1. each product ( insurance, FD, Mutual Fund) has its own strength ( see this post )
2. a hybrid product may give the best of both worlds
2a. some hybrid products are called "Link" products ( read here for varies type of insurance )
2b. if you build your own hybrid, its called Buy Term Invest The Rest
Not by conincident, 2a is usually offered by insurnace companies while 2b is usually offered by mutual fund companies. Its just a matter of approaching the same purpose from 2 different angles.
If you are in Malaysia, I would like to share with you A number : 328 !!
You can 'buy' a life insurance of MYR 328 with MYR 1 only !!
Therefore a MYR 50,000 Life insurance would cost about MYR 150 / year !!
So whatever extra cost you are paying for your insurance, you should expect them to provide you extra services and / or provide a good investment return. Else you will need to relook into your portfolio because you are paying too much for your own ignorance.
note : 328 is the number for group term life and TPD protection only, its the most fundamental and simplest element I can find in local insurance industry here.