ELSS Versus ULIP

I went through your story on insurance for saving taxes but if I invest in ULIP then it offers me better tax-adjusted returns. Then why should I invest in ELSS as against ULIP?
- Ratin Pandya

Editor Responds : I believe insurance and investing should not be mixed. The parameters to evaluate any investment cum insurance policy are that they should first serve their primary purpose, which is providing life cover. With the lack of flexibility and lower transparency of ULIP, the tax treatment does not give much advantage. ULIP should be compared with a term policy plus mutual fund only where both offer the required insurance cover in the first place.