Ulip vs mutual fund.. key final points

With the introduction  of the long term capital  gains  tax (LTCG) there has been a raging debate that the ulip has now become a better product  than an equivalent  mutual fund.

Here is my final view.

THE ULIP IS BETTER THAN MF IF

1. Your age as the main person is below 44 yrs of age. Because of age the cost of mortality is really high and  hence  any benefit  is really eaten up

2. You dont need liquidity.
We are all planning  long term and usually one doesnt plan on taking this money out because this is either for child education  or for their  marriage. If there is a need for liquidity then one can plan to pull  out money from epf and nps since their  rules are flexible.

These are the only two rules one needs to follow... with the use of the ulip one can benefit in the following ways

1. No LTCG. straight away a 10% money in the pocket.
2. One gets insurance  cover for almost free ...
3. There are some ulips where the premium is waived off and the fund pays it in case of death.
4. When you shift funds one will need to pay LTCG.. here in ulip one can shift internally..though in the same fund house.

In my mind now it is very clear.. go the ULiP way if you are below 40!