Seems like it has almost become a standard practice to set up a "GoFundMe" for a family, after a parent / spouse unexpectedly, and tragically dies. Usually, it is premised with the need to help the family during their difficult time, and to cover funeral expenses. That the family undoubtedly needs financial help.

But, sometimes I wonder if it is necessary. I mean, what if the family planned for such a tragedy, and has life insurance? Don't most people have life insurance?

Is doing this mostly just a kind gesture to let the family know they are loved? Or is there that many people that have ZERO life insurance, and have no means to cover their expenses associated with such a tragedy?