Fabric nabs $2.5m to simplify life insurance

Life insurance startup Fabric has pocketed $2.5m in a Seed round led by Bessemer Venture Partners.

Box Group, Brainchild, Maveron, Red Sea Ventures and RGAx also participated in the round.

Brooklyn-based Fabric is a fully licensed insurance agency aiming to make purchasing life insurance more straightforward.

The company currently focuses on life insurance, offering coverage of between $100,000 and $250,000 for between six dollars and $15 per month with its policies issued by Vantis Life Insurance.

Farbic says in exchange for monthly payments a life insurance company agrees to pay a lump sum to beneficiaries if users die while their policy is in force.

The startup’s basic package only covers accidental death, which it says is the primary cause of death for 25 to 34-year olds. Users can upgrade to Fabric’s premium offering to include coverage for disease.

Company CEO and co-founder Adam Erlebacher said: “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.”

Fabric is currently available in 37 US states and aims to use the new capital to expand and grow its team from its current seven employees.

Copyright © 2017 FINTECH GLOBAL

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