3 ideas
Household money is organised into ordered compartments. Income first flows into a spending account that covers monthly expenses, then into an emergency fund held in liquid, safe instruments, then into protection through health cover and pure term life insurance. Only after these layers are in place does money go into long-term investments, so a shock never forces you to break the investments.
Endowment, money-back and similar traditional policies combine a life cover that is too small with an investment return that is too low. The bundle hides the cost of each part, so the buyer cannot compare either one against better standalone options. Buying a cheap term plan for protection and investing separately in index or simple debt funds usually gives both more cover and more wealth.
When a bank relationship manager or agent recommends a product, the recommendation often tracks what pays the seller, not what suits the buyer. Products with high, front-loaded commissions and long lock-ins are pushed hardest. Asking 'how is this person paid on this sale?' shows why complex, opaque products get sold while cheap, simple ones rarely get pitched.