endowment insurance
A form of life insurance that pays the face value to the insured either at
the end of the contract period or upon the insured's death. This is in contrast
to life insurance, which pays the face value only in the event of the insured's
death. It is also in contrast with the concept of a pure endowment, which pays
the face value only if the insured lives to the end of the policy period. Endowment
insurance is basically a savings plan with an element of insurance designed
to protect the savings plan in the event of premature death. As such, this type
of insurance is very expensive and has limited usefulness—for example, retirement
saving, saving for the purpose of making a charitable contribution, and the
establishment of an education fund for the insured's children.