ENDOWMENT INSURANCE

Specialized life insurance policy. Pays the face amount on a specific, fixed date, or upon the death of the insured, whichever occurs first. 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. Known also as endowment life policy or endowment policy.

More On This Topic



Link to This Definition
Did you find this definition of ENDOWMENT INSURANCE helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary