Glossary
Endowment policy
An endowment policy is a life insurance product that combines protection with savings, paying a lump sum either on death or at the end of a fixed term.
Endowment policy explained
With an endowment, the policyholder pays premiums for a set period, for example 15 years. If the life assured dies during the term, the sum assured is paid to the beneficiaries. If they survive to the end of the term, the policy matures and the sum assured, often plus bonuses, is paid to the policyholder.
Endowments are commonly used to save for a goal with a known date, such as children's education or a house deposit, while keeping life cover in place. Because they include savings, they usually have a surrender value if cancelled early, though it may be low in the first years.
Why it matters in life insurance
Endowment and education plans are popular long-term products in Zambia and need careful tracking of maturity dates, bonuses and surrender values over many years. Ontech LifeI ERP schedules maturities, allocates declared bonuses and calculates surrender values for endowment business.