Accelerative Endowment

DEFINITION of 'Accelerative Endowment'

An option in a whole life insurance policy to use accumulated dividends to convert the policy into an endowment policy prior to its normal maturity date. An endowment policy provides for a lump sum payment to the insured after a certain period.

BREAKING DOWN 'Accelerative Endowment'

An accelerative endowment is a form of an accelerated option that allows policyholders to access the value of their life insurance policies prior to death. The lump sum received can be invested any way you want or it can be used to buy an annuity policy to generate some fixed income.

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  1. How do university endowments work?

    Endowments represent money or other financial assets that are donated to universities or colleges. The sole intention of ... Read Answer >>
  2. What is a convertible insurance policy?

    A convertible insurance policy is a term usually related to life insurance. To understand a convertible policy, you must ... Read Answer >>
  3. If an individual becomes a policyholder of a variable life insurance policy and ...

    The correct answer is b. Insurance companies issuing variable life policies must allow the holders of those policies to exchange ... Read Answer >>
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    Term insurance is a type of life insurance policy that provides coverage for a certain period of time, or a specified "term" ... Read Answer >>
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