Life insurance is more dependable and private than crowdfunding to cover final expenses.

It’s an all-too-common occurrence: A family loses a loved one unexpectedly and is forced to appeal for help to cover expenses. Many of us have seen the memorials on social media, the crowdfunding websites, or the donation bins at a local store for a family dealing with an unexpected loss. In many cases, the family must reveal personal details – forfeiting privacy – just to get the help they need.

No one wants to picture their loved ones in such a situation, so many donate money out of sympathy.

A better option is life insurance protection to help survivors avoid the financial struggle that comes with an unexpected death. And the cost may be less than you think.

When LIMRA, a leading insurance and financial services trade organization, asked survey respondents to estimate the cost of a $250,000 term policy for a healthy 30-year-old, more than half guessed $500 per year or more. The average cost of a policy is closer to $160 per year.

A 2015 study by the Funeral and Memorial Information Council found that 17% of adults ages 20-39 used internet solicitations to fund funeral expenses, and these numbers are growing. In fact, one of the largest crowdfunding websites said that as of 2017, 13% of their campaigns were memorial funds. And on average, those funds raised $3,000 per campaign. Other crowdfunding websites reported lower averages.

So why do so many people turn to crowdfunding?

The main reason is insufficient planning. Most young people don’t even consider the likelihood that death can occur or are “too busy” to plan for the unforeseen. It also could have been lack of information or incorrect information. The LIMRA survey also found that 61% of millennials don’t purchase life insurance because they have other financial priorities. They neglect to consider the possibility they may leave loved ones with the financial burden of a funeral and the need to turn to crowdfunding.

Life insurance can eliminate the need to rely on the generosity of others.

There is no “one size fits all” solution for life insurance. Reach out to Matt Becker at JF Insurance (262-728-2631) to discuss your specific needs and situation.


Neither Johannesen-Farrar Insurance nor its affiliates or representatives offer tax or legal advice. Consult with your tax advisor or attorney about your specific situation. For policy service and additional information, speak to an agent. For a complete statement of the coverages and exclusions, please see the policy contract. All applicants are subject to underwriting approval. Products and riders are available in most states.


By Major Bernhold and Brian Druley of the Cincinnati Life Insurance Company