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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