Life insurance comes in different forms to suit different situations. Some people prefer to obtain a term life insurance policy if they are covering a short-term bank note, such as a car note. These types of policies have no cash value and expire at the end of the note. They are designed to cover the outstanding balance should something happen to the responsible party on the note. The policy will cover the bank note, which allows the family to be relieved of the debt. In the case of a mortgage or a car, this term life policy will pay off the loan and give the family a title or deed that is free and clear to the property.
If a policy has a cash value, it is likely a whole life policy. These policies have a higher premium, but they also earn interest and can be borrowed against. Someone who has a whole life policy will eventually reach a maturity date where no more premiums will be paid, but the death benefit will not go down.
If it is borrowed against, the money must be paid back or the money owed will be deducted from the proceeds upon the death of the insured. GIO life insurance policies include whole life, term life and accidental injury benefits. Accidental injury policies pay for loss of limb, burns or other damage to the body. This type of policy is designed to compensate for a loss in wages or the expense of assistance while in recuperation.
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