GuideUpdated Nov 2026 · 1 min read
Endowment Plan Explained
Cover and savings in one contract.
An endowment plan pays the sum assured on death during the term, or at maturity if the life insured survives. With-profit versions also add bonuses. It suits people who want savings discipline along with cover, but the premium is much higher than term insurance for the same sum assured.
Endowment vs Term
Pays on death
Endowment
Yes
Term
Yes
Pays on survival
Endowment
Yes
Term
Not normally
Premium
Endowment
Higher
Term
Lower
| Endowment | Term | |
|---|---|---|
| Pays on death | Yes | Yes |
| Pays on survival | Yes | Not normally |
| Premium | Higher | Lower |
FAQs
When does an endowment plan pay?expand_more
On death during the term, or at maturity.
Do all endowment plans get bonuses?expand_more
No. Only with-profit plans do.
bolt
Try free insurance questionsQuick practice. No signup needed.
Next steps
Create a free accountIC-02 practice is coming soon. Sign up to hear when it opens.