Today, crowdfunding campaigns are created for just about anything, from films, to wedding expenses, to helping out with a family member's medical costs. In the last few years, there has been a significant upswing in campaigns seeking money to cover burial and funeral costs for a loved one who has passed. GoFundMe, one of the largest and most popular fundraising sites, says more than 125,000 memorial fundraisers are created on its site and more than $330 million is raised every year.
The majority of funeral fundraisers are millennials, who have taken to the platform as a way to pay for final expenses. Nearly 20% of adults ages 20-39 said that they have used the internet to raise money for funeral-related arrangements, compared to just 4% of adults age 40 and older.1
While crowdfunding has gained popularity, it isn’t a guarantee. Life insurance, however, can provide a guaranteed death benefit to your loved ones, and it can be more affordable than you may think.
The cost of life insurance is, perhaps, one of the biggest misconceptions out there. Nearly half of U.S. adult consumers do not own life insurance2, but term insurance can cost as little as pennies a day.
A recent study surveyed Americans on the expected cost of term insurance (specifically, a $250,000 term life policy for a healthy 30-year-old.) Over half of the respondents estimated the policy would be greater than $500 annually, when the average cost is much closer to $170.3 This means more than half the population has the misconception that life insurance is three times more expensive than it is.
Most people know life insurance can help pay for final expenses, but there are a number of other benefits to life insurance, including helping: supplement retirement, fund college expenses, and business succession planning.
Though there have been examples of campaigns that go viral, success in crowdfunding is not guaranteed. Many likely won’t meet their goal and only raise a small amount.
The average cost for a funeral in 2021 was $7,848, but could rise above $10,000 depending on the burial options chosen.4 This can be a huge burden for millennials, especially since funeral costs would be on top of any other final expenses like medical bills, mortgages, and college debt.
According to the Federal Reserve, 40% of Americans would struggle to cover a $400 unexpected bill. While crowdsourcing has proven to be a backstop for some, providing your loved ones with the peace of mind of a guaranteed death benefit can remove one major stressor during a difficult time.
If you’re unsure where to start, you can get a free term quote to give you an idea of what a policy could cost. A financial professional can help you assess how much insurance might be right for you, and help with your overall financial planning.
2 Life Happens and LIMRA
3 Insurance Barometer, Life Happens
GoFundMe is an independent company not affiliated with Midland National ® Life Insurance Company.
Life Happens, is a nonprofit organization dedicated to helping consumers take personal responsibility through ownership of life insurance and related products.
The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.