The current understanding of Unit Linked Insurance Plans (ULIPs) is nothing but a concoction of various myths surrounding them. And the misconceptions about ULIPs are the result of rampant mis-selling of these products in the past, when high commissions were available for those distributing them in initial years.
Even today, among all the investment opportunities that people take into consideration, the idea of buying a ULIP ranks low, owing to the continued misunderstanding about the product’s purpose, pricing, returns, ease of liquidity and mode of functioning.