Are Endowment insurance policies a good idea?

Q.

We have a four month old baby and his grandparents are keen for us to buy an endowment insurance policy for him which would have the dual benefit of maturing at a certain age (e.g. 21 years) to provide savings, as well as providing life/permanent and temporary disability/injury coverage. We are not sure where to start looking. Are these products worthwhile, or are we better off putting money into a managed fund/savings plan, plus pay for a separate whole-of life insurance plan for bub?

I am not keen on an endowment insurance policy because in the past there have been problems both with the rate of return and with access when the child is 21. I believe a better option is a share based insurance bond which works in a similar way but which can be accessed at any time and can also be transferred free of capital gains tax to the child at an appropriate time. Any financial advisor should be able to point you in the right direction.