endowment insurance

Thân thiện

A young couple receives an endowment insurance payout for their child's college fund.

Definition

1. Noun:
   • A type of life insurance policy: Endowment insurance is a specific category of life insurance contract. It guarantees a payout of a predetermined sum of money.
   • Payout upon survival or death: The defining feature is that this payout is made either when the insured person outlives a specified term or immediately upon the insured's death if it occurs within that term. The beneficiary is designated in the policy.

Usage Examples

• Noun:
  • He purchased an endowment insurance policy to mature when his child turns 18, funding future education costs.
  • The key benefit of her endowment insurance is that it will pay out whether she lives to see the term end or not.
  • Comparing term life and endowment insurance, the latter combines protection with a forced savings element.

Advanced Usage

• "to mature": An endowment insurance policy is said to mature when the specified term ends and the insured person is still alive, triggering the payout.
  • His twenty-year endowment insurance will mature next year, providing a lump sum for his retirement.
• "with-profits endowment": A specific variant where the payout includes a share of the insurance company's profits or investment returns.
  • Many older with-profits endowment insurance policies failed to meet their projected payout targets.

Variants and Related Words

• Endowment policy (n): A fully synonymous term for endowment insurance.
  • She reviewed the details of her endowment policy.
• Endowment plan (n): Another common synonym, often used interchangeably.
  • They were sold an endowment plan linked to their mortgage.

Synonyms

• Savings-linked life insurance: Highlights the combined protection and savings component.
• Maturity-assured life insurance: Emphasizes the guaranteed payout at the end of the term if the insured survives.

Related Phrases

• Endowment mortgage (n): A historical financial arrangement where a repayment mortgage was coupled with an endowment insurance policy intended to pay off the loan at maturity.
  • Endowment mortgages were popular in the late 20th century but carried significant risk.

Học thuật

Noun

1. 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