At what point does a Whole Life policy endow?

A Whole Life policy endows when the cash value equals the death benefit. This occurs typically at a set age, often referred to as the maturity age, which is commonly around 100 years. At this point, the policy's accumulation has reached a level where the cash value and the death benefit are equal. When endowment happens, the policyholder can choose to receive the death benefit in the form of cash if they are still alive, essentially turning the policy into a savings mechanism.

Options regarding the maturity date or the insured reaching a certain age can be misleading because they do not explicitly address the condition of cash value equaling the death benefit, which is the precise trigger for endowment. Similarly, a policyholder ceasing to pay premiums does not directly lead to endowment; instead, it may result in a lapse of the policy or a reduction in death benefit depending on the terms of the contract, rather than achieving the equality between cash value and death benefit. Understanding the endowment process is crucial for anyone studying life insurance, as it underscores how Whole Life policies function both as a protective measure and as an accumulation tool.