New Delhi, Oct. 13 -- Unit Linked Insurance Plans (ULIPs) are often promoted as all-in-one solutions. They combine life insurance with investment in market-linked funds. For many, this makes ULIPs appealing because they offer both protection and potential for wealth growth. But buying one without careful evaluation can lead to disappointment. To make an informed decision, here are the key factors you must check before committing.

The first check is whether you really need the dual benefit. A ULIP diverts part of your premium toward life cover and invests the rest in funds. If you already have a term plan and prefer investing directly in mutual funds, a ULIP may not add value. But if you want a disciplined structure that gives protection ...