At what age must an endowment policy endow before?

An endowment policy is designed to pay a specified sum after a certain period or upon the death of the insured, whichever occurs first. The defining feature of an endowment policy is that it will "endow" or mature at a certain age, meaning the insured will receive the face value of the policy if they are still alive when that age is reached.

In the context of life insurance, the typical endowment age can vary, but many endowment policies are structured to mature at the age of 120. This is primarily because it allows for a longer duration in which the policy can grow in value while still accounting for the increasing life expectancy of individuals. As life expectancy has increased over the years, many policies have been adjusted to reflect this change.

By setting the endowment age at 120, insurance companies are able to align their products with the longevity of the insured population and reduce the frequency of early payouts, thus allowing the policy to build cash value more effectively during its term. This makes the policy sustainable for the insurer while also providing a robust benefit for the policyholder upon reaching that mature age or in the event of earlier death.