How to Buy a ULIP Plan Online?
Unit-linked insurance plans (ULIPs) are investment-oriented life insurance plans that help you create a market-linked corpus for your financial goals. The premium that you pay for the plan is invested in market-oriented securities through different investment funds. You can choose suitable funds to invest your money in depending on your investment strategy and risk appetite. Thereafter, your investment may grow depending on the market performance, and you may earn market-linked returns.
ULIPs also offer flexibility in managing your investment. You can switch between the investment funds, make partial withdrawals after the lock-in period of 5 years, and also pay additional premiums through top-ups, subject to the policy terms and conditions.
The insurance protection available under ULIPs pays a death benefit in the case of a premature demise during the policy term.
Features of ULIPs
Some of the salient features of ULIPs are as follows –
- There are different types of investment funds under ULIPs. Primarily, the funds are equity funds, debt funds, liquid funds and hybrid/balanced funds.
- You can choose more than one investment fund and also switch the funds during the policy tenure as per your risk appetite
- You can choose optional riders to enhance the scope of the policy, on payment of additional nominal premium
- The returns under ULIPs, would depend on the fund selected and the market performance.
ULIPs can be bought online as well as offline. The offline mode involves buying through the company’s nearest branch office or authorised agent/representative. Finalise the policy you want to buy with the intermediary or at the branch, fill out the proposal form, submit relevant documents, and pay the premium. The policy will be issued, and you will receive the policy documents at your registered address.
Now let us take a look at how to buy ULIPs online.
Steps to buy ULIPs online
For buying ULIP online, you can visit the official portal of the life insurance company, choose a relevant ULIP based on your needs and buy the policy online. The process is as follows -
- Compare the available ULIPs and choose a policy that suits your insurance needs and financial goals
- You can use the ULIP calculator to check how much you need to invest today to build your desired corpus tomorrow at the assumed rates
- You may choose from the available riders under the plan, as per your requirement
- Once you finalise your ULIP, fill out the proposal form available online
- Submit the form online, along with a scanned copy of the relevant documents
- Pay the premium through the secured payment gateways offered by the company. You can pay the premiums through digital payment modes such as NEFT, Credit/debit cards, Net banking, UPI, e-wallets, etc.
- Once the premium payment is made, the insurance company will issue the policy and send an acknowledgement of confirmation.
Things to keep in mind when buying a ULIP plan:
While buying the ULIP plan online is simple and quick, here are a few things that you should remember when buying the policy -
- List of documents like ID proof, address proof etc need to be submitted to the insurer
- Medicals and income proof may be required depending on age, sum assured etc.
- Check the charges associated with the plan
- Select a suitable tenure based on your financial goals
- ULIPs offer optional riders, which can help in enhancing coverage. Depending on your coverage needs, choose suitable riders for an all-inclusive scope of protection. This can be opted on payment of additional nominal premium
- Check the charges, if any, associated with switching and partial withdrawals so that you can make informed decisions
- Some ULIPs may also offer additional benefits of loyalty additions, fund boosters, etc. Choose your ULIP plan accordingly.
- Remember to mention your personal and financial details correctly at the time of application. If you hide any information or give false information or detail, you might face rejection at the time of claims.
- Choose a suitable premium payment mode and frequency that is affordable and suits your budget so that you can continue the coverage without any financial strain.
- Appoint a nominee to the plan at the time of buying a ULIP plan. The nominee is one who gets the death benefit under the policy in case of the demise of the life insured.
- Choose a suitable and comprehensive ULIP and buy it online or offline to create the desired corpus for your financial goals. Do note, the insurer will underwrite the policy before issuance.
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