Endowment Insurance (Noun)
Meaning
Life insurance for a specified amount which is payable to the insured person at the expiration of a certain period of time or to a designated beneficiary immediately upon the death of the insured.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The endowment insurance policy was taken out by the young couple to ensure their children's education would be covered in case of their untimely death.
- He purchased an endowment insurance policy that would mature in 20 years, providing him with a lump sum to fund his retirement.
- Endowment insurance is often used as a savings plan, as it provides a guaranteed payout at the end of the policy term.
- The endowment insurance policy had a critical illness rider, which allowed the policyholder to claim a portion of the payout if they were diagnosed with a serious illness.
- After her husband's passing, the endowment insurance payout helped the widow cover the mortgage and living expenses for her family.