Few financial products in India attract as much scepticism as the ULIP plan. Often dismissed as “expensive mutual funds with insurance attached,” ULIPs tend to trigger strong reactions, especially from investors who prioritise transparency and cost efficiency.

Some of this scepticism is understandable. Early versions of ULIPs were complex, opaque, and poorly explained. But over the last decade, regulatory changes and product redesigns have fundamentally altered how ULIPs work today. To evaluate them fairly, it’s important to separate outdated perceptions from current reality. Let’s unpack five common myths that continue to shape opinions and examine whether they still hold up.