What is the difference between a mutual fund and ULIP?

ULIPs and Mutual Funds are two different forms of investments. ULIPs are investment cum insurance products that provide both of these options in a single policy. Whereas, mutual funds are pure investment products. Some other differences between ULIPs and Mutual Funds are mentioned below;

Point of Difference ULIPs Mutual Funds
Liquidity After the completion of Lock-in Period High liquidity, except for ELSS where the Lock-in Period is for three years
Tax Benefits on premiums paid/amount invested All the ULIP plans are qualified for tax benefits under section 80C Only the ELSS investors are qualified for tax benefits.
Life Cover Yes No
Receivables for Nominee The sum assured or fund value whichever is higher (in some policies both are paid) Nominee receives the fund value
Switching of funds Investors can switch funds by paying the required fee Investors are not allowed to switch funds