Young families often cannot afford to purchase a life insurance policy due to the high cost. Online insurance startup Fabric offers affordable life insurance policies for young families. Thanks to a patented underwriting algorithm, the company processes a large number of applications, and their policies are cheaper than those in other LICs.
Fabric life insurance principles are as follows:
Insurable interest: an insured is supposed to have interest in his life for this type of insurance. If such service is offered to the employer, he has to be interested in preserving health and life of hired employees, or the spouse - in life of the other half, or the parent - in life of the children, or the creditor - in life of the debtor.
Financial interest: to insure someone's life, the policyholder should have a money interest in the life of the insured person. The insurance value should not be higher than the quantitative evaluation of interest.
The relationship between the beneficiary and insured person: according to the insurance agreement, the policyholder has the right to appoint any insured person as a beneficiary. He has also the right to replace this person with another before the insured event occurrence.
Bonus registration system: the insurance company calculates a bonus for the annual output, which is paid to the policyholder. The bonus can be used to increase the insurance coverage under the contract or to reduce insurance premiums.
Source: https://boingboing.net/2021/01/06/fabric-is-making-life-insurance-an-easy-win-for-new-parents.html
Photos are from open sources.
