GO FUND ME A LIFE INSURANCE POLICY!

GoFundMe accounts have taken over life insurance policies hosting over 10,000 funeral and memorial campaigns to date and being the second most popular category.  What was meant to be a “fundraising” site turned into a quick way to receive assistance when a loved one has passed away. GoFundMe accounts have also been created to even support health care expenses and other personal causes that tug on the hearts of its donors. Most people don’t plan their funeral, parents’ funeral, and/or their children’s funerals; therefore leaving loved ones to figuring out how to cover costs. And you must not forget that the donors are usually family members, friends, and/or someone who took the death to heart.  Did you ever consider the Internal Revenue Service or the laws in your state?  Whatever money you have received in excess of funeral arrangements, the extravagant tombstone, platinum coffin, and the other numerous GoFundMe accounts tied to you will send a red flag to the IRS!! Some of that money raised may not be considered a “gift”. And let’s not forget the donors.  They will not be rewarded a tax right off simply for giving you 100’s or 1,000’s of dollars unless you are a nonprofit.

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If you are planning to set up a GoFundMe account for someone who is an adult; plan on paying for out-of-pocket expenses because most people will not give unless there is a heartfelt story behind the death. Because of this increasing epidemic, other crowdfunding platforms such as GoFundMe, YouCaring, and Indiegogo have paved the way for Funeral Fund and Graceful Goodbye. Why not take the proper steps to pay for life insurance? It isn’t as expensive as you may think.

If you are hard-up on money; start with a reasonable life insurance policy that will assist in funeral cost.  A policy as small as $25,000 for yourself will be just fine.  Paying for it monthly isn’t expensive.  Expect $5-$10 monthly for this small amount if you are in your 20’s and early 30’s.  Now the cost of insurance goes up the older you get; therefore it is important to start at a younger age. When my children were born; I invested in a whole life insurance policy for both children and myself.  I did not get a huge policy, but I got a policy that would assist each sibling if one passes away. Because I was young, I started with a small policy that would cover funeral expenses and just enough to get by temporarily.  I wasn’t trying to become rich off of my children. If you have young children, I would suggest looking into policies between $5,000-$10,000. For me, I made sure my policy would cover my funeral cost, mortgage, and support for my children when I die.  I took advantage of the small insurance policy offered by my employer. I also have my burial and tombstone paid for already (pre-planned funeral arrangements).  A matter of fact, my brother and parents have already paid for their burial and tombstone expenses ahead of time in order to keep the expense reasonable for all of us remaining after death.

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Whole Life Insurance

Yes, I am starting with the most expensive life insurance policy.  Whole life insurance is just that.  It doesn’t have a time frame of expiration and it cost more than term life insurance because of this advantage.  If you have children, I would suggest investing in this for yourself.    With whole life insurance, you have the opportunity to grow with your whole life insurance policy especially if you are blessed to see your children grow into becoming adults and the return rate is beneficial. You have the option to borrow from the policy or surrender it (if necessary). Just take note that if you borrow from this, you will decrease the amount of the policy if not paid back. Please research more on this fantastic choice.

Term Life Insurance

This type of insurance is the least expensive and expires within a specified term.  This type of insurance policy is also suggested if you are trying to cover a specific amount of years while you are building savings and paying debts such as school loans, credit cards, and mortgages.  If you are that parent that only wants to cover your children for a specific amount of time (until they become adults), this insurance choice may be the right one for you.  By then, your children are expected to become financially stable and independent and you are ready for retirement. For example, if you purchase a policy that is 10, 20, 30 years and you pass away within that time frame; your beneficiary will receive the life insurance.  If you are still alive; your policy pays you nothing and you will have to purchase another policy to cover you again. If you want the most affordable policy coverage, I suggest starting with this.

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Research life insurance companies and purchase a reputable policy.  That is one mistake I made at a young age.  I review the complaints made by some policyholders concerning American General, and I just cringe.  Once you purchase the policy, make sure you keep ALL paperwork in a safe place and make sure your beneficiary is aware of where to find it in case an issue arises.  You do not want your beneficiary going thru any funny business when it is time to pay up.  If you lose your policy; ask for a replacement pronto!!!

Lastly, stop spending money on things that don’t assist in your wellbeing.  Why continue to spend on phones, sneakers, cars, jewelry, hair, etc. if you haven’t taken the steps to pay on a life insurance policy for not only you; but your children too?  Take that money and invest in a life insurance policy that will be beneficial for you and your children too.  Get into the habit of putting money aside into not only life insurance but a savings plan as well.  Make sure your loved one(s) doesn’t have to worry about the funeral.