Bank Sponsored Savings / Life Insurance Programs ?

[Manassas]

My wife is looking at putting some of her savings in one of these bank sponsored (SCB) programs whereby you make fixed deposits over 6 years and it matures in 15 years. The annual rate works out to about 5.8% and is supposedly tax free. It also has a life insurance payout. I crunched the numbers and its not great, but ok. It's money she says she doesn't need access to and wants the insurance for family purposes.

Has anybody looked at these more closely? The bank officers really push these and I'm guessing there's a commission involved. I'm sure it's been discussed before but couldn't find a thread on this,

[Pib]

Just your description in your first three sentences makes it sound like a whole life insurance policy, which are arguably not known to be great investments considering all the other investments vehicles and insurance policies available...but whole life insurance policies/investments do provide good commissions for the rep/company selling them.

[yoshiwara]

If she wants life insurance then take out a separate and independent life insurance policy.

[aurelius]

Anyone selling insurance is getting commission. Ask for the IRR for each product you consider and make your own judgement (its a legal requirement that they disclose the IRR). shorter terms generally have lower IRR's.