Final answer:
An endowment policy pays out a lump sum based on specific terms, distinct from other types of insurance like term insurance and annuities.
Explanation:
An endowment policy best describes the situation where the policy matures and pays the face amount if the insured lives to a specified date. An endowment policy is a type of life insurance that pays out a lump sum after a specific term or on the death of the insured, whichever occurs first. This differs from term insurance, which pays only if the insured dies within the defined period, and annuities that provide scheduled payments during the lifetime of the individual.
Learn more about Endowment policy as a type of life insurance here:
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