Is it true that insurance agents don’t want you to buy term so that they can sell more life policies for more commission?

You ask them. They are actually obligated to reveal to you the specifics of their commissions.

In my experience, most of my term policies command a higher commission percentage than whole life, but whole life policies are usually more expensive.

Sometimes you need a more expensive policy because it makes a lot of sense. Other times, you don't. And you have to keep in mind that whole life policies have so many useful features and variants that not 'investing the rest' is a very ineffiient move, let alone having any actual investment ability or experience.

I would suggest you use this as a starting point.

​

And remember - an insurance agent isn't generalized. They're human like you. Have a conversation with them and if you don't like the conversation, walk away. If you do, stick around and see how you can get a win- win.

If I have to put it objectively.

Term insurance has higher commission % on the premiums. But lower premium value.

Whole life insurance has lower commission % on the premiums, but higher premium value.

So there is some sense of truth if you are PURELY looking at the premium value.

However, it is UNFAIR to blanket assume all insurance agents are trying to do that. Some do look through and do a balance of term and whole life (and its below 10% of your take home pay). That is fair and balanced approach to planning.

Looking at Facts and Figures, if you are confident of achieving 5% returns and above, term life is the best bet.

Term life leverage the most for highest coverage. which allows you to have more dry powder for investment.

Whole life is used only if you believe you cannot beat 5% returns. (and this may change into buyers regret). But also, the older you chagne to whole life, the worse the returns become.

There is no simple answer, unless you are clear of your direction and what you want, vs what you can achieve.

Yes! Why else do you think we drive fancy cars and go on luxurious holidays? Our interest is never aligned with yours despite us saying "Your needs". It's mostly our own financial goal and sales target.

You'll have to compare across the various companies to see if you're getting the best value for a particular policy.

One easier way is to go to an independent firm (a.k.a. distributor) first. Usually, they will also have their own agenda, but at least you get them to present a few across a few companies...as compared to just an agent representing 1 company (AIA, GE, NTUC, etc.)