How Do You Spell PURE ENDOWMENT POLICY?

1. A pure endowment policy refers to a type of life insurance contract that is designed to provide a lump sum payment to the policyholder at the end of a specified term, provided the policyholder is still alive. Unlike traditional life insurance policies that primarily focus on providing financial protection in the event of the policyholder's death, a pure endowment policy has no death benefit component. Instead, it is structured solely to act as a savings vehicle for the policyholder.

   In a pure endowment policy, the policyholder pays regular premium payments over a predetermined period, usually a fixed number of years. At the end of this term, if the policyholder is still alive, the policy matures and the policyholder receives the accumulated savings as a lump sum. This payout can be used for various purposes, such as retirement planning, funding education expenses, or any other financial goal the policyholder may have.

   One key feature of a pure endowment policy is that if the policyholder dies before the end of the specified term, no maturity benefit or death benefit is paid out to the policyholder's beneficiaries. This highlights the primary difference between pure endowment policies and traditional life insurance policies, which typically provide a death benefit to the policyholder's beneficiaries upon their death.

   Overall, a pure endowment policy serves as a long-term savings plan that allows individuals to build up funds over a specific period with the aim of providing a lump sum payment at maturity, assuming the policyholder survives until the end of the term.

2. One payable at the end of a specified period, but only in case the insured is living; in the event of his prior death his estate receives nothing.

   A practical medical dictionary. By Stedman, Thomas Lathrop. Published 1920.

Common Misspellings for PURE ENDOWMENT POLICY

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