Crowd Funding Should Not Be A Replacement For Life Insurance Here’s Why….
Friends and strangers who hear about a tragedy respond and donate what they can. Sometimes you’ll hear about communities rallying around a family in trouble and raising as much as $50,000. The fact is any amount raised over $10,000 is a tax reportable event, where as a life insurance benefit is paid tax free–. More often the average amount raised on a GoFundMe campaign is much closer to $2000, a far cry from covering the average funeral expense of $7000 to $10000. In addition, GoFundMe is not a source of income replacement, there will be no funds for the family to maintain its standard of living, no funds to help cover the costs of college, etc. A life insurance policy could have provided ALL of this and more.
“No Life Insurance, Help Spouse”
The above headline is a real one from a GoFundMe page, set up by a woman whose husband died suddenly after zip lining during a vacation in Costa Rica. “He is still in Costa Rica, and I am arranging for his cremation with the U.S. Embassy and need to do a memorial service, etc., and there is no life insurance for my immediate needs. ….I would be so grateful to receive funds so that I may cover the bills and our financial matters, which are large, as he was the main provider,” the wife says in her message.
As of January 22nd 64 people had contributed a total of $7,495 to this GoFundMe. This is nothing to sneeze at but it’s a far cry from the meaningful aid that would have been provided by having a life insurance policy.
“Father Killed, Daughter Seriously Injured, Please Help”
How often do you hear on the local news about a tragic death where the family of the deceased is immediately thrust into financial hardship because there was no life insurance? A case in point was a story earlier this month about a car accident in Nebraska that killed a 44-year-old man who was the passenger, while the driver, his 21 year-old daughter, suffered serious injuries. The family set up a GoFundMe page, which includes a touching letter detailing the hardships now facing the family.
Don’t rely on the generosity of others to provide the necessities for your family. Life insurance comes in all shapes and sizes. We at Goss Associates will help you find the right policy at a price that will fit your budget.
GOSS Associates can help you plan and prepare for life’s major events and to protect your loved ones in their time of need. Give us a call at 888 811-2592 and let’s get started! Or just click here