From Longman Business Dictionaryendowment mortgageenˈdowment ˌmortgageFINANCEINSURANCE a mortgage where the borrower pays only the interest on the loan, and repays the loan itself in one payment at the end of the period of the loan with a sum built up in a LIFE INSURANCE policy. If the borrower dies during the period of the loan, the life insurance policy can be used to pay off the whole loanAn endowment mortgage gives life cover automatically, whereas repayment loans need separate cover. → mortgage
