An endowment policy is a life insurance contract designed to pay a lump sum after a specified 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.
Read more about Endowment Policy: Traditional With Profits Endowments, Unit-linked Endowment, Full Endowments, Low Cost Endowment (LCE), Traded Endowments, Modified Endowments (U.S.)
Famous quotes containing the words endowment and/or policy:
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