Both plans give you the opportunity to get returns on your money, along with life cover. In ULIPs, your money gets directed into different types of fund, depending on your risk appetite. In such plans, the risk of investment is borne by you. In traditional plans, your money is invested in low risk options and offers guaranteed maturity proceeds. Also, in such plans, the risk is borne by the insurance company. ULIPs: Higher risk & market returns Traditional Plans: Lower risk & moderate returns.