ULIPs are still being sold as investments. The math says term insurance plus a mutual fund wins on every horizon.

A 30-year-old buying a ₹50 lakh ULIP with ₹50K/year premium is paying for insurance bundled with an opaque mutual fund. The expense ratio is 2-3% — twice a direct mutual fund — and the insurance cover is a fraction of what equivalent term insurance would provide. The alternative is brutally simple: a ₹50 lakh term plan from LIC or HDFC Life costs ₹6,000-9,000/year for a 30-year-old. Take the remaining ₹40K+ and put it in an index SIP. Over 20 years, this combination beats a ULIP by 25-40% on every back-test. The only reason ULIPs persist is the agent commission structure — which tells you whose interest is actually being served.