But In ulip, the premium allocation charge is NOT the only one. So just taking ULIP after checking premium allocation charge is not enough.
You also need to check monthly POLICY ADMIN charge 20 pm from HDFC to 60 for some of ICICI Upto 200 per month in METLIFE, worlds largest insurance company. Yes note that premium allocation is spread over 10 years in metlife at 6% a year, but it is still much much more than entry load in MF. Also check BID OFFER Spread.
But main charge you pay in ULIP , thouch it looks too small but actually most imp is Fund management charge. This is the charge which makes ULIP returns comparable with MFs in long term, 10 or so, because they can be as high as 2.25 % in MFs, but generally come around 1.5 to 2.0%. For FMC in ULIPs Pl do your research, check with ICICI, HDFC, METLIFE, Birla sunlife, BAJAJ CAP etc.
By the way, is there a BEST ULIP is recently banned by so called "Sleeping" IRDA for acturial funding of units, saying it is complex to understand even though high allocation ( still much less than MF)
It is like old but cheaper car that takes lot of fuel, vs new but costlier car that takes less fuel. In long term this balances, and soon you will find new car is better.
