An endowment policy is one which secures a capital sum payable if the insured is still alive at the end of a specified period, or on his earlier death or disability. A policy is also an endowment policy if it prescribes that a capital sum will only be payable if the insured dies after a specified age which is not to exceed 16.

Such a policy will be a qualifying policy if it satisfies the conditions set out below:

(1)the term must end ten years or more from the making of the insurance;

(2)premiums must be payable at yearly or shorter intervals:

(a)until the end of the term or earlier death or disability; or

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