There are a lot of reasons why someone might purchase life insurance. Most people first consider it when they have children. They want to know that even if they pass away, the people depending on them financially will be taken care of.
A life insurance policy is an agreement between you (the “policyholder”) and the insurance company (the “insurance provider”), that says that if a specific person passes away (the “insured”), while the monthly payments (the “premiums”) are paid-up, they will make a lump sum payment (the “death benefit” also referred to as the “coverage amount”) to the person or persons of your choosing (the “beneficiary”).
100%. So long as the event leading to your mortality is covered by your policy, and the premiums are paid. End of story.
There are a number of types of life insurance policies.
When you’re 25 - 44 the single greatest risk to your life is accidental death[1]. This kind of life insurance is built specifically for that. It tends to be affordable and, because the insurance provider doesn’t need to take your health into consideration, it can be purchased extremely quickly.
Fabric Instant is life insurance for accidental death. Plans start at $6.00 per month. Covered in under 2 minutes.
Term life insurance provides a death benefit that covers both accidental death and death caused by illnesses. It is often medically underwritten and requires a physical exam. Term life insurance tends to get more expensive to purchase as you age.
Fabric Premium is a 20-year term life insurance policy that you can upgrade to from Fabric Instant. It replaces your Fabric Instant policy and covers you for death caused by accidents and illnesses.
Whole life insurance is a product that offers coverage for the entire life of the policyholder. Its premiums include a mix of insurance and investment components, the latter of which builds accumulated cash value that can be borrowed against or withdrawn before you pass away. Whole life insurance policies are more expensive and complex. Certain fees and expenses will reduce the cash value.
You may convert Fabric Premium to whole life insurance if you wish.
Fabric Instant costs $6/mo for $100,000 in coverage, $15/mo for $250,000 in coverage and $30/mo for $500,000 in coverage.
Once we know a few details about you (including your age and whether or not you use tobacco) we can generate your quote for Fabric Premium. Depending on your age, gender, and specific health details, upgrading to Fabric Premium often costs just a few dollars more than Fabric Instant. In some cases, upgrading can actually save you money!
CDC, National Vital Statistics Report, Volume 64, Number 2; February 16, 2016, Table 9. ↩︎