Life Insurance Policy Endowment

Put simply, it’s a life insurance policy that doubles as an investment or a savings account. It pays a lump sum after a specified number of years or upon death. Each month you put a set amount of money into an account, and a specific portion of that money is used to buy life insurance.. Endowment policy/plan is a life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death. Know the meaning of Endowment in insurance.. An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death. Typical maturities are ten, fifteen or twenty years up to a certain age limit. Some policies also pay out in the case of critical illness.. With endowment insurance, as with term life insurance, the focus is on the length of the policy's terms, usually 10 to 20 years. If the insured dies before the endowment's maturity, the policy's face value — also known as the "death benefit" — is paid in a lump sum to any beneficiaries..

Endowment policies state when the contract endows in the name of the policy. For instance, if a policy is a 20-year endowment, the contract ends and the insured receives the face amount after 20 years. An endowment at age 65 pays the owner the money when the insured reaches 65.. A life insurance endowment policy pays the full sum assured to the beneficiaries if the insured dies during the policy term or to the policy holder on maturity of the policy..

An endowment policy is an investment product that you buy from a life assurance company. They are set up as regular savings plans and at the end of a set period pay out a lump sum. The policy includes life assurance, so it will also pay out if you die during the term.. Endowment policy is a type of Life insurance policy. It covers the life insured for a specific period of time. It covers the life insured for a specific period of time. If the Life insured survives till the end of that specified period (maturity period), he will be paid the lump sum assured along with bonuses (if any) by the Insurance Company..