Q.Ravi buys a life insurance policy for a 20-year term. The policy pays the full sum assured to his family if he dies at any point within the 20 years, but if he is alive at the end of the 20 years, it pays him the same sum assured directly, along with any bonus earned. Which type of life insurance policy has Ravi bought, and why?

Paying the sum assured on death within the term, or to Ravi himself on surviving the full term, is exactly the structure of an endowment policy.

Check the two conditions in the fact pattern against each life policy type's own death/survival and fixed-term/whole-life structure.

Step 1 — Identify the key facts. The policy has a FIXED term of 20 years. It pays the sum assured to Ravi's family if he dies WITHIN that term, and pays the same sum assured (plus bonus) to Ravi HIMSELF if he survives to the end of the term.

Step 2 — Compare against Term Insurance. Term Insurance pays only on death within the term, with no benefit at all if the insured survives — this does not match, since Ravi's policy also pays on survival.

Step 3 — Compare against a Whole Life policy. A Whole Life policy has no fixed term and pays only on death, whenever it occurs — this does not match either, since Ravi's policy has a fixed 20-year term and also pays on survival within that term.

Step 4 — Compare against an Endowment Policy. An Endowment Policy is for a fixed term and pays the sum assured on death within the term OR on survival to the end of the term, whichever occurs first — this exactly matches every fact given.

Step 5 — Conclusion. Ravi has bought an Endowment Policy, since his policy has both the fixed term and the death-or-survival payment structure that specifically defines this type, unlike Term Insurance (death-only) or a Whole Life policy (no fixed term).