GoFundMe is Not Life Insurance Get Insured!
This post contains affiliate links with Haven Life Insurance
Life insurance is a touchy subject for most. The average person does not want to think about their death, so they don’t put in the effort to actually plan for it. This thought process needs to change. I’ve seen a numerous amount of GoFundMe accounts after a tragic loss in someone’s family. This is not a reliable source of income because GoFundMe is not guaranteed. What if people just decide not to help you? Deaths to people without life insurance tears families apart because not only do they have to deal with the grieving process of your death, they now have to also handle the financial burden of it. The average cost of a funeral is between $7000 – $10,000 and they aren’t getting any cheaper too!! Don’t put this added stress on your family members just because you don’t want to “think” about it. You should leave your family with an inheritance. Especially if you have children and a spouse. When you die your main source of income is gone if you have a regular 9-5 job. If that income provides shelter, food, and resources for your loved ones, then why not protect it in the event of an unexpected tragedy?
There are several types of life insurances that you can buy but in this post, I’m going to explain why term-life insurance is a great option for the majority. In comparison to whole life, term life is historically cheaper because you’re only paying the premium for the policy’s death benefit. You can set up a 10, 15, 20 or 30-year term policies and you are guaranteed a full death benefit if you die within those terms. With whole life insurance, it’s more expensive and it includes a cash value portion that grows tax-deferred but you make payments for this policy until you die. Traditionally, you can also borrow from the cash value portion accumulated within these policies, but if you die your beneficiaries will only receive the death benefit payout. Additionally, the cash value portion of your whole life policy is poorly invested and most don’t even keep up with the S&P 500.
To combat these high whole life insurance prices, people get a cheaper term life policy for 20 years and invest the amount they would need to cover their expenses by the time the 20 years are up. Then, as their personal investments grow over time when the term-life policy expires, they’ll have enough saved to protect their loved ones if they were to die. How much of a term life policy should you get? If you’re single with no children and no mortgage I’d recommend at least enough to cover your funeral expenses and debt. If you have a family, student loans and a mortgage I’d recommend enough to pay all of your mortgage and debt off while also thinking about funding your kid’s college and replacing your after-tax income for 10 years. With the life insurance payout, your spouse can use that money to invest in other assets that can replace your income.
Here are some examples of term life quotes. A healthy 30-year-old woman can get a half a million dollars 20-year term policy for less than $20 a month.
The same person applying for $500k amount of insurance with a whole life policy
A healthy man can get $100k 20 year term policy for less than $10 a month. That’s less than the standard Netflix subscription. You literally spend this at lunch daily. Why not get insured to protect family?
I personally have a policy with Haven Life Insurance. They are backed by Mass Mutual. Check out their Term Life insurance calculator below