Life insurance startup Fabric, a service designed to aid the 37 million American families without life insurance, just expanded coverage across 32 states. Plans start at six dollars a month for $100,000 in coverage.
How does a life insurance company qualify as a startup? Because Fabric uses its proprietary technology to allow users to make a purchase in two minutes, whether from their phone, tablet, or desktop.
How It Works
American families are likely to put off getting life insurance for a variety of reasons. They don't have to time to purchase it, it costs too much, or they simply don't understand the options and benefits available to them. Fabric steps into that market gap with a uniquely affordable, simple process.
Here's how Fabric co-founder and CEO Adam Erlebacher explained the reasoning behind their business model in a recent press release:
“Life insurance isn’t something you think about or buy every day and the existing system is built to take advantage of your confusion. You should be able to make a good choice by default. Life insurance is a fundamentally important product for new and expecting parents. It should be affordable, simple, and fast.”
As young parents themselves, Adam and cofounder Steven Surgnier have a vested interest in streamlining this type of regulated industry: They've also helped build Simple, a digital banking service that simplifies personal finance.
Accidental Death Is a Risk
According to a 2016 CDC report, accidental death is the biggest risk in the lives of 24-44 year olds. Fabric Instant — the two-minute version — can eventually be replaced by Fabric Premium — a 20-year term life insurance policy — so that users stay covered for, well, life.
“Policies are issued by Vantis Life, which was founded in 1942 and has a rating of “A” (“Excellent”) for financial strength and claims-paying ability from A.M. Best,” Fabric further explains their process. “Fabric’s proprietary technology is built on modern cloud infrastructure and is architected to flexibly address state-by-state insurance requirements across a wide variety of insurance products at scale.”
Fabric has been backed by Bessemer Venture Partners and has a growing team of experts in insurance, data and tech. Check out their website to see if your state falls under their coverage. If not, try again soon: New states are being added weekly. Watch the short video here to see how it works.
While you're waiting, check out the six types of insurance that every freelance worker needs to know.
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