The insurance industry has opened its gates to electronic transactions. While health and motor insurance plans were the first to be launched on online platforms, a Unit Linked Insurance Plan (ULIP) has joined the bandwagon on online mediums. A ULIP plan can be a mix of investment and insurance purchased from your insurer’s website.
Before you buy a ULIP policy from the online portal of your insurer, let’s understand how an online ULIP can benefit you over an offline purchase:
Although an offline ULIP purchase is affordable, you should invest in an online ULIP policy since it can be relatively cheaper. Ideally, an online ULIP policy does not consist of third-party charges, such as your insurer’s commission, other external charges, and so on. Additionally, your insurer might not levy a premium allocation charge during an online purchase. Simultaneously, an offline ULIP might have a premium allocation charge of 10% in the first year, depending on its product. Due to the absence of such ULIP charges, an online ULIP policy can be available at a low cost than offline ULIPs.
Many of you might avoid purchasing any insurance policy due to the time-consuming and complicated process. However, gone are the days when buying an insurance product meant standing in the long queue at your insurer’s office. Due to insurance plans’ online presence, such as the ULIP policy, you can ensure your maximum convenience. Moreover, online ULIPs can save a lot of your time since you can purchase them with just a button click.
After the introduction, a ULIP policy was criticized for the lack of transparency initially. However, the times have changed today after the presence of ULIP policies on online platforms. Since there is no intermediary between you and your insurer, you can consume all the raw details, such as the premium amount, the overall benefits, and ULIP policy features. In addition to this, you can print the policy document after purchasing an online ULIP policy.
An online ULIP policy can be convenient, affordable as well as a transparent form of purchase. Hence, it would help if you opted for an online ULIP policy due to its easy accessibility and immediacy. To purchase a ULIP policy from your insurer’s website, follow these top three steps mentioned below:
Step 1: Select
The selection of a ULIP policy can be simple. Since there can be numerous ULIP options, you can compare every ULIP policy and choose the one based on your investment goals and risk appetite.
Step 2: Pay
The premium can be an essential component that requires regular payment. Before you pay the premium, choose the premium payment mode, quarterly, monthly, half-yearly, and annually. After selecting the premium payment mode, pay your premium amount using the available options, such as a debit or credit card, NEFT, and so forth.
Step 3: Purchase
After the payment, buy the selected ULIP policy to reap the benefits for a long duration.
In a nutshell, an online ULIP policy can provide you with better ULIP benefits, such as transparency, affordability, convenience, and so on, than offline purchases. Apart from this, it can also offer ULIP tax benefits, irrespective of whether it is purchased online or offline. Before you invest in a policy, compare various options, use a ULIP calculator and make the right choice as per your requirements. Moreover, see to it that you consider the past performance of the ULIP and the ULIP returns of the last 10 years.