ULIPs are new trend in the industry; nowadays 90% of the insurance agents are trying to sell ULIPs

According to ULIP products available in market i don't prefer ULIPs than traditional plans. And if we are comparing ULIPs selling then i agree with Mr. Padmanbhan that mis-selling is main reason behind it. ULIPs looks attractive than traditional plans. Agents got a handsome commission against ULIPs. High allocation and other charges help to do the same. But overall investor doesn't gain more profit as compare to company. Because if insurance word skip from the ULIPs then it is as like as Mutual fund. It means many alternates combination are available in market for ULIPs.. i.e. term plan with tax saving Mutual fund etc. etc..

 With the kind of demand, it is almost like the terms ulip and insurance are interchangeable. But I think more regulatory action is needed. There are issues of misselling and profiteering. As a financial product, with mutual funds demand lacking growth potential the prospects of ulips looks rewarding. But I think a large percentage of the demand is due to misselling. With the kind of costs ulips are charging you could end up as big looser, especially if it is short term. Even for insurance companies, the primary goal should be insurance and the long term success depends entirely upon how successful they are as insurance providers and not as investment managers. Ulips for sure did the job and offered temporary solace during the tough years and could help them to break even. But the long term success is all about ‘insurance’.