As parents, we’d do anything to protect our kids’ future, especially when the world is so unpredictable. When you welcome a new family member, your world revolves around their education, upbringing, and teaching life in general right from day one to college and beyond.
As the breadwinner, you might provide everything for your family without straining your budget. But you cannot overlook the pandemic and stay oblivious to how your kids will do if you pass away. The key takeaway from this unending pandemic is that life is fragile, and we should have everything in place in case the worst happens.
Households can be chaotic, especially for new or busy parents. Sometimes you can miss out on must-dos, but you don’t get a pass when it’s about your child’s future. In a world so volatile, you can secure a term life insurance to protect your kids without burning a hole in your pocket.
In simple words, a term life insurance will cover your children’s college fees, debt, daily expenses, bills, etc. It is a lump sum payout that will be made to the beneficiaries for use as necessary in case you pass away.
If you are already covered by your employer, note that you can lose the coverage when you change jobs or become unemployed. Usually, the group coverage from employers is lower than what your kids would need for a financially comfortable life. Experts suggest that it should be 5X times your annual income.
Accelerated Policy Underwriting is the new Normal
Usually, people have to go through lab tests, medical exams, or a visit to the doctor before a company can underwrite a term life insurance. In the new era of social distancing, it doesn’t make sense to head out for life insurance. Today, modern technology allows you to buy term life insurance right from your smartphone within minutes for as little as $14 a month.
Accelerated underwriting is the process where your basic information, lifestyle, and health details are run through complex algorithms to offer you a range of confirmed quotes.
A New York-based firm called Fabric is set to revolutionize the $1.22 trillion insurance industry. They allow you to purchase term life insurance, create wills, and organize legal and financial documents through their intuitive smartphone app.
Fabric was built around the idea of providing fast and affordable term life insurance without lab tests and doctor visits whenever possible. They offer 10-, 15-, 20-year term life insurance with coverage ranging from $100,000 to $5,000,000!
The 20-year term life insurance can be the best option for new parents, as their kids will stay protected until they move out.
Fabric claims that their accelerated underwriting algorithm can approve eligible candidates within seconds without any medical exam. Even if their proprietary acceleration tech does not approve immediately, humans will go through your application to see if you need an exam. If you are a stay-at-home parent, Fabric can offer you a term life depending on various metrics.
All policies from Fabric are issued by Vantis Life, a Penn Mutual company that is the second-oldest mutual life insurance company in the US. Established in 1847, Penn Mutual wholly owns Vantis Life, which is rated A+ by A.M. Best.
Your chances of securing an affordable term life insurance are high if you are generally in good health. You can take a short online quiz within a minute to get immediate quotes. If they look fine, you can proceed with sharing your personal information, finances, and health records over a secure channel. Fabric will use intelligent bots to assess your profile and can underwrite a policy instantly if you’re eligible.
In case you need to furnish more information, Fabric will assist you throughout and even schedule a free medical exam if required.
If you’re confused between whole life insurance and term life insurance, the former can cost you more. Agents usually try to upsell them for higher commissions. Whereas, a term life insurance can perfectly fit your budget while protecting your family for decades.
The premiums may fluctuate depending on your profile. For instance, tobacco usage will cost you more money.
For a better picture, a 29-year old woman in excellent health can get a coverage of $250,000 at just $14.61 a month. For a man who is 35 and in good health, the monthly premium can be $41 for coverage of $750,000.
Securing a term life insurance couldn’t have gotten easier. Fabric can be a good start towards long-term family well-being, especially for new parents and people without term life insurance. You can get a quote within seconds, and if the options look feasible, you can proceed with the questionnaire and possibly get instant accelerated coverage.
Fabric is available in all states except CA, NY, and MT.
We may earn a commission from links on this page, but we only recommend products we back. Newsweek AMPLIFY participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites.