Endowment Insurance

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Endowment insurance is similar to life insurance except the funds or “endowment” is payable to the holder or beneficiary at a specific date, not at the owner's death. The owner pays monthly installments with the confidence of receiving the certain amount later on. The device is often used as a college saving plan, but it has downsides of not accruing much interest

[Last updated in June of 2021 by the Wex Definitions Team]