What is Endowment Policy?

Legal Definition
An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death. Typical maturities are ten, fifteen or twenty years up to a certain age limit. Some policies also pay out in the case of critical illness.

Policies are typically traditional with-profits or unit-linked (including those with unitised with-profits funds).

Endowments can be cashed in early (or surrendered) and the holder then receives the surrender value which is determined by the insurance company depending on how long the policy has been running and how much has been paid into it.
-- Wikipedia
Legal Definition
In life insurance. A policy the amount of which is payable to the assured himself at the end of a fixed term of years, if he is then living, or to his heirs or a named beneficiary if he shall die sooner.
-- Black's Law Dictionary
Legal Definition
In life insurance. A policy which is payable when the insured reaches a given age, or upon his decease, if that occurs earlier. Carr v. Hamilton, 129 U. S. 252, 9 Sun. Ct. 295. 32 L. Eld. 669; State v. Orear, 144 Mo. 157, 45 S. W. 1081.
-- Black's Law Dictionary
Legal Definition
A life policy the amount of which is payable to the insured if he lives until a time stated. See 129 U. S. 232, 32 L. Ed. 669, 9 Sup. Ct. Rep. 295.
-- Ballentine's Law Dictionary