Fabric Insurance, founded in 2015 by CEO Adam Erlebacher and CTO Steven Surgnier, is a fully licensed online insurance agency. Customers sign up through Fabric's digital process. The insurance policies are fulfilled by Vantis Life Insurance, which has been operating since 1942 and carry an A+ grade from credit-rating A.M. Best.
According to CEO Adam Erlebacher, in speaking to ValuePenguin, Fabric Insurance:
Lets you apply for term life insurance online, without needing to go anywhere in person or deal with agents trying to upsell you more expensive products than you need. It takes about ten minutes and you can get an immediate decision without a health exam.
Fabric Instant is the companies basic plan. They cover accidental death, such as automobile accidents, fire or murder, but exclude death by illness, suicide or participating in a riot.
The prices for the policy are tiered at $6 per month for $100,000 in coverage, $15 per month for $250,000 in coverage and $30 per month for $500,000 in coverage. Individual health does not impact acceptance, because the policy doesn't cover it. Some exceptions do depend on a state-by-state basis. For example, in Pennsylvania, military-related deaths and alcohol-related deaths are excluded.
The Fabric Premium policy is a life insurance policy which, unlike Fabric Instant, covers death caused by illness. The exclusions to this policy are suicide, regardless of mental state at the time of death, and misrepresentation on application.
Fabric Premium is a term life insurance policy, with offered terms of 10, 15 and 20 years with coverage up to $5 million. The term and amount can be modified by the user to best budget.
In some cases, applications for Fabric Premium will require a secondary review to ensure qualification and a blood test before Fabric will offer the user a policy. The test will impact Fabric's calculation of an individual policy's cost and coverage. However, there are no health-related exclusions.
Fabric Will is a free-to-use service which allows a user to put together their last will and testament. They also offer spouse's a "mirror will" where wishes shared between can be easily copied.
Through Fabric Will, a user can appoint a guardian, name a beneficiary, name an executor and name any final arrangements. Fabric will also share the will with those named so they know where to find the will.
Fabric's second free-to-use service allows partners to create a map of their finance's. Through Fabric Vault, users can share their financial data, including their bank, investments, 401(k), life insurance and other accounts, along with any login information necessary to access the accounts.
Fabric raised $10 million in June of 2018. Bessemer Venture Partners led the round which included participation from RGAx and Silicon Valley Bank, which provided a credit facility.
Documentaries, videos and podcasts
Fabric's Adam Erlebacher: 'No one wakes up thinking about how to buy life insurance'
September 8, 2019
How Fabric Works
March 15, 2017