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.