Sanjeev, ULIP is designed to loot innocent people. If you do not know the truth about ULIP, go and beg on the streets. Do not cheat innocent people in the name ULIP. You are an idiot.
Most people say that the first year charges are around 70% for ULIP. I don't see mortality charges being shown here. I doubt the veracity of the numbers here. The charges are not so low. The commision for ULIP is much higher than this. What i have heard is that it is to the tune of 40% for the first year. This is why all agents i have talked to always try to talk me out of taking term plans and try to sell me ULIP policy. If the commission was really lower for ULIP, why would they push it ? Secondly, the premium for a maximizer ULIP with 45 lakhs life cover would be much higher than 30000/-. The exact premium depends on the age. Thirdly, ULIP life cover does not continue automatically beyond 3 years if the person stops paying premium. It depends on the market conditions. Fourth, the biggest reason against ULIP is that there's nothing you can do if the fund is mismanaged and provides lower returns than the general market. With mutual funds, you can shift to another fund.
To be fair there are advantages of ULIP: lower fund management charges. But when other charges are added, it exceeds that of mutual funds. Moving from equity to bond and vice versa is cheaper than with mutual funds. But we don't know if there are any hidden costs here with ULIPs.
