A term life insurance policy is an agreement between you and the insurance company saying that if you pass away while the policy is active and in force, the insurer 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 “life insurance beneficiary”).

This money could be used to help replace your lost income and make debt payments in your absence. It could also include one-time expenses like funeral costs or other ongoing expenses after you’re gone.

Term life insurance, specifically, covers you during a certain time period, or term. If you had a 20-year term policy, for example, you'd be covered for that 20-year span. After that, your coverage would end unless you opted to buy another policy.

Often, people choose term life insurance as an affordable way to help protect their loved ones during a specific, high-need time. One of the most common situations is the time frame when they’re raising kids. After 20 years, for example, your kids might be out of the house and your need for life insurance might be lower. (Here’s more on how exactly life insurance works.)

Term life insurance policies through Fabric are optionally convertible to whole life insurance. Pricing would be based on the age at conversion, but no additional health information is required. The policy is only convertible up to the current coverage amount. It can be reduced, but it cannot be increased. Conversion can be any time prior to the policy anniversary following the insured’s 65th birthday. A separate application is required.

The term life insurance policy we offer is issued by Vantis Life Insurance Company, an insurance provider since 1942. Vantis Life is currently rated "A+" ("Superior") for financial strength and claims-paying ability by A.M. Best, the global authority on insurance company rankings. The policy you receive from Fabric is a legal contract between you and Vantis Life. It remains in force for the duration of your term, as long as you continue paying premiums.

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