ULIP sales have gone up quite a bit over the last year. I’m guessing most ULIPs are sold by banks because of the high commissions on these products.

While ULIPs promise the best of both worlds, that is, both investments and insurance, the reality is that they offer the worst of both worlds. They have high commissions, and most importantly, the insurance cover you get is not enough.

You are better off separating insurance and investments by investing in direct mutual funds and buying a term insurance policy. This is much cheaper as well.

If someone ever pitches you a ULIP, this Zero1 video explains why it is a bad idea.

By the way, many people don’t even realize they have a ULIP or some other terrible insurance product. If you want some help, you can try booking a free call with Ditto.