Life Insurance

Fabric Life Insurance Review: Great Service with Competitive Rates but Limited Options for Term Coverage

Editor's Rating

Quick-and-easy accidental death insurance and term life insurance but lacking coverage options and the best rates for some policies.

Good for

  • Ten-year term life insurance rates
  • Easy-to-use online application and policy management
  • Quick and professional customer service

Bad for

  • People over 50
  • Coverage over 20 years
  • Rates for policies with larger death benefits
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Editor's Rating

Quick-and-easy accidental death insurance and term life insurance but lacking coverage options and the best rates for some policies.

Good for

  • Ten-year term life insurance rates
  • Easy-to-use online application and policy management
  • Quick and professional customer service

Bad for

  • People over 50
  • Coverage over 20 years
  • Rates for policies with larger death benefits
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Fabric insurance is a start-up life insurance agency that offers both term life insurance policies and accidental death insurance. Fabric is online-first, but it has a customer service team of agents who receive outstanding reviews for their prompt and professional advice. Fabric's core product, called Premium, is term life insurance. The policies have competitive rates compared to those of other online life insurance providers.

Additionally, Fabric offers accidental death insurance through its Instant product. However, Instant is only available if you're between 25 and 50 years old, and it cannot be purchased if you live in Colorado, Massachusetts, Montana, North Dakota, Pennsylvania, Virginia or Washington.

Fabric term life insurance

Fabric's term life insurance is called Fabric Premium and is available with a term length of 10, 15 or 20 years. Face values are available for policies with a minimum of $100,000 and a maximum of $5 million, in increments of $50,000. Term policies can be purchased in nearly every state except Montana — although in New York and California, you would need to purchase Fabric's accidental death coverage before term would become available.

The term life insurance policy will most likely need to be medically underwritten, so the cost of coverage will directly depend on your health and lifestyle choices. However, during the application process, depending on the policy size and answers to some of your health questions, you may be able to receive accelerated underwriting. Specifically, for policies with up to $1 million in coverage, you may be able to receive no exam coverage. Fabric first determines this by using computer algorithms to assess your insurable risk. Then, a team of human underwriters will examine the application to decide if you can forego an exam.

Unfortunately, if you want to increase your current policy face value, there's currently no option. Instead you would need to purchase a new policy and undergo the application process again. However, you do have the ability to decrease your coverage at any point without the need to go through underwriting. 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.

Premium term life insurance has very few exclusions to its coverage. The only scenarios in which your beneficiaries wouldn't be paid, assuming you die during the policy term, are:

  • If you commit suicide during the first two years of coverage
  • If any of the information in your application was a misrepresentation, meaning false or incomplete

Cost of Fabric term life insurance

Fabric's term life insurance rates are slightly more expensive for larger face values when compared with other online competitors, such as Ladder Life and Haven Life. However, for a small face-value policy, Fabric does offer some of the lowest rates among online insurers. But, Fabric does not offer as extensive policy term lengths compared to these other life insurance companies. For example, if you need a policy with a term longer than 20 years, then we would suggest going with Ladder or Haven Life, who both offer 30-year term life insurance.

Fabric term life insurance quotes as compared to those from other online life insurance companies

Fabric Instant: accidental death insurance

Fabric Instant is an accidental death insurance policy that is only available if you're between the ages of 25 and 50. There's no term of coverage and the policy is simply renewed monthly, so long as you continue to pay premiums, and can extend until you reach the age of 60. An accidental death insurance policy is similar to a life insurance policy, but it only pays a death benefit if you die during the period of coverage due to an accident, such as being hit by a car. Whether Fabric insurance considers a death accidental varies depending on the state you live in, so you should be familiar with the policy's restrictions before purchasing one.

Fabric doesn't require a medical exam in order to purchase its accidental death insurance. You simply need to complete an online form, which can be done in a matter of minutes, and your acceptance is guaranteed. Guaranteed acceptance is common for accidental death policies, since your likelihood of dying in an accident is less impacted by your health. To apply and get coverage, you'll need to provide:

  • Your cell phone number
  • Your Social Security number and date of birth
  • Your payment information, such as a credit card number and address
  • Your beneficiary's name and information

Since coverage is guaranteed and acceptance is instant once you've completed Fabric's online form, the accidental death insurance policy goes into effect immediately. Therefore, you could die in an accident that day and your beneficiary would receive the entire policy death benefit.

