PSI Life Exam Practice Test 2026 – Complete Preparation Resource

The primary feature of endowment policies is that they pay a benefit if the insured survives to a specified age. This characteristic distinguishes endowment policies from other types of life insurance. Unlike traditional life insurance that primarily provides a death benefit, endowment policies are designed to ensure that a sum of money is paid either upon the death of the insured within the term or if they live past a certain age (the endowment maturity age).

This feature makes endowment policies attractive for individuals who want a combination of life cover and savings element, allowing them to have financial security for their beneficiaries in the event of untimely death while also providing a maturity benefit if they reach a certain age. The focus of these policies is not solely on death benefits, but also on providing a financial payout at a pre-determined point in time, assisting in long-term financial planning and goals.