A certified investment management analyst, Jake Kagele has worked in the financial services sector for more than 15 years. As the managing director of NOVA Financial Services in Tucson, AZ, Jake Kagele provides financial services for high-net-worth individuals. Besides helping his clients support foundations, he also assists in setting up endowments.

Some life insurance providers offer clients an endowment policy, which is a form of investment. In this policy, clients must put money (usually monthly) for a certain length of time, and the money is invested. The insurance will then give the client a lump sum payment after the policy term (depending on the agreement), generally between 10 and twenty-five years. The life insurance component of the policy means that if a client dies before the end of the term, a beneficiary will get the payment.

Recurring payments in endowment policies are put to two different uses. A portion of the payments goes toward a life insurance policy, while the rest is invested, generally in stocks and shares. The client may decide to receive bonuses yearly, sporadically, or after the term, if the investment is successful.