YOU ASK:

What is the definition of Pure Endowment?

WE ANSWER:

A Pure Endowment is a life insurance product that provides a regular income as long as the insured lives. It can also refer to an insurance product that pays an amount equal to the face value if the insured person is living at the date the payment is due. A pure endowment is a less popular insurance product, with only a few, if any, sold at the present.

This is because there is still an element of risk that the insured person will die before the maturity period. If that person dies before the payment is due, the beneficiaries stand to receive nothing.

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