What is the term for life insurance that pays out if the insured lives to a specific age?

The correct term for life insurance that pays out if the insured lives to a specific age is an endowment policy. An endowment policy combines life insurance coverage with a savings component, allowing for a payout at the end of a specified term or upon the death of the insured, whichever occurs first. This type of policy is designed to provide a lump sum payment if the insured survives until the end of the policy term, thereby fulfilling the need for both insurance protection and savings accumulation.

In contrast, term insurance is designed to provide a death benefit only if the insured passes away during the term of the policy. Whole life insurance offers lifelong coverage with a cash value component but does not specifically tie a payout to reaching a certain age. Survivorship policies, on the other hand, are structured to pay out upon the death of the last surviving insured, catering primarily to estate planning needs rather than providing benefits for longevity. Thus, the endowment policy distinctly meets the criterion of providing a benefit when the insured reaches a predetermined age.