ULIPs are one-of-a-kind plans that offer dual benefits of life insurance as well as market-linked investments in a single policy. Today, these plans are more accessible than ever.
Earlier, plans like ULIPs were only available offline. For some people, it was quite the hassle to have to buy them offline. They had to start by looking for an insurance agent and then choose from the plans available to them, followed by making the payments offline.
That is not the case anymore. Today, the entire process of perusing through available ULIPs and buying them has shifted online. Many people tend to find it easier than buying the plans offline.
Before we compare the merits of buying these policies online, let’s understand what a ULIP is and how these plans function.
Understanding Unit-linked Insurance Plans
Before buying any insurance policy, it is necessary to understand its features and what they have to offer. The same is true of ULIPs. Let’s take a look at what ULIP is and how you can benefit from it.
ULIP is the abbreviation for Unit-linked Insurance Plans. The plans offer a life cover as well as unit-linked wealth creation benefits. Thus, the plan premium is divided to address both of these benefits. You can use a ULIP calculator to figure out what sum assured as well as maturity benefits you may expect for the premium you pay.
This makes the plan suitable for people who are keen on creating investments but do not seek to put their money into other specific schemes. Here, most of your investments are managed by a dedicated fund manager, thus taking most of the load off of you.
With the life cover, you can ensure that your loved ones are taken care of. It allows them to dream of a secure future despite the uncertainties life may put in their way. With the investment aspect, you can create security for your collective future, where you have the financial means to fulfil your dreams as well as support theirs.
Buying ULIPs Online Vs Offline
Today, one can choose to buy a plan online as well as offline. Most people are familiar with the process of buying insurance plans offline. You can either consult an insurance agent or get in touch with an insurance provider representative. They will offer you a list of plans to choose from, and once you choose, they should get the buying process started for you. There is little you may have to do in this case, except provide the right documents to the agent and make the payments on time.
On the other hand, buying ULIPs online is a process that a customer can proceed with all by themselves. It requires you to go to either the insurance provider’s website or app, or a third-party aggregator website. Here, you can go through the list of available options and compare them to see what you like best.
Once you have selected the plan you would like to buy, you can proceed to buy the plan. It will require you to provide your personal details, including your contact details. You will then be required to upload and submit the relevant documents and make the payment online. You will have the option to make the remaining premium payment online.
Merits of Buying ULIPs online
Here are a few reasons why you should consider buying ULIPs online.
- Lower premiums
You can compare ULIP premiums when you buy the plans offline vs when you buy them online. Using a ULIP calculator, you may find that online plans tend to be slightly less expensive. This is usually attributed to the fact that there are no third-party payments to be made using your premium. Thus, many people may prefer paying lower premiums, and thus, buying ULIPs online.
- Hassle-free paperwork
When the process of buying ULIPs is implemented online, there is little paperwork that is conducted offline, if at all. The customer is required to upload most of the documents, and also, receives online copies of their policy-related documents. Thus, the paperwork may seem hassle-free for most consumers, as it is almost entirely online.
- Easier to compare
When buying policies online, you can also compare a large number of policies, as most insurance providers now list almost all their policies online. This comparison tends to be more difficult to do offline.
ULIPs are one of the most preferred plans for people who seek investment plus insurance in a single policy. Furthermore, they are also easily accessible, especially since they have been made available online. You can understand both these processes of buying ULIPs and choose the one that suits you best.
