The IRDAI has mandated that Unit Linked Insurance Plans (ULIPs) must not be advertised as 'investment products' to ensure clarity and protect consumers from financial misunderstandings. ULIPs differ from traditional endowment policies and carry specific risks, which need transparent communication. The directive aims to foster a more ethical insurance environment by mandating clear disclosure of ULIP risks and fee structures. This initiative also aligns with broader efforts to enhance financial literacy and consumer protection in India.
