What
is an Endowment Policy ?
Here's one definition ...
An
endowment policy is a regular savings or investment plan combined with
life insurance in a single policy. If the owner dies before the policy
reaches maturity, the endowment policy life insurance company pays out
a specified amount of money.
Most people takes it out to
complement their retirement savings and to allow them to pay off their
mortgage faster using a lump sum payment by either cashing it
in,
selling it or surrendering it before or during maturity.
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