Definition - What does Semiendowment Insurance mean?
Semiendowment insurance is a variant of endowment insurance. Endowment insurance promises to pay a certain amount when the policyholder dies or when they survive the terms of the policy. Unlike endowment insurance, semiendowment pays only half of the amount in case of death or when the policy matures.
Insuranceopedia explains Semiendowment Insurance
The typical endowment (also called "pure endowment") pays for what you have invested or given the insurance company. The double endowment pays double the amount you have invested. Semiendowment pays only half of what you have invested.
The payout goes to the policyholder if they survives the term and to the beneficiary if the policyholder dies within the term of the policy.
Endowment insurance has some critics who claim that policyholders are better off buying life insurance instead.