What is the definition of Endowment Insurance?
An Endowment Insurance is a kind of life insurance policy that pays a benefit when the insured person dies or when the policy matures at a specified date (usually regardless of whether the insured person is alive at that date or not). If the insured person dies within the coverage of the endowment insurance, the beneficiary is the one who stands to gain the proceeds.
Endowment insurance is usually used to fund retirements or educational funds. As such, this kind of insurance is one of the expensive kinds in life insurance policies.
The endowment is usually designed to mature within 10 to 30 years. For some companies, though, this can be customized based on the needs of the proposed insured. However, the general rule is that the longer the maturity date, the less expensive the premiums will be.
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