endowment insurance
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 a monthly premium with the confidence of receiving the certain amount later on. The devise is often used as a college savings plan, but it has downsides of not accruing much interest.
[Last reviewed in October of 2025 by the Wex Definitions Team]
Wex