What is a key characteristic of endowment life insurance?

Endowment life insurance is distinguished primarily by its ability to accumulate cash value over time. This type of insurance is designed to provide a benefit either upon the death of the insured within a specified period or if the insured survives to the end of the policy term, at which point the cash value is paid out. Unlike term life insurance, which provides coverage for a set period without accumulating cash value, endowment policies are more investment-oriented, allowing policyholders to build savings as well as providing life coverage.

The other characteristics mentioned do not accurately capture the essence of endowment life insurance. For instance, it does not typically cover multiple lives in one policy, nor does it offer a fixed death benefit only; rather, the death benefit is contingent on whether the insured dies within the term or reaches the end of the policy. Additionally, endowment policies are generally more costly than term life insurance due to the cash value component and the dual benefits they provide. This unique blend of insurance and investment is what makes the accumulation of cash value a key characteristic of endowment life insurance.