It is more reliable and exclusive to purchase life insurance than to use crowdfunding for last-minute expenses.
This is a common occurrence: a family member loses a loved one unexpectedly and has to ask for help to pay the expenses. Many of us have seen memorials in social media sites, crowdfunding websites or donation boxes at local shops for families dealing with an unexpected loss. Many times, the family must reveal personal information – waiving privacy – to get the help they need.
No one wants to imagine their loved ones in this situation, so many people give cash out of compassion.
Life insurance coverage can help survivors avoid the financial battles that come with an unexpected death. The cost could be less than you think.
LIMRA, an insurance and economic services professional company, asked participants to estimate the cost of a $250,000 Term Plan for a 30-year-old healthy individual. Over half assumed $500 or more each year. The average cost of a policy is greater than $160 per year.
In a 2015 study by the Funeral Service and Memorial Information Council, 17% of adults aged 20-39 used web solicitations to fund funeral expenses. These numbers are increasing. In fact, one of the largest crowdfunding sites reported that 13% of projects since 2017 were memorial funds. Generally, these funds have increased by $3,000 for each project. Other crowdfunding sites have reported lower standards.
Why do so many people resort to crowdfunding?
Preparation is the key. Many young people do not consider the possibility that a fatality could occur or are “too active” to be prepared for the unexpected. This could also be due to a lack of information or incorrect information. LIMRA’s study also found that 61% millennials don’t purchase life insurance coverage due to other economic priorities. They do not consider the possibility that they could leave loved ones with the financial worry of a funeral and the need to turn to crowdfunding.
A life insurance policy will allow you to stop relying on others for help.
Insurance is not a “one size fits all” solution. Contact your local independent insurance agent to discuss your specific requirements and circumstances.
