Advertisement

Accelerative Endowment

What Does Accelerative Endowment Mean?

An acceleration endowment is a method of arranging the dividends of a life insurance policy to essentially convert it into an endowment policy. Over time the dividends build up, and the policy allows for the insured to collect a lump sum after a certain amount of time before the policy would normally mature.

Advertisement

Insuranceopedia Explains Accelerative Endowment

The main benefit of accelerative endowments is that they give the insured the option to receive a lump sum of money before their death. This is different from other life insurance options that only provide benefits upon the death of the insured. The lump sum allows the insured to make more investments or later earn a fixed income through the purchase an annuity policy. Of course, the insured can also simply keep and use the money as preferred.

Advertisement

Share this Term

  • Facebook
  • LinkedIn
  • Twitter

Related Reading

Tags

InsuranceLife InsurancePersonal Lines

Trending Articles

Go back to top