Endowment Insurance Law and Legal Definition

Endowment insurance is a life insurance policy that pays an assured sum on a fixed date or upon the death of the insured, whichever is earlier. For example, an endowment policy that provides benefits for 20 years until the insured is 65 pays its face value after 20 years whether the insured lives or dies. Further, endowment policies carry premiums higher than those on conventional whole life policies and term insurance. Endowment insurance is also known as endowment life policy or endowment policy.