It determines how long it takes for the endowment plan to mature. A short-term plan typically matures after two or three years, while a long-term plan may take up to 25 years.
A fixed payment schedule shows how much you'll be required to pay over a specified period of time. Payments can be made in the form of a lump sum at the beginning of the policy term or smaller payments made on a monthly, quarterly or yearly basis, depending on your insurer.
Payout upon maturity
If the projections are met and the plan matures, this is how much you will receive after paying premiums for the whole term.
You will not receive any bonuses or cash dividends if you participate in a non-participating plan. Your payout will more or less be a fixed amount.
Your insurer will invest your premiums in a participating fund to generate returns. This allows you to receive non-guaranteed returns in the form of cash dividends and bonuses in addition to the payout upon maturity.