Explain briefly endowment insurance.

1.	Explain briefly endowment insurance.
Answer» Endowment insurance: An insurance in which the insurance company promises to pay the policy amount to the insuree at the end of policy period i.e. on maturity of policy or to his legal heir is known as endowment insurance. In this type of policy, the insuree decides to insure himself not for whole life but only for a specific number of years. The insuree pays the premium decided by the insurance company upto the decided period for example, upto the age of 50 years. Once the insuree reaches the age of 50 years the policy matures and the insuree receives the amount of his policy. In case the insuree dies before the set period of policy, his heir receives the policy amount.

Answer»

Endowment insurance:

An insurance in which the insurance company promises to pay the policy amount to the insuree at the end of policy period i.e. on maturity of policy or to his legal heir is known as endowment insurance.
In this type of policy, the insuree decides to insure himself not for whole life but only for a specific number of years. The insuree pays the premium decided by the insurance company upto the decided period for example, upto the age of 50 years.
Once the insuree reaches the age of 50 years the policy matures and the insuree receives the amount of his policy. In case the insuree dies before the set period of policy, his heir receives the policy amount.

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