Endowment: An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its ‘maturity’). The policy also allows for a beneficiary to receive the specified amount of cash in the event of death of the insured, prior to the endowment date. This type of plan is typically used towards saving for college funds or retirement.

Endowments payable at age 18 and 20 are specifically designed for children’s education. Parents and legal guardians are encouraged to purchase these plans to ensure that cash is on hand for continued education.

Endowments with maturity at 20 and 30 years (up to age 65 years) are designed for persons saving up for a specific project, but are also attractive for retirement.