In an endowment policy, what benefit does the beneficiary receive if the insured dies within the endowment period?

In an endowment policy, if the insured dies within the endowment period, the beneficiary receives a death benefit. This is a defining characteristic of endowment policies, which combine elements of both life insurance and savings. The primary purpose of an endowment policy is to provide a specific amount of money (the endowment amount) at the end of the policy term, but it also includes a death benefit that ensures financial protection for beneficiaries in case the insured passes away before reaching that term.

The death benefit typically equals the face value of the policy, allowing the beneficiary to receive a predetermined amount upon the insured's death, thereby providing financial support during a critical time. This dual nature of endowment policies—providing a payout either upon death or at the end of the policy term when it matures—highlights their usefulness in planning for future financial needs or goals.