An endowment life insurance policy is one in which the cash value grows until it reaches the face amount for which the policy was taken out. When the cash value reaches the original face amount, is is said to endow. At that time you can take the cash value while you are still alive, or leave the cash value in the policy to possibly grow more.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Endowment is the basic form of permanent insurance. In contrast with term insurance which provides protection for a specified period of time, an Endowment will pay a death benefit when the insured dies if premiums are paid.
A "whole life" policy is an endowment policy with the endowment occurring beyond normal life expectancy. Endowment policies were quite poplular one hundered years ago when life expectancy was lower.
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A "whole life" policy is an endowment policy with the endowment occurring beyond normal life expectancy. Endowment policies were quite poplular one hundered years ago when life expectancy was lower.