You have probably seen people starting GoFundMe pages to cover medical bills or other unexpected expenses. Crowdfunding platforms like GoFundMe can be successful, but asking strangers for money during an emergency can be stressful, and there is no guarantee you’ll meet your funding goal.
Life insurance, on the other hand, can protect your family from life’s unexpected circumstances. So today, the team at Medical Profiles is here to compare the pros and cons of a whole life insurance policy VS GoFundMe pages.
Why Should I Get Life Insurance?
More and more people have been turning to GoFundMe to manage unexpected costs, which is a concerning trend. Life insurance is a much more reliable option than setting up a GoFundMe if you want to protect your family if you unexpectedly pass away. Below are just a handful of reasons why life insurance coverage is the superior option compared to a GoFundMe page.
Crowdfunding Can Fail
The main downside of a GoFundMe campaign is there is no guarantee you will actually meet your funding goal. Only about one-fourth of GoFundMe campaigns reach their funding goals, and the average amount raised is about $7,000. Also, you will have to pay fees for any donations you receive when you use a platform like GoFundMe. Lastly, the IRS may count any donations as gifts, meaning you’ll have to pay income taxes on any funds you receive.
Life Insurance Gives Assurance
Life insurance, in contrast, can give you peace of mind by ensuring that your family and loved ones will be financially secure in the event you pass away. Life insurance offers multiple levels of protection to reimburse loved ones for medical bills, lost wages, outstanding loans, funeral costs, and more.
GoFundMe amounts are static, and your family might end up with more outstanding bills than your fundraising goals. Moreover, your loved ones won’t have to worry about the frustration of running a GoFundMe campaign when you have a comprehensive whole life insurance policy.
Life Insurance Has Additional Benefits
The benefits of life insurance don’t stop at providing your family with money when you die. Life insurance companies can provide several additional benefits, many of which you can still access while alive. For example, living benefits riders let you tap into your life insurance policy to pay for things like palliative care and emergency hospital bills.
A whole life insurance policy also carries a cash value portion that accrues value over time. You can use the cash value portion of a policy to grow wealth and pass it down to policy beneficiaries tax-free.
GoFundMe Is Just Not Reliable
The main reason you should choose a life insurance policy over a GoFundMe fundraiser is that GoFundMe is just not reliable enough. Although many people have successfully met their fundraising goals, life insurance provides guaranteed coverage without needing to spread and market your cause.
Should I Get Life Insurance?
If you have children or are the main source of income for your family, a whole life insurance policy is a smart way to protect your loved ones from financial stress if you die. Even if you are young and healthy, a life insurance policy can be worth it as a hedge against emergencies. You can get a more favorable policy if you buy when you are younger. So, buying earlier rather than later is ideal.
Book an Appointment Today!
Whether you need testing for a whole life insurance policy or just want to stay on top of your health and wellness, we can assist you. Reach out today at (832) 251-3926, or Contact Medial Profiles online to schedule a paramedic appointment!
