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endowment policy

The definition of an endowment policy is an insurance policy where the policyholder receives money after a certain timeframe or his or her beneficiaries receive the money if he or she passes away during the timeframe.

(noun)

An example of an endowment policy is one in which a charity receives a man's money a year after the man passes away.

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See endowment policy in Webster's New World College Dictionary

an insurance policy by which a stated amount is paid to the insured after the period of time specified in the contract, or to the beneficiaries in case the insured dies within the time specified

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