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Glossary

From A to Z, discover clear and concise explanations of key terms, empowering you to make informed decisions in the dynamic world of finance with our comprehensive glossary.

An Endowment Policy is a type of life insurance that has a value that is payable to the insured if he/she is still living on the policy's maturity date, or to a beneficiary otherwise. They are normally "with profits policies". If the insured does not wish to wait until maturity to receive the value they can either surrender it back to the issuing insurance company, or they can sell the policy on the open market. If the policy is sold it then becomes a Traded Endowment Policy or TEP.