Which one is beneficial ULIP or Mutual Funds

Please note that there are many type of ULIP products with different cost structures pushed by different life insurance companies. But generally speaking, cost wise, mutual funds are cheaper than ULIPs.

While investing or making your financial plan, you should always keep life protection and investments separately.

In your case, for protecting your life, you should choose a term plan and go for higher life coverage instead of taking a ULIP and get only max 10 times life coverage. Term plans are pure life insurance plans wherein you can get the maximum life coverage with minimum cost.

However, for wealth creation and achieving other financial goals, you should always choose mutual funds.

Mixing ULIP plans with mutual fund is not a good idea. How, please read this https://www.advisorkhoj.com/articles/Mutual-Funds...

And also read this - https://www.advisorkhoj.com/articles/Financial-Planning/Term-Life-Insurance-and-Mutual-Funds-or-ULIP:-Which-is-a-better-option?

Hope the above helps! Thanks for writing to Advisorkhoj !!