Endowment Policy
Insurance paying the face amount either at the insured's death or at a stated maturity date if the insured survives, whichever comes first. Pure endowments pay only on survival.
Drill all 803 terms as flip-card flashcards in the Exam Engine →
Practice This Concept
An endowment policy pays the face amount to the insured if the insured survives to the policy's maturity date, or to the beneficiary if the insured dies earlier. Endowment coverage is best described as:
A savings-and-protection contract that pays either at death or at a stated maturity date — An endowment policy combines life insurance protection with a savings element. If the insured dies before the endowment date, the beneficiary receives the face amount; if the insured is still living at the maturity date, the insurer pays the face amount to the insured. This either-way payment distinguishes endowments from pure term insurance, which pays only on death during the term. Because the insurer must pay at maturity even if the insured survives, the savings feature makes endowments more expensive than term coverage of the same face amount. Endowments are therefore attractive when the policyowner wants a guaranteed fund at a future date plus protection along the way.
National insurance concept
Practice all life insurance questions →