Mumbai, Aug. 24 -- Prior to 2010, Ulips was the bad apple in the basket with charges soaring up to almost 7-8% and hugely mis-sold. From 2010, the regulator has made multiple changes including limits on charges. "Currently there are about 100 plans and over 500 fund options," said Kapil Mehta, founder, Securenow.in. Ulips have two components-insurance and investment. "Because of the life insurance component Ulips have mortality charges," said Anik Jain, co-founder and chief executive officer, Symbo Insurance, a Mumbai-based insurance broker. The fund component takes care of the returns of Ulip plans.

"The NAV (net asset value) of the funds are declared every day. Your returns are basically the difference between the NAV of the present da...