Taking a 3yr example doesnt serve the purpose. Talking about long term, in ULIPs although you stop paying premium allocation charges, increasing rate of mortality charges continue to be paid. Which start becoming humongous as one keeps getting older. Moreover, in ULIP, either (higher) of the fund value or sum assured is paid in case of death of the insurer. Whereas if you invest in term insurance, you get the sum assured plus the entire fund value of the amount invested separately in mutual funds.
Hence ULIP is a novel way by which insurance companies and agents are fleecing people of their hard earned money.
