Buy the simple, good value product

If you go into the shop to buy product A for $1,000. There is another product B which is similar to A, but it cost $1,500 and gives additional items worth $300. Do you prefer product A or B?

Some life insurance products are designed to be like product B. It charges a higher premium and gives you frills that are worth less than the additional premium. But the customer is not able to know the value of the frills. The sales agent sells the enhanced product, because they can earn a higher commission. The enhanced product gives poorer value to the customer due to the higher marketing cost.

Lesson: Go for the standard products that can be compared easily. You can get better value due to competition. If you buy a complicated product, you are likely to be over-charged.