Why Are Endowment Contracts Not Considered Life Insurance? 
That is an excellent question ! They are like wheat and white bread - both bread , but different kinds , and with different benefits for you . A whole life policy will generate a cash value slowly , and generally reach the point where the face value and the cash value match -LRB- or endow -RRB- at the age of 100 , or 120 in most policies . Most people will receive their death benefit before the policy would endow . An endowment policy/contract is designed to endow much more quickly - generally in either a 20 year period , or at the age of 65 . The premiums therefore are much higher than a traditional life policy . The idea here is that if you were to pass within the first few years , you would receive a big payout for few dollars , but the flip side is that you would receive an almost even payout if you were to die later in the contract . So why do it ? These policies typically pay a higher interest rate on the cash value savings building up in them than the traditional , slower policies do , and that is about the only reason . They were popular once , but have faded as a rule from popularity . Thanks for asking ! 