Insurance Glossary

Insurance Term - Endowment Insurance

An individual is given a life insurance cover just like term insurance. If the policyholder dies during this period, his/her beneficiary will get the amount he/she is insured for. Unlike a term insurance cover, if the policyholder survives, an amount will be paid to him/her on maturity of the plan. This kind of policy combines savings (because money is reimbursed on maturity) with some protection (the nominee gets an amount if he/she dies).

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