Received at fixed intervals during the term of the policy Whole Life Allows risk cover for whole life. Premiums payable throughout life. Received only at the time of death of life assured Term Policies Like whole life but offer risk cover for defined periods. Simply put, under with-profit policies, a bonus is declared to be added to the sum assured upon the maturity of the policies. The bonus varies from one policy to the other.
Bonus here means a share in the profits of the policyholders' pool of money.
In terms of the number of policies, endowment assurance policy scores above all other with-profit plans. These policies give the flexibility to people to have lump-sum benefits at regular intervals. So, if a person wants to plan out the educational expenses of his children or their marriage, he can do so. Premia are payable upto the term of the policy or death whichever is earlier. There are bonus additions at the end of the policy or on death.