I am always saddened to hear the stories of people needing to raise money for the passing of a loved one who did not have a life insurance policy or surviving family members not having the immediate resources to pay funeral expenses...
Comparing Options To Cover Funeral Expenses
I am always saddened to hear the stories of people needing to raise money for the passing of a loved one who did not have a life insurance policy or surviving family members not having the immediate resources to pay funeral expenses. When family members need financial assistance they often turn to a crowd-funding page.
Setting up a crowd-funding page is helpful when there are costs that are due to unexpected accidents since a life insurance policy doesn’t cover expenses while one is alive and there is an immediate monetary need.
According to The National Funeral Directors Association the average cost of a funeral is $7,000 in the United States. In general, the crowd-funding pages do not meet the amount of the goal needed to cover these costs. To further complicate the situation, a crowd-funding page, such as GoFundMe, charges a fee for administrative expenses for using their platform. In addition, the promoter of the page could potentially be taxed on the amount raised as income on their annual filing.
The amount received by a beneficiary in a life insurance is not taxable as income.
Therefore, should one spend a few dollars a day on a life insurance policy that could adequately cover the expenses or rely on putting hope in a crowd-funding campaign?
Life insurance is a cost-effective and tax-free solution to lessen the burden of funeral expenses. It is less expensive than people think and there are options for both young and old to be covered. In the case of planning for a funeral, there are policies that simply require a short questionnaire without a medical exam.
Contact my office at (269) 447-2042 for a no obligation review of the options that best fit the situation for you and your family.