The insurance industry has opened its gates to electronic transactions. While health and motor insurance plans were the first to be launched online, 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:
Affordable
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 excludes third-party charges, such as your insurer’s commission, other external costs, etc. 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 cheaper than offline ULIPs.
Convenient
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 a 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 much of your time since you can purchase them with just a button click.
Transparent
After its introduction, the ULIP policy was initially criticized for its lack of transparency. 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 to opt for an online ULIP policy due to its easy accessibility and immediacy. To purchase a ULIP policy from your insurer’s website, follow the 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, or annually. After selecting the excellent payment mode, pay your premium amount using the available options, such as a debit or credit card, NEFT, etc.
Step 3: Purchase
After the payment, buy the selected ULIP policy to reap the benefits for a long duration.
An online ULIP policy can provide better ULIP benefits, such as transparency, affordability, convenience, and so on, than offline purchases. It can also offer ULIP tax benefits, regardless of whether it is purchased online or offline. Before investing in a policy, compare various options, use a ULIP calculator and choose the right per your requirements. Moreover, see to it that you consider the past performance of the ULIP and the ULIP returns of the last ten years.