All accidental death policies are inexpensive as compared to life insurance, since most people pass away due to health reasons, but Fabric's rates for coverage are quite competitive with other policies:

Policy sizeMonthly cost (Oklahoma and New Jersey)Monthly cost (all other states)
$100,000$6.50$6.00
$250,000$16.25$15.00
$500,000$32.50$30.00

The primary downside to Fabric's accidental death insurance policy is that it does not offer coverage for dismemberment or paralysis, as many AD&D insurance policies will. So, if you lost a hand or the ability to walk, Fabric insurance wouldn’t provide a payout. Only if you pass away in an accident, a scenario which accounts for a very low proportion of deaths overall, would your beneficiaries receive anything.

What is not covered by Fabric Instant?

Fabric's accidental death insurance policy is typical in that it won't cover death due to health issues, disease, old age, suicide or intentional injury, as these would not be considered accidents. However, the Fabric Instant policy also contains other exclusions, the set of which changes by state. Depending on where you live, a claim may be denied if you die or receive an injury that leads to your death:

  • Before you purchased coverage
  • While committing a crime or incarcerated
  • While voluntarily participating in a riot (but attempting to stop a riot, restore law as a policeman or fireman or protect your property is covered)
  • While participating in any military-related activities, including maneuvers and training exercises, or while deployed
  • While participating in professional sports or any sort of racing (on land, air or sea)
  • Due to an act of war, whether or not it is declared
  • While participating in aeronautics or the use of an aeronautic craft, except as a fare-paying passenger on a commercial flight
  • While participating in extreme sports, which can include a wide variety of activities, such as jet skiing, ballooning, skydiving, scuba diving, spelunking and bungee jumping
  • While riding, using or being hit by a motorized vehicle that isn't designed for use on public roads, such as an ATV
  • While under the influence of alcohol, illegal substances or a controlled substance, unless its use was on the advice of a physician and it was taken as prescribed

Fabric life insurance reviews and ratings

Fabric is a new company, launched in 2017 in New York by co-founders Adam Erlebacher and Steven Surgnier, but it has already received outstanding reviews praising its simple application process and affordable coverage. The company's online application and portal is very straightforward with explanations of all terms and reasoning for questions. But the company's customer service team receives positive reviews as well, as it responds promptly to any questions you may have along the way.

It's also important to note that Vantis Life insurance received notable financial strength ratings (the company got an A+ from A.M. Best) and few complaints with regard to its customer service (it has an NAIC complaint index of 0). Since your Fabric policy would be underwritten by Vantis Life and your beneficiaries will directly interact with the insurer if they need to file a claim, you should feel confident that the company insuring you offers a positive customer experience.

Fabric insurance payments

Unlike many life insurance companies, Fabric accepts payment via debit or credit card. Your payment information can be managed by logging into its website, and the company simply charges you monthly. Should you miss a premium payment, Fabric provides a 30-day grace period during which your policy will remain in force. However, if your payment information isn't updated and your balance paid during that period, your policy will be canceled.

Fabric insurance claims

If you pass away due to a covered event, your beneficiary, a friend or family member should contact Fabric to request an Initial Death Claim Notification within 20 days of your death. The person who contacts Fabric will need to be able to provide basic information about you, and we recommend that you provide a copy of your policy to your beneficiaries, so they have all the relevant details. Your beneficiary will need to complete some additional claim forms, supplied by Vantis Life, as well as provide a final death certificate.

The claim will be filed with Vantis Life Insurance Company, who will determine if an investigation is needed and request any additional information from your beneficiaries. After the claim is reviewed and determined to be in good order, your beneficiaries should receive a payment within a few days.

Maxime Croll

Maxime is a Director at ValuePenguin focusing on the insurance industry. Previously she was the Director of Product Marketing at CoverWallet, a commercial insurance startup, and helped launch NerdWallet's personal insurance business. Maxime has contributed insurance insights and analysis to Forbes, USA Today, The Hill, and many other publications.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.