| Similar to Term life insurance, Endowment | | | | your premiums will be. |
| insurance is also designed to cover the insured | | | | Endowment policies build cash value much faster |
| person for a specific period of time, however, | | | | than Whole Life policies do because you're paying |
| that's what the similarities end. Endowment is | | | | your premiums out in a shorter period of time. |
| more similar to Whole Life insurance except that | | | | During the period of coverage the insurance |
| an Endowment policy matures faster than Whole | | | | company will pay the beneficiary of the policy the |
| Life does. | | | | face value in the event of the death of the |
| An Endowment policy lasts for a specific period of | | | | person insured. If that person does not die during |
| time, for example, a 20 Year Endowment or an | | | | the specified period of the Endowment, then the |
| Endowment at 60 years. All that this means is | | | | owner of the policy will receive the face value |
| that the policy will be paid off in that time frame. | | | | when the policy reaches maturity. The cash value |
| In a 20-year Endowment all of your premiums | | | | and face value will both equal the same amount |
| would be paid off in 20 years. In an endowment | | | | when the policy matures. |
| at 60 you only pay life insurance premiums until | | | | The main purpose of owning an Endowment |
| you're 60 years old, at which time your policy | | | | policy is so you can acquire a rapid buildup of |
| would be paid up in full. This makes Endowment | | | | funds over a short period of time. These funds |
| much more expensive than regular Whole life | | | | can be used for any purpose needed. Endowment |
| insurance because you're taking an entire lifetime | | | | policies are not nearly as popular as they used to |
| of premiums and compacting them into a short | | | | be. |
| period of time. The shorter the period, the higher | | | | |