Most earning individuals want both insurance and investment products to be a part of their financial portfolio. While the insurance plan provides life cover, the investment option provides a return on capital. So it’s obvious that both seem equally important. However, those in the middle-income group cannot afford both and are usually stuck between these two choices.
The advent of ULIPs or Unit-Linked Insurance Plans has solved this dilemma once and for all. With the ULIP plan, you get both the benefits – life cover and investment opportunity. However, ULIPs are available in both online and offline formats, so it creates new confusion for customers. If you also have the same confusion about whether to buy ULIP plans online or opt for the offline one, here are some insights for you.
Why Do You Need Online ULIP Plans?
Like most other online plans, online ULIP plans are also more popular because they offer more benefits than their offline counters. However, you should not take anyone’s word for it. So, here are 4 benefits of online ULIP plans to help you make better decisions:
- Cost-effective
Premium payments for any plan, including ULIPs, are a fixed expenditure. It means that the premium amount needs to be set aside from your annual salary/income, no matter what the situation is. This is where an online ULIP plan can be a great relief. Their premium amounts are comparatively lower than the offline plans.
In all offline plans, there are numerous additional expenses such as intermediary costs, administrative costs, etc. On the other hand, in online plans, it is you who do most of the work, from choosing the plans to uploading documents.
Moreover, since the additional costs are not there in the online plans, most part of the invested amount gets allocated to the actual plan. As a result, the return you get back is also maximised as compared to the premium invested.
- Time-efficient
In this fast-paced world, time rushes like a wind. So whether it’s your career or investment, you have no option but to match the same speed. Online plans can be a great help in this regard.
In the case of offline, there are agents involved, who not only take up your time with calls but also with physical meetings. It’s a standard practice to meet and explain the plan in detail. However, as a working individual, you may not have time to physically meet and understand various plans. So, the most feasible option for working individuals is to go for an online ULIP policy.
Moreover, with online plans, you do not have to wait for someone to explain to you the pros and cons of a policy. Instead, you can do it yourself at your leisure.
- Hassle-free process
Like every other plan, ULIPs also require a lot of paperwork. So, if you are doing it online, you don’t have to go around getting printouts of the documents and attaching them to the application form. Moreover, agents are also humans, and if they miss anything, you might have to repeat the whole process again, creating a lot of hassle.
ULIPs have a special feature of market-linked returns. As a customer, you might be interested in knowing more about the market-linked returns and might get tempted to reach out to an agent. First, however, it’s important to point out that you can get such information directly from the website page.
So, if you plan to buy ULIP online, you will get all the information along with a premium calculator and an option to compare and purchase all just with a click of a single mouse.
- Variety of offerings
In most plans, online plans usually have more variety than offline plans because you can see all the offerings online on the website.
In addition, besides the variations in a ULIP plan, there are numerous riders that come with it. For example, the Tata AIA life insurance policy has two rider options – comprehensive protection rider and comprehensive health rider. You can check the features of the riders and choose the one that is right for you.
Moreover, with such a variety of offerings available on online plans, you have the independence to choose the one that suits your financial needs perfectly. You would not depend on someone to convince you which plan is better for you.
Key Takeaways
With all the information at your disposal, you are now well aware of the benefits of buying a ULIP online. So, the only thing you need is to choose a good insurance provider. Choosing a plan is as important as selecting an insurance provider. So, you need to be very careful when you do so.
