The Law Dictionary

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Definition & Citations:

Specialized life insurance policy. Pays the face amount plus accumulated bonus monies on a specific, fixed date, or upon the death of the insured, whichever occurs first. Additional provision for annual bonuses from the insurance companies profits. Intended for meeting special lump sum needs, like a college tuition or buying a retirement home. Typically, premiums run higher than conventional whole life policies and term insurance, but this higher payment is invested in the insurance company, which leads to the bonuses returned. Known also as endowment life policy with profits, or endowment policy with profits.


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