I'm not sure if many folks would agree with the last sentence (2nd paragraph) under "Don't overdo it". For the ULIP to be able to provide an insurance cover of 5 times an individual's salary, the premium would amount to around 35% of the the individual's annual salary. (For exmaple, someone earning 5 lakhs would be required to pay a premium close to 1.5 lakhs or more for an insurance cover of 25 lakhs (5 times). This would be very difficult for most, even though it would be good. Whereas, for insurance policy, the premium would amount to only 12-15 thousand; the catch being this amount isn't collected/compounded.
