Endowment Policy
A type of life insurance policy that pays a lump sum to the policyholder on a specific maturity date or to the beneficiary if the insured dies before that date. These policies often have a savings component.
Detailed Explanation
Endowment policies were more common in the past and are less prevalent today.
Practical Example
Sarah's grandfather had an endowment policy that matured when she turned 18. The policy paid out a lump sum of money that helped her pay for her college education.
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