What Does Juvenile Endowment Policy Mean?
A juvenile endowment policy is insurance bought by a parent for a child. Insurance money is awarded to the insured child once the policy matures, or a death benefit is paid to the beneficiary if the child dies before the maturity of the policy.
Insuranceopedia Explains Juvenile Endowment Policy
The age requirement varies from company to company. Some companies target this insurance to children aged zero to nine years, while other companies specify a zero to 14 year range. Some policies will cover children who are already 15 years old but the majority can only be purchased for children 14 and under.
Death before maturity is rare, but in such instances, the beneficiary (usually the parent who purchased the policy) receives a death benefit from the insurance company. The aim of the policy, however, is to provide for the child on the date that the policy matures, often with the purpose of funding a college education.