ULIP pension plans or market linked pension plans are offered by public and private life insurance companies to encourage regular savings that accumulates until retirement, after which the individual can enjoy a steady income. They offer a number of annuity options. Mutual fund pension plans do not offer annuity products with guaranteed income as they are market risk based. Even though ULIP pension plans also involve investment in debt and equity, the insurance company assumes the risk and offers a fixed payout. In short, ULIP pension plans focus on both accumulation and annuity while MF pension plans focus on accumulation. ULIP plans are ideal for long term while mutual fund plans are short-term focused.