Everything you should know about Online ULIPs

The comfort of online transactions has made it a popular method of purchase amongst the population. The insurance industry has also witnessed a drastic increase in the number of online policyholders in the past few years. This has led to almost all prominent insurance companies in India offering their insurance plans online, making the entire process effortless. Gone are the days when individuals had to remove time from their hectic schedule to go to an office and purchase a policy. Instead, they can know about a policy and buy it in a matter of minutes. Buying insurance has become as easy as shopping for any clothes online.

Read further to know about how to buy a Unit Linked Insurance Plan (ULIP) online:

What is a ULIP policy?

ULIP is a type of life insurance policy that has a unique blend of insurance and investment. It helps a policyholder secure the lives of their loved ones from unforeseen circumstances. Along with it, the investment aspect facilitates individuals to generate wealth in the long haul. When you buy a ULIP plan online or offline, a part of your premium is used towards providing you with life insurance, and the other part is invested in the funds of your choice. The purpose behind your investment and your ability to take the risk will determine which funds you want to put your money in. You can check the performance of your fund with a ULIP calculator.

What should you know about online ULIPs?

If you want to buy a ULIP, there are two ways to go about it. You can either buy a ULIP online or offline, depending on your convenience.

Here are some things you should know if you are planning to buy a ULIP online:

  • Cost-effective
    One of the biggest advantages of buying a ULIP online is its cost. When you buy it offline, there are several individuals and resources involved, which are added as charges to your ULIP. These include the charges catering to distribution expenses and administration fees. Buying directly from the Internet eliminates any middlemen and will have you dealing with the insurance company directly. This eliminates a part of your premium that was meant for all the offline expenses involved. You can also use a ULIP calculator to determine the cost difference between both methods before buying a plan.

  • Availability of several online tools
    When you buy a ULIP plan online, one of the major perks is that you get tailored plans which meet your specific needs. You also get to do your own research and compare plans online, which helps you narrow your choices. There are also tools like the ULIP calculator available, where you can mention the estimated coverage you need and find the approximate premiums for it. These tools help policyholders to examine various plans and then buy the one that works for them.

  • Time-efficient process
    For buying online ULIPs, the process is simple enough such that within minutes, you can apply for the policy. Also, uploading documents and receiving policy papers online does not take any time or effort, in comparison to physically going to the insurance provider’s office. With the busy schedule that everyone has these days, insurance companies have made the online procedure so easy, that it barely takes minutes to fill in your data and submit your KYC (Know Your Customer) documents. With the online mode, the paperwork involved is reduced significantly. You can simply save the forms and documents related to your ULIP on your device or cloud and access them whenever needed.

  • Helps in managing the policy with ease
    Along with the insurance component, a ULIP comprises an investment component as well. You get to choose the fund allocation of your ULIP based on your risk appetite. Over the years, you can change this allocation from debt to equity and vice versa. This allows you to benefit from market fluctuations and gain high returns. You can use a ULIP calculator to get an estimate of the returns you can get from the ULIP you are planning to buy. When you have purchased a ULIP online, managing your fund allocation can be easily done through the insurer’s website. Also, paying ULIP premiums online is easy and hassle-free.

Purchasing a ULIP online is an efficient way to go about your insurance and investment. It is economical, convenient, and simple to manage. Before buying a ULIP, it is always important to read the fine print to avoid any problems later.

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