The principle of investment life insurance differs from endowment. The money you give to the insurance company is invested in stocks, bonds and precious metals. The funds are divided into two parts: a guarantee fund and investment fund. The insurance company invests the first part in reliable sources of investment that will definitely bring moderate profit. The second part goes to something riskier, in this case the return is higher, but there is a chance of not getting anything at all. When your contract expires, the company will pay you the full amount plus return on investment. In case of insurance event, death of the insured for any reason, the insurance company will also pay the entire amount with interest.
Pros
Reliability: although insurance company invests money, you risk nothing.
Opportunity to get a high return: risky investments can bring a higher return than conservative instruments.
Divorce protection: funds invested under the investment insurance program are not subject to division upon divorce.
Confiscation protection: investments in life insurance programs are not subject to forfeiture by court order. Besides, they do not need to be declared.
Targeted inheritance: the agreement can be concluded in favor of any person, same as in the endowment insurance program.
The age of the insured: If in endowment insurance the upper age limit is 60 years, in investment insurance it is 80.
Cons
The payout amount is unknown. Insurance company guarantees the payment of the amount that was invested, but the amount of return on investment is not known in advance.
Longevity: the minimum contract term is five years.
Losses in case of early termination of the contract: if you decide to early terminate the agreement, the insurance company will return you not 100% of the money invested but the amount stipulated by the contract.
Source: https://www.indmoney.com/articles/insurance/life-insurance-as-an-investment
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