It can be an assistance allowance, an interest-free advance, an allowance in case of decease… or scholarships granted to deserving children of members.

Short-term benefits (daily allowances in the event of illness or accident, maternity, and death)

If you or your spouse pass away at any time during this term, your beneficiaries will receive the death benefit from the policy.

which you will subsequently receive

For example, a $2 million death benefit, if invested at a 5 percent annual rate of return, would earn $100,000/year if left untouched.

If you don’t die during the term – the preferred outcome – your coverage ends when your term expires and you don’t get any money back,” Sachon says.