is Fabric life insurance legit? How does it compare to other providers? And what are the pros and cons of choosing Fabric for your life insurance needs?
In this article, we will answer these questions and more.
We will review Fabric’s features, benefits, costs, customer reviews, and ratings.
We will also look at some of the alternatives and competitors to Fabric, and give you some tips on how to find the best life insurance policy for your family.
What is Fabric Life Insurance?
Fabric is a life insurance company that was founded in 2015 by Adam Erlebacher and Steven Surgnier, two former executives of Simple, an online banking service.
Fabric’s mission is to help families achieve long-term financial security by providing simple and affordable term life insurance online.
It offers term life insurance policies with coverage amounts ranging from $100,000 to $5,000,000, and policy terms of 10, 15, or 20 years.
Fabric’s policies are issued by Vantis Life, a subsidiary of Penn Mutual, one of the oldest and most reputable life insurance companies in the US.
Fabric’s application process is fully online and can be completed in less than 10 minutes.
It uses an algorithm to assess your eligibility and risk profile, and in most cases, you can get an instant decision without a medical exam.
However, some applicants may be required to undergo a phone interview or a physical exam to verify their health information.
Fabric also offers a free will service and a family financial dashboard, where you can:
- create and share a legal will
- nominate a guardian for your children
- access your family’s financial accounts and documents in one place
Fabric’s will service and dashboard are available to anyone, regardless of whether they have a Fabric life insurance policy or not.
What are the Benefits of Fabric Life Insurance?
Fabric life insurance has several benefits that make it an attractive option for many families.
Some of the benefits are:
- It is Affordable: Fabric’s premiums are competitive and affordable, especially for younger and healthier applicants. For example, a 30-year-old non-smoker male can get a $500,000 policy for 20 years for as low as $21.67 per month.
- It is Simple: Fabric’s application process is simple and straightforward and can be done entirely online. Fabric’s website and app are user-friendly and easy to navigate, and Fabric’s customer service is responsive and helpful.
- Flexible: Fabric’s policies are flexible and customizable, allowing you to choose the coverage amount and policy term that suit your needs and budget. You can also adjust your coverage amount or cancel your policy at any time without any fees or penalties.
- It is Reliable: Fabric’s policies are backed by Vantis Life, a reputable and financially stable life insurance company that has an A+ rating from A.M. Best, a leading rating agency for the insurance industry. Vantis Life has been in business since 1942 and has paid out over $1 billion in claims.
- It is Comprehensive: Fabric’s policies provide comprehensive coverage for death due to any cause, except suicide within the first two years of the policy. Fabric’s policies also include an accelerated death benefit, which allows you to access up to 50% of your policy’s face value if you are diagnosed with a terminal illness with less than 12 months to live.
What are the Drawbacks of Fabric Life Insurance?
Fabric life insurance also has some drawbacks that may make it less suitable for some families.
Some of the drawbacks are:
- It is Limited: Fabric only offers term life insurance, which is a type of life insurance that provides coverage for a fixed period of time, usually 10, 15, or 20 years. Term life insurance does not have any cash value or investment component, and it expires at the end of the term. If you outlive your policy term, you will not receive any benefits or refunds from your policy.
- It is Restrictive: Fabric has some restrictions and exclusions that may affect your eligibility and coverage. For example, Fabric does not offer life insurance to residents of Montana, New York, or Puerto Rico. Fabric also does not cover death due to acts of war, illegal activities, or hazardous hobbies, such as skydiving, scuba diving, or racing.
- Inconsistent: Fabric’s underwriting process is not consistent and may vary depending on your personal and health information. Some applicants may be approved instantly without a medical exam, while others may be asked to provide additional information or undergo a phone interview or a physical exam. Fabric does not disclose the criteria or factors that determine the underwriting outcome, which may make it difficult to predict or compare your chances of approval or your premium rates.
How Does Fabric Life Insurance Compare to Other Providers?
Fabric life insurance is not the only option available for families looking for term life insurance online.
There are many other providers that offer similar or different features, benefits, costs, and customer experiences.
Some of the popular alternatives and competitors to Fabric are:
Bestow
Bestow is another online life insurance company that offers term life insurance policies with coverage amounts ranging from $50,000 to $1.5 million, and policy terms of 10 or 20 years.
Its application process is also fully online and can be completed in minutes, without a medical exam.
Bestow’s policies are issued by North American Company for Life and Health Insurance, which has an A+ rating from A.M. Best.
Haven Life
Haven Life is an online life insurance agency that offers term life insurance policies with coverage amounts ranging from $100,000 to $3 million, and policy terms of 10, 15, 20, or 30 years.
Its application process is mostly online, but some applicants may need a medical exam to finalize their coverage.
Haven Life’s policies are issued by MassMutual, which has an A++ rating from A.M. Best.
Ladder
Ladder is an online life insurance company that offers term life insurance policies with:
- coverage amounts ranging from $100,000 to $8 million
- policy terms of 10, 15, 20, 25, or 30 years
Its application process is also mostly online, but some applicants may need a medical exam to confirm their eligibility.
Ladder’s policies are issued by Fidelity Security Life Insurance Company, which has an A rating from A.M. Best.
Conclusion
Fabric life insurance is a legit and reliable option for families looking for simple and affordable term life insurance online.
Fabric offers competitive and flexible policies, backed by a reputable and financially stable insurer.
It also provides a free-will service and a family financial dashboard.
This can help you plan and manage your family’s financial future.
READ ALSO: Is Pacific Specialty Insurance Legit?: Complete Guide
Diana: An accomplished insurance expert
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Diana is an accomplished insurance professional, holding a Bachelor of Science in Business Administration (Risk Management and Insurance) from the University of Central Missouri.
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