Which life policy pays the face amount at the end of the specified period if the insured is still alive?

• A. Whole life
• B. Universal life
• C. Endowment Policy
• D. Term life

Answer: (C)

Endowment policies are designed to pay the face amount if the insured survives to the end of the specified period. This type of policy combines life coverage with a savings feature: you pay premiums, and if you reach the maturity date, you receive the face amount. If the insured dies before that date, the policy pays a death benefit to beneficiaries, rather than the maturity amount.

This distinguishes it from term life, which pays only if death occurs during the term; from whole life, which provides a lifetime death benefit and typically builds cash value but doesn’t have a guaranteed payout at a specific future date simply for surviving; and from universal life, which offers flexible premiums and cash value but not a guaranteed face-amount payout at the end of a term based solely on survival.