Fabric Life Insurance: Is It Worth The Hype?

Fabric by Gerber Life is a direct-to-consumer life insurance provider that offers online quotes and applications. It is a good option for those seeking an easy and fast way to sign up for a policy, with competitive rates and customizable coverage. The company provides a simple online and mobile application process, and most applicants won't need a medical exam for term life insurance. However, it is not available in every state, and there are no optional riders to personalize your policy. Overall, Fabric by Gerber Life is a credible company with policies issued by one of the oldest insurance companies in the industry, but shopping around may reveal lower term life insurance policies.

Fabric by Gerber Life offers a simple online and mobile application process

The Fabric platform offers a range of term life insurance options with policy terms of 5, 10, 15, 20, 25, or 30 years. The coverage amounts range from $100,000 to $5 million, depending on the applicant's age and other factors. Fabric's algorithm determines whether applicants are offered coverage immediately or if further health evaluation is needed. Most applicants won't need a medical exam to qualify for term life insurance.

In addition to the simple application process, Fabric by Gerber Life also provides financial planning tools for parents. The platform helps users calculate their insurance needs based on factors such as mortgage, debts, and college tuition. Fabric also offers a free will creation service, investment accounts for children, and the ability to sync finances with a spouse or partner.

The company's mobile app is compatible with Apple and Android devices, providing users with convenient access to their insurance information and additional features. Fabric's ratings from Trustpilot and the Better Business Bureau further emphasize its simplicity and ease of use.

The platform offers financial planning tools for parents

Fabric is an online platform that offers a range of financial planning tools for parents. The platform was launched in 2019 by co-founders Adam Erlebacher and Steven Surgnier to help parents protect their family's financial future. Here's a detailed look at the platform's features and how it can assist parents with their financial planning:

Simple and Accessible

Fabric's mobile app is designed to be simple and accessible for parents. It offers a range of tools to help parents plan for their long-term financial well-being, all accessible from their phones. The app is available on the Apple App Store and Android, making it convenient for users.

Life Insurance

One of the key features of the Fabric app is the ability to apply for term life insurance directly from the app. Fabric offers affordable term life policies that can be tailored to fit an individual's budget. The application process is simple and can be completed in as little as 5 to 10 minutes. Most applicants won't need a medical exam to apply for term life insurance. Fabric offers policy terms ranging from 5 to 30 years, with coverage amounts from $100,000 to $5 million.

Will Creation

The Fabric app also allows users to create a will directly from their phone. This important document can be created in about five minutes, and users can name a guardian for their children and decide how their assets will be distributed. The app even helps spouses create mirror wills, facilitating important conversations about their wishes.

Financial Organization

Fabric helps parents organize their financial lives by providing a secure place to store and share important financial information. Users can link their bank accounts, investment accounts, 401(k)s, IRAs, and credit card accounts, giving them a comprehensive view of their family's financial picture. This makes it easier for spouses to locate important financial information and ensures that everything is in one place in case of an emergency.

Collaboration and Security

The Fabric app is built for collaboration, allowing spouses or partners to work together to plan their family's financial future. It employs bank-level security measures, including 256-bit encryption, two-factor authentication, automatic lockout, and biometrics, to keep users' information safe.

Additional Features

In addition to life insurance and will creation, Fabric offers other tools to help parents with their financial planning. Users can open investment accounts for their children, start saving for college with a 529 plan, and set up a rainy-day fund in a high-yield savings account. The app also facilitates communication and information sharing between partners, ensuring everyone is on the same page regarding the family's finances.

Overall, the Fabric platform offers a comprehensive suite of financial planning tools specifically designed to meet the needs of parents. By providing an accessible and secure way to manage life insurance, create wills, and organize finances, Fabric helps parents protect their family's financial future.

It is not available in every state

Fabric by Gerber Life is not available in every state. The company's policies are currently unavailable in New York, California, South Dakota, North Dakota, South Carolina, Wisconsin, Montana, and Florida. Additionally, its accidental death policies are not offered in Colorado, Massachusetts, Montana, New York, North Dakota, Pennsylvania, Virginia, and Washington.

This limited availability is a notable drawback for individuals residing in these states and seeking life insurance options. It restricts their ability to access Fabric's services, underscoring the importance of prospective customers confirming the availability of Fabric's products in their specific state.

While Fabric by Gerber Life aims to simplify the process of obtaining life insurance, particularly for parents, this geographical limitation is a crucial factor to consider when assessing the suitability of the company's offerings for individuals and families.

For those residing in eligible states, Fabric by Gerber Life offers a convenient platform for acquiring term life insurance and accidental death policies. The company's application process is straightforward, often taking as little as 10 minutes to complete, and it provides competitive rates with customizable coverage options.

Fabric's term life insurance includes an accelerated death benefit rider

The accelerated death benefit rider is a relatively new offering in life insurance policies, and it can provide much-needed financial support during difficult times. It is important to note that the availability of this rider may vary by state and insurer, and it is always a good idea to carefully review the terms and conditions of your specific policy.

With Fabric's term life insurance, you can access this benefit if your life expectancy is 12 months or less. The accelerated benefit payment will reduce the death benefit of the policy on a dollar-for-dollar basis. This means that any money received through the rider will be deducted from the final payout to your beneficiaries.

While Fabric's term life insurance offers this valuable rider, it is important to consider all aspects of a life insurance policy when making a decision. Fabric's policies are currently available in all US states except New York, and they offer term lengths of 10, 15, 20, 25, or 30 years to individuals aged 21 to 70. Most applicants won't need a medical exam, making the application process simple and convenient. However, it is worth noting that Fabric has received more consumer complaints than expected, according to a NerdWallet analysis.

Fabric is a direct-to-consumer provider, making it easier to understand and obtain life insurance

Fabric by Gerber Life is a direct-to-consumer life insurance provider, aiming to simplify the process of obtaining life insurance. The company acts as a managing general agency, meaning that enrolment for life insurance can be done directly through Fabric, without the need for an insurance agent. This direct-to-consumer model allows Fabric to save money and pass on those savings to its customers.

Fabric offers a simple online and mobile application process, which can be completed in as little as 10 minutes. The application includes a health and lifestyle questionnaire, and most applicants won't need a medical exam to receive term life insurance. Fabric provides a "personalised checklist" with recommendations based on your answers to their initial questions. They also help you calculate your term life policy coverage of up to $5 million.

Fabric's term life insurance is available in term lengths of 5, 10, 15, 20, 25, or 30 years, and policies range from $100,000 to $5 million. The company offers sub-standard rates for heavy smokers, those with pre-existing illnesses, and those with a family history of illnesses. However, Fabric does not specialise in these rates, and better rates can be found elsewhere.

In addition to life insurance, Fabric offers no-cost will creation services for both policyholders and non-policyholders. They also provide financial planning tools for parents, such as investment accounts for children and the ability to sync finances with your spouse.

While Fabric's services are not available in all states, they are a credible company, and their policies are issued by Western-Southern Life Assurance Company, one of the oldest insurance companies in the industry. Fabric has a Trustpilot rating of 4.8/5 and an A+ rating from the Better Business Bureau.

Frequently asked questions