You need to look at the performance of the funds offered in the Ulip said Amitabh Chaudhry, MD and CEO, HDFC Life. However, the fund performance will also depend upon the fund composition; for instance, debt funds will usually have lower but consistent returns as compared to equity funds. Also, the fund chosen to invest in should suit your risk profile. This will determine if you want to invest in high-risk high-return equity funds or debt funds with secure returns or a balance of both equity and debt funds. You also need to look into the total charges applicable in the product.
The key charges applicable in Ulips are Premium Allocation charge, Policy Administration charge, Fund Management charge, Mortality charge and Discontinuance charge. Please ensure that you are aware of these charges. If your age is on the higher side (>45 years) then ensure that the Ulip is tax compliant (the sum assured chosen is at least 10 times the annualised premium) if you are looking to claim tax benefit.
