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Should You Leave Your Family's Financial Future in The Hands of GoFundme?

Should You Leave Your Family's Financial Future in The Hands of GoFundme?

| June 05, 2023

Should You Leave Your Family's Financial Future in The Hands of GoFundme? You May Not Have That Many Friends...

Life is very unpredictable as we know it, and no one wants to dwell on the possibility of an untimely death.  However, it is essential to plan for the unexpected and protect our loved ones financially when we decide to accept dependents into our lives.  While GoFundMe campaigns can provide temporary relief during difficult times, relying solely on them as a safety net may not be the most efficient or reliable solution.  My goal is to explore with you the advantages of purchasing budget-friendly term life insurance over the relying on GoFundMe in the event of an untimely death.

1. Financial Protection for Loved Ones: Term life insurance offers a specific purpose by providing a defined death benefit to the beneficiaries. The death benefit is paid out to said beneficiaries if the insured passes away during the policy term.  This provides financial protection and stability for loved ones left behind in the form of an income tax-free death benefit.  In contrast, a GoFundMe campaign depends on the generosity of others and may not yield the necessary funds to adequately support the surviving family’s financial needs long-term.  There is also the potential that donations through crowdfunding campaigns would be treated as taxable income to the recipients or benefactors. 

2. Fixed Premiums and Coverage: With term life insurance, you have the option of paying a fixed premium for a predetermined period of time, usually 10-, 15-, 20-, or 30 years.  The coverage amount can remain constant throughout the policy term, providing predictable protection.  In contrast, GoFundMe campaigns can only provide funds if people contribute, and there is no guarantee of reaching the desired financial goal that is both desired or needed to cover the current and future stand of living for the surviving family members.

3. Financial Confidence: There is obviously a time and place for owning term life insurance.  When it comes to “adulting” knowing that your loved ones will be taken care of financially in the event of your untimely demise can bring confidence to your days.  Term life insurance can offer a contractual guarantee to pay out an income tax-free death benefit as long as the premiums are paid and the death occurs within the policy term.  This assurance can alleviate concerns about leaving a financial burden behind for your loved ones to navigate during a time of grieving.  The last thing we want for our loved ones is a drastic shift in current routine, standard of living, or future financial dreams at the sole cost of our untimely passing.  We can prepare better!

4. Flexibility and Customization: Term life insurance policies can be tailored to your specific needs.  You can select the coverage amount that adequately provides for your loved ones, ensuring their financial stability.  Additionally, term life insurance can be used to cover outstanding debts, mortgage payments, children’s education expenses, surviving spouse’s future retirement, replacement of income of the deceased spouse, or any other financial goals or obligations.  GoFundMe campaigns, on the other hand, lack this customization and may not fulfill all your specific requirements, leading to increased stress, anxiety, and frustration during a time of grief. 

5. Time-Sensitive Expenses: In the unfortunate event of an untimely death, there may be immediate financial needs such as funeral expenses, medical bills, or outstanding debts that need to be addressed promptly. Term life insurance can provide a quick and guaranteed payout, allowing your loved ones to manage these expenses without delays.  GoFundMe campaigns, on the other hand, may take time to accumulate sufficient funds, causing potential financial strain during this critical period. 

My conclusion is that while GoFundMe campaigns can serve as a temporary solution during difficult times of a permanent life event, they cannot wholly replace the benefits of purchasing term life insurance.  Term life insurance can offer financial protection, stability, fixed premiums, and a guaranteed payout in an income tax-free manner to protect your loved ones in the event of an untimely death.  By being proactive and planning ahead, you can implement term life insurance into your overall financial plan, providing you with assurance in your family’s financial well-being and provide them with the stability they need during challenging times. 

Remember to consult with a qualified financial representative professional who understands your specific insurance needs and can guide you on finding the most suitable life insurance coverage amount(s) and type(s) based on your unique circumstances.  If this is an area that  you would like some hand-holding please feel free to contact me directly at or call me at 864.593.2520. 

Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice.

This material is intended for general use. By providing this content Park Avenue Securities LLC and your financial representative are not undertaking to provide investment advice or make a recommendation for a specific individual or situation, or to otherwise act in a fiduciary capacity.

The primary feature of term life insurance is the death benefit.  All term life insurance policy guarantees are subject to the timely payment of all required premiums and the claims paying ability of the issuing insurance company.

Michael R. Acosta and Thomas J Dumas are Financial Advisors and Registered Representatives of Park Avenue Securities LLC (PAS). OSJ: 6115 Park South Drive, Suite 200, Charlotte, NC 28210. Securities products and advisory services offered through PAS, member FINRA, SIPC.  Financial Representatives of The Guardian Life Insurance Company of America®(Guardian), New York, NY. Park Avenue Securities is a wholly owned subsidiary of Guardian. Consolidated Planning, Inc. is not an affiliate or subsidiary of PAS or Guardian. Michael R. Acostas’ CA insurance license # 0M50974. Thomas J Dumas’ CA insurance license #OM90694. Guardian and PAS do not offer student loans to finance education nor do they offer legal to tax advice.  2023-156066 Exp. 5/25