What type of insurance is generally used for children's education and other future needs?

Endowment insurance is specifically designed to provide a lump sum payment after a specified term or upon the insured's death. This type of policy is ideal for saving towards future financial goals, such as funding a child's education or other significant expenses.

The structure of endowment insurance combines a savings component with a life insurance benefit. This means that if the insured survives the term, they receive the predetermined amount, which can be used for purposes like education costs. Additionally, if the insured passes away before the end of the policy term, the beneficiaries receive the sum, providing financial protection.

While term life insurance is focused on providing coverage for a set period and does not offer a return on investment, whole life insurance provides lifelong coverage and builds cash value, but it typically has a more significant cost. Universal life insurance offers flexible premiums and death benefits but may not be specifically structured for education savings. Thus, the features of endowment insurance align most closely with the goal of preparing for future educational expenses.