6 min read
Term insurance is pure protection; a ULIP bundles insurance with investment. They solve different problems.
| Factor | Term | ULIP |
|---|---|---|
| Primary purpose | Protection | Insurance + investing |
| Cover for the cost | Very high | Low |
| Charges | Minimal | Multiple charges |
| Returns | None (pure cover) | Market-linked |
| Best for | Everyone with dependents | Niche cases |
Verdict
Buy term insurance for cover and invest the difference in mutual funds. ULIPs rarely beat that combination on cost.
Sources
Reviewed against primary sources. Rates and rules change — confirm current figures with the official source before acting.
Run the numbers for your situation.
Open the calculators