Endowment policy in insurance business is an aspect of

An endowment policy in insurance business is a type of life assurance policy. A life assurance policy is a contract between the policyholder and the insurance company where the policyholder pays a premium and the insurance company provides a lump sum payment to the policyholder's beneficiaries upon the policyholder's death. An endowment policy is a type of life assurance policy that not only provides a lump sum payment to the policyholder's beneficiaries upon death, but also provides a lump sum payment to the policyholder if they survive the policy term. This type of policy is designed to help the policyholder save for the future, and the lump sum payment can be used for a variety of purposes, such as paying for education, buying a home, or retiring.