Definition, Meaning & Synonyms
endowment-policy
noun
/ɪnˈdaʊ.mənt ˈpɒl.ɪ.si/
Definition
A financial product that combines life insurance with a savings plan, providing a payout upon maturity or in the event of the policyholder’s death.
Examples
- The investor took out an endowment policy to secure his children’s education.
- Many people choose endowment policies as a way to save for retirement.
- In some countries, endowment policies are popular for their dual purpose of life cover and savings.
Meaning
An endowment policy is designed to pay a lump sum at a specified date, often used for ensuring savings or as a form of life insurance.
Synonyms
- Life insurance plan
- Investment policy
- Life endowment
