endowment insurance with profits definition

endowment insurance with profits

Life insurance policy that pays the assured sum (face amount) plus bonuses accumulated over the term of the policy. The insured pays a higher-than-normal premium, which is invested in the insurance company and draws annual bonuses (out of the insurance company's profits) that are added to the assured sum and paid on maturity or upon the death of the insured. Also called endowment life policy with profits, or endowment policy with profits.

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