New Delhi, April 8 -- When people think about life insurance, they always consider Unit-Linked Insurance Plans (ULIPs) and term insurance. ULIPs focus on combining investment with insurance, whereas term insurance ensures life cover.

However, failing to understand the intricacies of these two results in poor decision-making. Here, we discuss the five most common mistakes people make when deciding between ULIPs and term insurance, and how to avoid these pitfalls.

A common mistake aspirational ULIP and term insurance buyers commit is failing to understand the core purpose and objectives of these plans. ULIPs, for example, offer dual benefits. Under this scheme, a part of your premium amount is invested in market-linked funds. The rest of ...