Ulip redux?

Hard to understand and harder to get returns from, unit-linked insurance policies had gained a reputation for their high agent commissions and non-transparent nature. After Irda stepped in to cap Ulip charges from September, many insurers have started hardselling universal life policies (ULPs), offering much in terms of flexibility and little in terms of transparency. Not surprisingly, the insurance regulator is not amused. After capping the charges on Ulips from September 1, Irda is now planning to cap charges on ULPs.The regulator is worried that ULPs do not offer much clarity and is replacing Ulips in terms of new business. In fact, Irda chief J Hari Narayan recently told the media on the sidelines of an insurance seminar that these are new products and pose some challenges. “We do not want too much play in universal life policies which are detrimental to customers. We will shortly come out with guidelines .