Every where there is a craze that one should not opt for ULIPs - But the real fact is that they are wonderful products provided one stays invested for long term ( At least 12 yrs). Over 3-5 yrs horizon they will be the worst bet due to the front end charges been imposed. These charges are also made so that one should not withdraw in a shorter term. Also there is a discipline that creeps in Savings as no one would like to surrender a life insurance policy & hence any long financial goal namely Retirement (or) Children's Education, etc can go thro' with out any changes. In contrast, Mutual Funds provide Liquidity right from Day-1 & there is always a temptation to withdraw it if the market is very good & a fear if the market is very bad - So thumb rule is opt for ULIPs but only if you are ready to save for long term. For short terms fianancial goals, Mutual Funds are the best & Incomparable ...
