What is the payout structure of an endowment policy at age 65 with a premium payable for 20 years?

The payout structure of an endowment policy typically involves a guaranteed payout to the policyholder upon reaching a specified maturity date, which is often set when the insured reaches a certain age or after a designated period of premium payments. In this scenario, since the endowment policy has premiums payable for 20 years, it is designed to accumulate value over this period and ultimately provide a full payout upon maturation.

When the insured reaches age 65, assuming they have paid premiums regularly for the 20 years specified, they will receive the full sum assured. This payout is predetermined at the inception of the policy and is not contingent on an intermediate calculation or market conditions, making it a stable and predictable financial product.

Endowment policies are specifically structured to provide such assurances, which is why the correct answer indicates that the policy will pay out the full amount after 20 years. The other options do not align with the typical functions and promises of an endowment policy, where neither partial payouts nor variations based on market conditions are standard features.