Fabric Life Insurance: High Potential, But A Pass For Now

The 60-Second Summary

0
3.5/5
GetSure Rating
Fabric has a 100% online quote and application process and solid TrustPilot reviews. However, their offerings are limited in terms of age and state availability. We would advise holding off from Fabric until the Company matures.
The Pros
The Cons

3rd-Party Fabric Life Insurance Reviews

Full Review Below.

Table of Contents
    Add a header to begin generating the table of contents

    Who Is Fabric?

    Founded in 2015 by Adam Erlebacher and Steven Surgnier and based in Brooklyn, New York, Fabric is an innovative new life insurance broker.

    Similar to competitors Bestow and Ethos, Fabric allows users to buy term life insurance 100% online.

    Fabric’s policies are issued by Vantis Life Insurance Company, a life insurance carrier that has been doing business since 1847.  Vantis is a subsidiary of Penn Mutual, the second-oldest mutual life insurance company in the U.S.

    Vantis has an A+ (Superior) rating from A.M. Best, a ratings agency that rates the financial stability of insurance carriers.

    Company 101
    Type
    Life Insurance Broker
    BBB Rating
    A+
    A.M. Best Rating
    A+
    Website
    Email
    support@meetfabric.com
    Phone
    (917) 765-3572
    Address
    20 Jay St, #438
    Brooklyn, NY 11201

    Finally, Fabric has strong third-party reviews.

    It holds an A+ rating from the Better Business Bureau.  And from customers, it currently has 1,698 reviews on TrustPilot, with an aggregate rating of 4.8 stars.

    Fabric’s phone number is (917) 765-3572 and its email address is support@meetfabric.com.

    Fabric Life Insurance Product Offerings

    Fabric offers two life insurance products:

    1. Term life insurance
    2. Accidental death insurance

    Like its InsurTech competitor Bestow, Fabric’s primary product is term life insurance.  It does not offer whole life insurance or guaranteed issue insurance.

    Summary Of Life Insurance Offerings
    Term Life?
    Yes
    Whole Life?
    No
    Guaranteed Issue?
    No
    Other Products?
    Accident insurance, wills and testaments
    Online?
    Yes, quote and application
    Medical Exam?
    Depends on applicant

    Fabric’s third and final offering allows users to create wills for free on the web or via mobile (both iOS and Android).

    Given that they’re targeting the new parent demographic, this product is a logical addition to their product suite.

    Term Life Insurance

    Fabric’s primary product (called Fabric Premium) is term life insurance and is available to residents of all states, except Montana, New York, and California.

    With Fabric, you can get coverage for $50K, all the way up to $5 million.  This is significantly higher than many of its peers (e.g., Bestow’s maximum coverage is $1.5 million).

    Does Fabric Require A Medical Exam?

    Fabric does not require a medical exam across the board.  But it waives the exam for only a select group.

    Individuals who can bypass Fabric's medical exam are typically young (20's or early 30's) and in pristine health. This means no medical conditions, no family history of medical conditions, and no history of smoking.

    Fabric calls this path “accelerated underwriting,” and this no-exam coverage is available on policies with up to $1 million in coverage.

    If you qualify for accelerated underwriting, it’s possible to complete the application in 10 minutes and receive instant coverage (a product Fabric calls Fabric Instant).

    Other Notable Features

    One unique feature of Fabric’s term life insurance product is that you can decrease your coverage amount at any time without going through underwriting.

    This is an excellent feature.  As policyholders grow older, they often need less life insurance coverage (because their kids are already in college, they’ve paid down their mortgage debt, etc.).  So with a Fabric policy, you can lower your coverage to meet your then-current needs and pay less in monthly premiums.

    (Note that there is no option to increase your policy’s coverage.  If you wanted more coverage, you would have to apply for a new policy and go through underwriting again.

    Finally, like nearly all term life insurance policies, you can  And since your term life insurance policy is underwritten by Vantis Life, you have the option to convert it to a whole life insurance policy during the term without having to retake a medical exam.

    Below 30? avoid fabric life insurance

    The one feature we’ve held off on discussing is term length and there’s quite a bit to say. 

