CrowdFunding

Crowdfunding is one of the latest buzz words and activities of the millennial generation.  Crowdfunding is just how it sounds; many people get together with small amounts of money for a common cause – whether that cause be to get a band to record an album, an inventor to be able to produce his/her invention, or, my favorite, a vintner to be able to get his wine to market.  Millennials have brought back the popularity of crowdfunding.  But something that millennials are not comfortable with is life insurance.

In fact, according to LifeHealthPro, 34% of millennials are uninsured. (http://www.lifehealthpro.com/2015/03/09/34-of-millennials-still-uninsured-infographic)

Since they believe in crowdfunding, how can that be?  My belief is life insurance is one of the original forms of crowdfunding.  Or taking it one step further, insurance as a whole could be characterized as crowdfunding.  An insurance carrier passes a bucket around to a large group of people where each person puts in a little bit, and when the time comes for a claim that person or their beneficiary gets to reach into the bucket to pay for the claim.  The bucket then keeps getting passed around.

Now before people start yelling at me and saying that insurance companies are getting rich by doing this, I would have to answer yes they are.  But I would also challenge you with this question: Where else can you give someone (or a company) $30.00 and the next week when you pass away in an accident can your spouse / children get $500,000 in proceeds?  If there is another spot that has a better deal than insurance, please let me know.  Keep in mind this is guaranteed, not some sort of pie in the sky.

Wouldn’t you have to agree that even if you had to pay $50,000 this month but next month you could collect $500,000 in the event of an accident this is still a good deal?  I, don’t know where else I could get that guaranteed, but maybe you’re smarter than me.

Still, don’t think you need a life or disability insurance?  When people don’t get life insurance or disability insurance and something happens, their friends and family do another form of crowdfunding…it’s called spaghetti dinner fundraisers.  $500,000 is a lot of spaghetti!!!

When is the best time to get insurance?  While you are still insurable.  You are born and then you die – somewhere in between you become uninsurable.  The bad thing is, we don’t know when that date occurs!  So the best time to get it is now before an accident happens.