Curly,
In general it's better to buy insurance for your insurance needs and have a
separate savings plan for savings. Not only is it easier to see how you're doing and what you're paying for but the combo's usually cost you more or underperforms.
Coolgirl,
By playing it too safe you can actually lose out in the long term. Say you invested $1,000 at 3% interest per annum in your time deposit and kept it there for 10 years. By the end of the time you'd have $1,340.
Now if you had invested it and got a 10% pa return (that's a pretty average figure for how the S&P 500 has been performing over a 10 year period and that doesn't include dividends), then after 10 years you would have $2,590. That's almost DOUBLE the time deposit amount!
You'd have to wait an extra 22 years before your time deposit reaches the same amount. Or, of course, you could just save twice as hard as the person who invests their money. 
These have massive effects on your retirement due the number of years you can get compound interest for. Keep your money too safe and you're still working to retirement because you have to. Invest your money wisely now and you could retire richer and earlier and do what you want with your time.
The answer's pretty clear in my eyes.