Why Life Insurance Trumps Social Media Fundraising for Your Loved Ones

Life Insurance Offers Guaranteed Coverage

Life insurance provides a guaranteed payout to your beneficiaries in the event of your death, as long as your policy is active, and your premiums are paid. This means that your loved ones will receive the death benefit regardless of whether you have a social media following, or if your fundraising efforts are successful. According to a 2021 study conducted by Life Happens and LIMRA, over 60% of Americans have life insurance, and 40% of those without it say they would have immediate trouble paying living expenses if the primary wage earner died. Social media fundraising, on the other hand, is not guaranteed and normally depends on the willingness of others to donate. Even the most successful campaigns may not provide enough money to fully cover the costs associated with a tragic event.

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For example, in 2018, a GoFundMe campaign was created for the family of a young girl who died unexpectedly in a car accident. The campaign raised over $40,000, but the family still had to pay nearly $10,000 out of pocket for funeral expenses. In another instance, a family created a GoFundMe campaign to raise money for medical bills when their daughter was diagnosed with a rare illness. The campaign raised over $30,000, but the medical bills totaled over $100,000.

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Life Insurance is More Cost-Effective

Life insurance policies can be tailored to fit a variety of budgets, and the monthly or annual premiums are typically less expensive than the amount you would need to raise through a social media campaign. For example, a 30-year-old non-smoker can get a 20-year term life insurance policy with a $500,000 death benefit for as little as $20-$30 per month. According to a study conducted by Northwestern Mutual, nearly 80% of Americans believe that most people need life insurance, but only 57% own it. This suggests that people understand the importance of life insurance but may not be taking the necessary steps to obtain it.

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On the other hand, while GoFundMe campaigns can be successful in raising funds, they come at a cost. GoFundMe charges a platform fee of 5% on all donations and a payment processing fee of 2.9% + $0.30 per donation. This means that if a campaign raises $10,000, GoFundMe will take $700 in fees. Additionally, the success of a campaign is dependent on the generosity of strangers, and there is no guarantee that the full amount needed will be raised. A successful GoFundMe campaign may thus require a larger amount of money to be raised to cover the same expenses and may require more time and resources to manage.

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Life Insurance Provides Peace of Mind

Life insurance provides peace of mind knowing that your loved ones will be taken care of in the event of your unexpected death. With a life insurance policy, you can rest easy knowing that your beneficiaries will be able to cover expenses such as mortgage payments, car loans, and other essential costs. This can help alleviate the stress and financial burden that would be placed on your loved ones if they had to rely on social media fundraising to cover these expenses. Furthermore, relying on social media fundraising campaigns can be unpredictable and inconsistent. The success of a campaign depends on the generosity and support of others, which may not always be guaranteed.

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Social media fundraising platforms like GoFundMe can be helpful in raising money for unexpected expenses, life insurance remains a better and more reliable option for providing financial security to your loved ones. The statistics and real-life examples presented in this article demonstrate the importance and effectiveness of life insurance as a means of financial protection. It is important to consider life insurance as a priority when planning for your financial future.

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GoFundMe campaigns can be successful in raising funds, they come with a cost. GoFundMe charges a platform fee of 5% on all donations and a payment processing fee of 2.9% + $0.30 per donation. This means that if a campaign raises $10,000, GoFundMe will take $700 in fees. Additionally, the success of a campaign is dependent on the generosity of strangers, and there is no guarantee that the full amount needed will be raised.

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While social media fundraising campaigns like can be a useful tool for raising funds and unexpected expenses in raising funds, they come with a cost, are not guaranteed, and should not be relied upon as the sole source of financial protection. Life insurance is a more cost-effective option for providing financial protection for your loved ones. The available data and overwhelming number of real-life examples too numerous to present in this brief article, demonstrate the importance and effectiveness of life insurance as a means of financial protection. By planning and purchasing a life insurance policy, you can ensure that your loved ones are financially protected in the event of an unexpected tragedy without the added stress and uncertainty of relying on social media fundraising.