Crowdfunding as we know it today got its start in the late nineties, and, in the last decade, has grown and evolved as a widely used source to get financial help from both loved ones and people across the globe. Crowdfunding platforms like GoFundMe are often used to raise money for unforeseen healthcare expenses, funeral expenses, or other issues that an individual may have trouble paying for on their own.
In a difficult time, this may seem like your only option; however, GoFundMe is not a substitute for life insurance, and shouldn’t be seen as one. Before you reach this point, it’s important to have a discussion about life insurance and how it can benefit you and your loved ones.
Term Life Insurance Vs. Crowdfunding
Even if you are single with no children and rent your apartment, you need life insurance. A life insurance death benefit allows your beneficiaries to have access to funds from your policy to cover any funeral expenses, debts, etc. that you may leave behind in the event of your death, rather than them having to ask friends, family and colleagues for the funds. This prevents your loved ones from incurring any financial problems after your death, and also allows them to properly grieve and honor your memory the way you deserve, instead of figuring out where they are going to find the money necessary for these unforeseen expenses.
Reasons You Need Life Insurance (And To Not Bank On Crowdfunding)
Life insurance is for your loved ones, not you
This may seem counterintuitive, but it’s actually a great way to describe the need for life insurance. A term life insurance policy comes with a death benefit that can help your family or other loved ones pay for your funeral, continue to pay regular bills, or fund future education.
Life insurance gives your loved ones time to grieve
Sure, crowdfunding can seem like a good idea, but only in theory. When your loved ones set up a GoFundMe, it is one more thing to add to their plate after your death, when instead they should be using this time to grieve.
Life insurance death benefits are not taxed, and you receive the money quickly
When you choose to crowdfund, you have to pay fees to companies like GoFundMe to collect your donations, and there is no guarantee you will reach your goal by your deadline (or at all).
Crowdfunding campaigns do not often reach their goal
Less than 25% of all campaigns are completely successful, and the average campaign only raises around $7,000, which typically isn’t enough to cover funeral costs, let alone other debts and expenses. When you purchase a life insurance policy, you know exactly what the death benefit your family will receive is.
Why Don’t People Purchase Life Insurance?
They think they don’t need it
When you’re young, healthy, and don’t have children, it seems like the easy choice to not purchase life insurance. What many individuals don’t realize, however, is that that is one of the best times to purchase your term life insurance policy. When you are at your healthiest, your rates will be better than if you decided to purchase a policy ten to twenty years from now.
They think it’s too expensive
Term life insurance is an affordable way to pay off any debts and replace your wages when you pass. Purchasing a term policy that spans five to thirty years is a less expensive option than a permanent policy. Even better? Many policies cost less than $200 per year, depending on your current health and other factors.
They think it will be a long, drawn out process
Life insurance is easy to purchase, especially when you have a team of experienced life insurance agents helping you out. Depending on your current health status, you may not even need a medical exam! The team at Low Cost Life Insurance works with you to make this as easy of a process as possible for you and your family.
Reach out to our team today!
Our team understands that purchasing life insurance can be scary for a lot of people. Not knowing the financial commitment, not wanting to think about death, and so much more contribute to people not purchasing it. Reach out to our team to learn more and get a free quote on your policy today.
