Understanding life insurance options is essential to creating a secure financial plan. Among the choices, ULIPs (Unit-Linked Insurance Plans) and term insurance are two distinct products catering to different needs. While term insurance offers pure life cover, ULIPs combine investment and insurance, making them suitable for policyholders with dual goals. Deciding between these plans depends on factors like financial goals, risk appetite, and budget. This article breaks down the difference between ULIP and term plan by analysing coverage, premiums, tax benefits, suitability, and investment opportunities. With this insight, you can decide whether to choose ULIP or term insurance based on your personal financial requirements.