Well, you’ve basically summed it up for yourself, haven’t you?
Insure the risk (if) you have to.
Invest the rest as efficiently as you can.
I think the bundling/combination of investment and insurance products is routinely a ploy to trick you into buying a very costly (and/or just plain shitty) investment, by a combination of (among other tricks):
- trying to make it look as if you could get insurance coverage “for free”, since you’ll be “getting back the money that you paid in” - by hiding and ignoring the opportunity costs.
- obfuscating costs and returns by complex legal terms and contracts
- “locking you in” to the investment over the long term