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An endowment policy is essentially a life insurance policy which, apart from covering the life of the insured, helps the policy holder save regularly over a specific period of time so that he/she is able to get a lump sum amount on the policy maturity in case he/she survuves the policy term.This maturity amount can be used to meet various financial needs such as funding one's retirement,children's education and/or marriage or buying a house.
A life insurance endowment policy pays the fill sum assured to the beneficiaries if the insurer dies during the policy term or to the policy holder on maturity of the policy if he/she survives the term.