Differences between Endowment and Whole life policy

Endowment policy Whole life policy
  • Premiums are paid for a fixed period of time.
  • Sum assured paid after expiry of the fixed period.
  • The insured can decide maturity.
  • Acts as a saving for insured or his dependant.
  • Premiums paid are higher than those paid for whole life policy.
  • Can be used as collateral security for a loan
  • Beneficiaries can earn it as a regular income
  • The surrender value is higher.
  • Premiums are paid throughout the life of the insured.
  • Sum assured paid after the death of the insured.
  • Maturity is determined by death can only benefit the dependants.
  • Premiums paid are lower.
  • Its not accepted as security for  a loan
  • The compensation is paid once.
  • Indemnity (surrender value ) is low.


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