A few weeks ago, I saw someone post in a group that their friend had passed away unexpectedly. He left behind his wife and two children and a major financial gap. In an effort to help, the friend created a GoFundMe page so others could donate.
I’ve seen this scenario too many times. While these campaigns are heartfelt, the reality is sobering: most raise just a few thousand dollars. That may cover a month or two of expenses, but it doesn’t replace a steady paycheck or provide long-term financial stability. Sadly, I think we’ve all come across these campaigns more than once. Each time, it breaks my heart—because while we cannot control when our time will come, we can control whether our loved ones are protected if it happens.
That’s exactly why life insurance exists.
If you don’t yet have the coverage you need, there’s no better time to get it. Life insurance isn’t just about a policy—it’s about peace of mind, knowing that your family won’t have to rely on online donations or financial miracles if the worst happens.
What’s the right choice?
People often debate about which type of life insurance is best. Some will insist you should “buy term and invest the difference.” Others will argue that whole life insurance is the ultimate solution. The truth is simpler: insurance is a tool. The right tool depends on your situation, your goals, and your family’s needs. A financial advisor can help you sort through the options and make the choice that fits you best.
Term Insurance
Term life insurance is exactly what it sounds like: coverage for a set period, often 10, 20, or 30 years. You pick an amount of coverage that matches your family’s needs, and as long as you pay the premiums, the policy remains in force.
Think of it like car or home insurance—we hope we never need it, but it’s there in case the unexpected happens. Term insurance is especially valuable during years when you have young children, a mortgage, or other financial responsibilities that would be difficult for your family to carry on their own.
Permanent Insurance
Unlike term, permanent insurance has no expiration date. It’s designed to cover you for life. While some people feel they won’t need insurance once their children are grown or their mortgage is paid off, permanent policies can still provide valuable benefits. One example is the cash value feature. Over time, the policy builds cash value. In retirement, this becomes even more powerful: if the market is down, I can tap into my policy instead of withdrawing from investments at a loss.
Permanent life insurance can also help in other situations: blended families, charitable giving, protecting a business partner, or leaving a legacy.
What about work insurance?
Many people tell me, “I have life insurance through my job.” While that’s a great benefit, the coverage is usually limited, and more importantly, it’s often not portable. If you change jobs, retire, or are laid off, your coverage may disappear. It’s best to treat workplace insurance as a bonus—not your family’s only safety net.
What’s holding you back?
About 44% of U.S. households would face financial hardship within six months if the primary wage earner passed away—and 28% would struggle in just one month. Yet, nearly half of adults don’t have life insurance. The gap is real, and the consequences can be devastating.
None of us want to think about dying, but the reality is that life is fragile. GoFundMe is not a financial plan—it’s a last resort. If you love your family, protect them with something stronger.
If you’ve been waiting for a sign, this is it. Reach out to me today, and let’s talk about the right life insurance solution for you. Together, we can make sure your loved ones are cared for—no matter what tomorrow brings.
Disclaimer: This article is for informational purposes only and is not tax, legal or financial advice. Everyone’s situation is different, so consult a financial advisor. If you would like to connect with me, please call 615-619-6919 or email me at smoran@redbarnfinancial.com You can learn more at redbarnfinancial.com
Investment advisory services offered through Hornor, Townsend & Kent, LLC (HTK), Registered Investment Adviser, Member SIPC, 800-873-7637, www.htk.com. Red Barn Financial is unaffiliated with HTK. HTK does not offer tax or legal advice. Always consult a qualified adviser regarding your individual circumstances.
The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure you are insurable. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges; if a policy is surrendered prematurely, there may be surrender charges and income tax implications. Any guarantees are contingent on the financial strength and claims-paying ability of the issuing insurance company.
Life insurance permanent policies contain exclusions, limitations, reductions of benefits and terms for keeping them in force. Accessing cash values may result in surrender fees and charges, may require additional premium payments to maintain coverage, and will reduce the death benefit and policy values. Loans are income tax free as long as policy is not a “modified endowment contract” (MEC) and policy must not be surrendered, lapsed, or otherwise terminated during the lifetime of the insured, and withdrawals must not exceed cost basis. Partial withdrawals during the first 15 policy years are subject to additional rules and may be taxable. Excess policy loans can result in termination of a policy. A policy that lapses or is surrendered can potentially result in tax consequences. You should consult a qualified tax professional for tax advice on your own personal situation. All guarantees are based upon the claims-paying ability of the issuer.