Other

I Hate GoFundMe’s, Here’s Why

By  Derek Condon

We want to be transparent about how we are compensated. Some links in articles are from our sponsors. Learn more about how we make money.

GoFundMe’s are always tough to see pop up on your social media feed. It likely means that someone you know is going through a difficult financial time in their lives. It’s usually a sign of desperation, and not sure what else to do, a last resort.

There’s a lot of silly GoFundMe’s out there. I remember the one trying to help Kanye get out of debt. But the ones I’m referring to are the unexpected deaths or life-threatening diagnoses. The ones where it’s quite literally life or death situations, where medical bills could be high or funeral costs just haven’t been saved prior to death.

The reason I hate GoFundMe’s, is because they are completely avoidable in a lot of cases.

Critical Illness Insurance

Here in Canada, it’s estimated that just under half of the population will develop a type of cancer. Statistically, you only need to be in a room with one other person and chances are one of you will develop cancer. That’s a scary fact. But a lot of people still carry around the mentality of ‘it won’t happen to me’, ‘that doesn’t happen here’, and then they are completely shocked when it does.

Cancer is never a word you want to hear, not about yourself, or anyone you know. It’s probably one of the grimmest words we have. But it’s unfortunately very common. Because of this, like a lot of things, I think it’s wise to hope for the best and plan for the worst.

Critical illness (CI) insurance provides a tax-free benefit if someone is diagnosed with life-threatening cancer, and can include up to about 24 other common illnesses. This way, if someone is diagnosed with something, they don’t have to worry about the financial impact of their diagnosis. That’s the way it should be, in times like that, money should be the last of you worry.

CI coverage can be very affordable, flexible, and customized to your unique situation. Another nice feature is that you can get a Return of Premium (ROP) feature. This means, if you stay healthy and don’t need to use the benefit, you can actually get every penny you paid for the coverage back in your pocket. It’s like having two bank accounts available to you, the benefit, and your premiums. You’ll get one of those back in your pocket.

Life Insurance

Funerals cost a lot more than a lot of people realize, and in the case that someone passes away, it can catch a lot of people off guard. Funerals can cost tens of thousands of dollars. It all depends on the religion and the burial instructions. Having life insurance in place can help cover end of life expenses and a lot more.

If you have a spouse, your lifestyle and spending start to become based on two incomes. If you have a child, children, or dependants, the need for life insurance only increases. And not having life insurance in place if you pass away can leave your surviving family in a very difficult spot financially.

Life insurance can be used for anything. It can be used for a funeral, to pay down debt or a mortgage, put towards generating income, saved for future needs like education, or anything in between. Having life insurance doesn’t create any limitations. It’s only when it’s not in place where it creates limitations.

Having some insurance in place is better than nothing, especially when things can happen or change so suddenly. It can give you peace of mind, provide financial relief, and also help your family out if something unexpected happens.

Insurance is something that we hope we never need, but if we do need it we are glad to have it.

Derek Condon

About the Author

Derek Condon

Winnipeg based Financial Advisor focusing on investments, financial planning, and mortgages. I prioritize education, because I believe the more we know, the more we all benefit. It allows me to help people make the most of their financial future. 

Disclaimer: The information in this article is not intended to encourage any lifestyle changes without careful consideration and consultation with a qualified professional. This article is for reference purposes only, is generic in nature, is not intended as individual advice and is not financial or legal advice.

Leave a Reply