People usually invest for the wrong motive. They get life insurance for the wrong reasons: fear, greed, pity, frustration, taxation, and so on. The true motive for purchasing a life insurance policy to safeguard your family in the event of your death is never explained!
Similarly, whether it is for child education or retirement planning, people prefer insurance to mutual funds since the former is sold on emotions while the latter is sold on logic.
It has also been observed that high-performing salespeople play on emotion rather than logic. They are aware of the client's weak point and pitch the policy accordingly. Furthermore, when people buy insurance, they feel emotionally comfortable and keep the policy for decades. When it comes to pure investments, the majority of SIPs are terminated within three years. They are not deeply attached to their investments.
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