Endowment Insurance

Form of Life Insurance where the face value is paid out to the insured or a beneficiary after a specified contract period. 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.

Life insurance under which an insured receives the face value of a policy if the individual survives the endowment period. If the insured does not survive, a beneficiary receives the face value of the policy. An endowment policy is the most expensive type of life insurance.