Final Answer:
The maturity value of the 20-Year Endowment insurance policy purchased by TES, a 50-year-old male at the age of 40 with a face value of $85,000, would be the sum assured of $85,000 payable at the end of the policy's term, provided that all premiums have been duly paid.
Step-by-step explanation:
TES bought a 20-Year Endowment insurance policy at 40 with a face value of $85,000. Endowment policies typically offer a lump sum payout at maturity, which in this case is after 20 years. The face value of $85,000 is the amount payable upon the policy's maturity if TES survives the entire policy term and has paid all premiums. There are no accrued bonuses or interest mentioned, so the maturity amount remains at the policy's face value.
Mathematically, the policy's maturity value remains constant at $85,000. The policyholder pays premiums regularly over the 20-year period, and upon the policy's maturity, assuming all payments are made as required and the policyholder survives the term, the insurer disburses the face value. This kind of policy serves as a savings and insurance hybrid, providing a lump sum at maturity, offering a financial cushion or retirement benefit for the policyholder.
In conclusion, the 20-Year Endowment policy's maturity value for TES would be the guaranteed face value of $85,000. This type of policy ensures a fixed payout at the end of the specified term, promoting savings and financial security for the policyholder at maturity, given they fulfill the premium payment requirements and survive the policy's duration.