Which of the following best describes endowment assurance?

Endowment assurance is best described as a life insurance policy that pays out a sum of money either upon the insured's death or at the end of a predetermined term, whichever occurs first. This dual benefit is what sets endowment assurance apart from traditional life insurance policies that typically only provide a payout upon death.

When an endowment policy matures after the fixed term, the assured sum is paid out if the individual is still alive. This makes it a combination of life insurance and a savings plan, as it encourages individuals to save for future financial goals while also providing a safety net for beneficiaries in the event of untimely death.

In contrast, other options describe different types of financial products. For instance, a policy that "only pays out upon death" does not encompass the savings aspect or the maturity payment upon surviving the fixed term. Describing it as "a type of savings account" overlooks the insurance component, and stating it as "temporary insurance cover" implies a limited duration without providing the endowment benefit. Thus, the definition of endowment assurance directly aligns with the correct answer, showcasing its dual nature of both insurance and savings.