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Wikipedia

Endowment policy

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.

Policies are typically traditional with-profits or unit-linked (including those with unitised with-profits funds).

Endowments can be cashed in early (or surrendered) and the holder then receives the surrender value which is determined by the insurance company depending on how long the policy has been running and how much has been paid into it.

Longman Dictionary of Contemporary English

endowment policy

noun
EXAMPLES FROM CORPUS
▪ By comparison, an Equitable Life 10-year endowment policy, with monthly premiums of £30, would have produced about £8,399.
▪ Popular options are repayment linked to either an endowment policy or a pension plan.
▪ So this week we highlight the key elements of a typical mortgage endowment policy statement.
▪ The other method is to take out an endowment policy in both names.
▪ This may, for instance, be in the form of an endowment policy or a mortgage payment protection plan.
Wiktionary

endowment policy

n. a life assurance savings scheme designed to pay out a lump sum when the policy matures

Usage examples of "endowment policy".

They had taken out a small endowment policy for me when I was born, and now it had matured.

The endowment policy was almost enough, and my father said he was prepared to make up the rest.

His life, however, was heavily insured in accordance with Lady Pennefather's marriage settlements, and the mortgage on the estate was in the nature of an endowment policy, and lapsed with his death.