When a loved one passes, the last thing you want to do in the midst of your mourning is have to track down a life insurance policy to claim a payout.
So what if you never had to do that — because there was a seamless digital way to inform your beneficiaries of the policy and have it follow them throughout life?
Fintech startup Fabric is offering just that.
A look at Fabric’s new Trusted Contacts feature
Recently, we told you about several ways to track down a lost life insurance policy. According to Consumer Reports, lost and unclaimed life insurance benefits amount to a $1 billion problem in America.
A variety of new online tools — many of them originating at the state level where all insurance is regulated — have helped unite more than 21,000 people with lost policies to the tune of nearly $310 million over the past couple years.
But online life insurer Fabric has a better idea.
First, let’s take a step back: In case you’re not familiar with Fabric, they’re an online seller of level-term life insurance policies — the kind that money expert Clark Howard likes — and they also offer free online will preparation.
And now, in what’s being billed as an industry first, Fabric has rolled out a new digital sharing feature for life insurance policies called Trusted Contacts.
The Trusted Contacts feature makes it easy for you to share basic policy info with your beneficiaries and keep them up to date with any future policy changes.
When you pop in your beneficiary’s email, they’re sent a follow-up message like this:
Then when they accept access, this is what they will see…
Best of all, if any changes are made to the policy down the road, they’ll automatically be notified of that, too.
The bottom-line is this: When a loved one passes away, it’s easy for a family to be thrown into financial chaos amid their sorrows.
Having a life insurance policy that digitally follows its beneficiaries is one sure way to mitigate that chaos so they can focus on healing from loss.