Specialized life insurance policy . Pays the face amount plus accumulated bonus monies on a specific, fixed date, or upon the death of the insured, whichever occurs first. Additional provision for annual bonuses from the insurance companies profits. Intended for meeting special lump sum needs, like a college tuition or buying a retirement home. Typically, premiums run higher than conventional whole life policies and term insurance , but this higher payment is invested in the insurance company, which leads to the bonuses returned. Known also as endowment life policy with profits , or endowment policy with profits .
Black’s Law Online Dictionary
