What makes ulips most unattractive for me is very few choices available in funds, no sector fund or midcap or index fund etc. Second is passive investing in equity.if Suddenly your Fund stop performing you are stuck. Third is and MOST CONCERNED is RISK or CAPITAL RISK, investment risk lies with the Customer and not the company, your returns mostly are NOT GUARANTEED type. so after 30 years of investment, Insurance company does not have a liability to pay you your investment atlist. even your premiums are not guaranteed. unlike traditional policies. That is why insurance companies can push ulips. ( I am not saying traditional policies are better, I think ulips are simple to understand, better returns and flexible than traditional.)