    Fabric’s term life product comes in only three term-lengths: 10, 15, and 20 years.

    Unlike most insurers, Fabric does not sell policies with 25-year or 30-year terms. This may be unattractive to younger buyers.

    Why might younger buyers find this unappealing?

    Let’s say that, when 25 years old, you buy a term life policy from Fabric.  If you choose the longest term available (20 years), your coverage would expire when you are 45 years old.

    Coverage Should Match Financial Obligations (And Minimize Re-Underwriting Risk)

    And at this age, the breadwinner’s income is critical for most households.

    Many Americans may be working to pay off a home mortgage, while at the same time, preparing for college tuition payments for children children who are nearly college-age.

    Couldn’t this individual simply take out another term policy when the their Fabric policy expires?

    They absolutely can.  BUT, they would have to be medically underwritten again.

    And a lot can change in 20 years.  At ~45, they’re likely in worse health than they were at 25.

    At best, they are paying substantially higher monthly premiums on their new policy.  And much worse, they may not even be able to get approved for life insurance.

    This is a major risk and one that younger buyers would. be wise to avoid.

    Fabric Life Insurance Rates: The "How" & "How Much"

    How Fabric Estimates Your Price

    A term life insurance “rate” (or “quote”) is an estimate of the cost of your policy.

    To arrive at this estimate, Fabric asks for some basic information about you (5 quick data points):

    1. Age
    2. Gender
    3. State
    4. Whether you use tobacco or not
    5. Your rating of your overall health (excellent, good, or ok)

    Based on these factors, Fabric’s quote tool estimated your monthly cost based on an estimated rate class.

    The Five Main Rate Classes

    There are five main rate classes, shown below from lowest risk to highest risk:

    1. Ultra Select: Excellent health and family history, no tobacco use within 5 years, low-risk lifestyle.
    2. Select Plus: Very good health and family history, no tobacco use within 3 years, low-risk lifestyle.
    3. Select: Good health and family history, no tobacco use within 2 years, low-risk lifestyle.
    4. Standard: Acceptable health and family history, no tobacco use within 1 year, moderate-risk lifestyle.
    5. Tobacco User: Acceptable health and family history, tobacco use within a year, moderate-risk lifestyle.
      In some instances, we may be able to make an offer for coverage at a substandard rate class. Note that our quote tool does not show Standard or substandard rate classes.

    Sample Monthly Premiums

    Rates For Men

    In the table below, you’ll find monthly premiums quotes for a male living in California, with no history of smoking and in “Good” Health (the middle tier of the three user-reported health grades). 

    Rates are shown for 30-, 40-, and 50-year-old men looking for 10-year and 20-year policies, each at coverage amounts of $500K and $1 million.

    In the table below, you’ll find monthly premiums quotes for a male living in California, with no history of smoking and in “Good” Health (the middle tier of the three user-reported health grades). 

    Rates are shown for 30-, 40-, and 50-year-old men looking for 10-year and 20-year policies, each at coverage amounts of $500K and $1 million.

    Fabric Rates For Men

    Note: Rates sourced from https://meetfabric.com/term-life-insurance-quotes-rates on March 10, 2021 and shown for illustrative purposes only.

    Rates For Women

    The corresponding monthly premium rates for women are shown below.

    Fabric Rates for Women

    Note: Rates sourced from https://meetfabric.com/term-life-insurance-quotes-rates on March 10, 2021 and shown for illustrative purposes only.

    Conclusion

    While we put Fabric through the ringer in this review, but we don’t want any of our comments to overshadow the fact that Fabric is a rising star.

    With the exception of its competitors Bestow, Fabric is demonstrating more innovation than any other life insurance provider in the U.S.

    And that’s not hyperbole.

    Fabric has a strong web distribution and customer education platform.  Moreover, its mobile app experience is seamless and polished at a time when 95% of the industry lacks mobile distribution full stop.

    So while we recommend that you pass on Fabric for the time being (and opt for companies like Health IQ and Bestow), we’re excited to see Fabric’s potential materialize and we fully expect our recommendation to change within a couple of years.

    Sources

    Table of Contents
      Add a header to begin generating the table of contents