There is no doubt that an ELSS Mutual Fund is much better than an insurance policy. Let me cite the two major reasons here:

  1. Insurance policies that mix investment with them are much more expensive. The commissions and expenses are quite high resulting in a lower net return rate.

  2. ELSS has only 3 year liquidity where as many insurance policies have higher locking. Surrendering the policy is not easy and you lose to costs.