Why Crowdfunding Has Become The New Funeral Insurance

Why Crowdfunding Has Become The New Funeral Insurance

Losing a loved one is hard. Not only does it affect you financially, then you have to worry about planning a funeral and dealing with the things he or she left behind, including unpaid debts. The costs add up quickly, and many people find it financially difficult to handle it all.

In our digital world, people are becoming cleverer and finding a way. More and more people are turning to crowdfunding to cover the costs of a funeral.

What is Crowdfunding?

Crowdfunding is a way that people raise money by requesting donations from others online. Also called crowdsourcing, this type of fundraising has grown significantly in popularity in recent years. Many people use crowdfunding sites as a way to fund creative projects.

There has, however, been a rise in using this method for more personal reasons. There are even some sites, like YouCaring, that are specifically aimed at more personal causes, including funerals.

Funerals are Expensive

The hard truth is that funerals are expensive. Some people have final expense insurance to help cover the costs.

In the United States, the average cost is somewhere between $7,000 and $10,000. While not nearly as expensive, cremations can cost a few thousand dollars as well.

Without life insurance, burial insurance, or any other way to pay, many people just cannot afford the cost. Crowdfunding offers you a unique alternative.

When you sign up for a crowdfunding site, you are able to add pictures and a description, telling potential backers why you need the money. You set a goal and a timeframe. Successful campaigns can help to significantly alleviate the costs of a funeral or even eliminate your costs altogether.

People Aren’t Prepared

While most families are prepared for the death of older members, there are sometimes deaths that occur unexpectedly. It could be a young spouse, a sibling, or a young child. Families are rarely prepared for situations like these.

There may be no life insurance policy in place or there may be no savings to afford the costs. On top of the emotional toll losing a loved one unexpectedly has, you’re now having to deal with trying to afford a funeral with little to no money. Crowdfunding in these situations can be quite successful. In fact, some of the most successful campaigns are for those families who lost someone without warning.

A decrease in Life Insurance Sales

The costs of life insurance policies have decreased in recent years. This decrease is due to many factors, including better risk analysis and longer life expectancy.

Yet, even with the drop in the prices for premiums, fewer people are taking out policies. Life insurance is designed to help families financially who lose a loved one, and the income they once brought in.

With harder economic times, people are finding it difficult to plan for the long-term. As a result, families are at a much greater risk of facing financial hardship should a loved one pass unexpectedly. Crowdfunding is being used to cover those expenses that a traditional life insurance policy would.

Provides a Platform for Emotional Support

Crowdfunding on its own is a unique way to raise the money needed to pay for the costs of a funeral. There is also an additional benefit that is not financial in nature.

When you set up a crowdfunding campaign, you are able to reach a broad audience well beyond just family and friends. Your story can reach the eyes of many other individuals who have suffered the same tragedy.

In this, a network of emotional support is built. Visitors to your campaign have the ability to post comments, even if they don’t have the ability to donate. You may be showered with condolences that you never expected to receive. You may start a crowdfunding campaign to raise money, but what you really remember about it is the emotional support you get from it.

Being prepared for the death of a loved one is always a good idea to help deal with the costs of a funeral, burial, and unpaid debts. This is often done with things such as savings, life insurance policies, or funeral insurance. Sometimes, though, death happens unexpectedly, catching you completely off guard. In cases like these, crowdfunding can be very effective.

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