Most of the insurance companies offer attractive commissions to their agents for Unit Linked Insurance Plans (ULIP), so many people buy ULIPs without reading the fine print as these are marketed aggressively by companies providing investor services.  However, depending on the health , age and financial status of an individual, other investment options may be more suitable.

Fortune Plus and Profit Plus from LIC

Gratuity Plus from LIC

InvestAssure Gold from Tata AIG Life 

LifeStageRP from ICICI Prudential Life Insurance

Saral Jeevan Plan from Birla Sun Life Insurance

Horizon II Pension from SBI Life

UnitGain Plus Gold from Bajaj Allianz Life Insurance

AspireLife from Bharti Axa Life Insurance

SMART Steps Unit Linked Child Plan from Max New York Insurance Company Limited

Insurance companies in India

In a  ULIP, part of  the monthly premium is used to provide insurance cover for the person and the remaining amount is invested in the stock market.  If  a person is wealthy or has no dependents,  insurance cover may not be required. At a young age (less than 30), insurance premiums are low, so purchasing a term policy may be a better option.

The overheads for  the ULIP are higher compared to a mutual fund, so the returns may be lower.  If  the ULIP units are purchased when stock market indices are low, the returns may be better than other forms of  investment.  However,  the buyer of ULIPs should also be prepared for negative returns when share prices fall.