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Simple English definitions for legal terms
endowment life insurance
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A quick definition of endowment life insurance:
Endowment life insurance is a type of life insurance that pays out either to the insured person at the end of the policy period or to their beneficiary if the insured person dies before the period ends. It's like a savings plan and insurance policy combined. If the insured person lives until the end of the policy period, they receive a lump sum payment. If they die before the end of the period, their beneficiary receives the payment instead.A more thorough explanation:
Endowment life insurance is a type of life insurance that pays out either to the insured or their beneficiary at the end of the policy period or if the insured dies before the period ends. It is also known as endowment insurance.
For example, if someone purchases a 20-year endowment life insurance policy and lives until the end of the 20 years, they will receive a payout. If they die before the 20 years are up, their beneficiary will receive the payout.
Endowment life insurance is different from other types of life insurance, such as term life insurance, which only pays out if the insured dies during the policy term.