Insurance Companies offer two basic types of Life Insurance Policies -

01) Whole Life Insurance Policy &

02) Endowment Policy

Both of the above types have different meaning. In Layman’s language,

Whole Life Insurance Policy = Purely Life Insurance Cover & Nothing Else &

Endowment Policy = Insurance + Investments (or Savings).

What is a Whole Life Insurance Policy -

Whole of Life Insurance is a form of long term insurance. It provides a cash lump sum on death or policy maturity, whichever occurs first. As a combined investment and insurance policy it can provide protection for your family against the costs associated with terminal illness or death such as funeral expenses.
Cover is provided until the insured person reaches age 95, or upon the earlier death of the insured person.
Annual bonuses are added to the value of the sum insured each year. On maturity of the policy or death, the sum insured and the Annual Bonuses that have been added each year to the policy are paid. AMP currently also pays a Terminal Bonus when the insured person dies or the policy matures. However, Terminal bonuses are not guaranteed.

What is Endowment Policy? -

An Endowment policy offers a combined long-term investment and insurance policy. Insurance is provided until a nominated maturity age, and bonuses add value to the sum insured.
Cover is provided until the policy matures, or upon the earlier death of the insured person.
This type of policy has the advantage of providing for regular savings with protection during the chosen period and can be used for many purposes such as:

• saving for retirement

• repayment of a debt, if death occurs before the loan is repaid (for example, mortgage protection) , or

• providing funds for travel or for any future purposes which require funds (such as children's education).

In short, both of the above policies are entirely different things. And you should Invest in them according to your needs and Financial Goals.