Insurance plans have evolved greatly, well beyond merely offering you a life cover. Today, there are plans that can help you save and invest as well. A Unit Linked Insurance Plan (ULIP), for instance, gives you the double benefit of a life cover and market-linked returns. Wondering what ULIP insurance is all about?
Let’s find out the details and check out the difference between online and offline ULIPs.
What is a ULIP?
A Unit Linked Insurance Plan is a kind of life cover that combines the benefits of investment and insurance. Policyholders pay premiums to the insurer, just like it is in other kinds of insurance. In addition to this, there are also ULIP charges levied by the insurance company for managing the funds into which the money is invested, apart from mortality and other charges.
The attractive thing about ULIPs is that you can choose to invest in different types of funds, like equity funds, debt funds, or a mix of both. This way, you can customize your ULIP insurance plan according to your risk profile. And by remaining invested in ULIPs over the long term may help you achieve your life goals.
When it comes to purchasing ULIPs, you can choose to buy them online or offline. Let’s take a look at each category one after the other.
What are online ULIP plans?
An online ULIP insurance plan is simply a Unit Linked Insurance Policy that you can purchase online, from the comfort of your home. Online purchases can be made directly from the insurance company’s website. Or, you can purchase them from the site of an insurance aggregator or other insurance intermediaries.
Buying ULIPs online is quick and easy. While the exact steps involved may vary from insurance provider to another, the basic framework remains the same, more or less. Here’s a quick walkthrough of the steps involved in the process, broadly speaking.
- Log into the website of the insurer from whom you are purchasing your ULIP.
- Compare the different plans available, check the ULIP charges and the benefits offered, and select the plan that suits your requirements.
- Select the premium payment term and the premium payment frequency.
- Submit the soft copies of KYC and any other documents that may be required.
- Pay the first premium due online, via the payment modes normally available, such as credit or debit cards, or internet banking.
- Get your ULIP insurance plan. Simple!
What are offline ULIP plans?
Offline Unit Linked Insurance Plans are simply ULIPs that you purchase offline, in person. You can purchase ULIPs offline from an authorised insurance agent/ intermediary, or by walking into a branch office of the insurance provider directly. The process for purchasing ULIPs offline is more or less similar to online ULIP purchase, except that the submission of paperwork and the payment will be done in person.
1. Advantages of purchasing online ULIP plans over offline ULIPs
Nowadays, with contactless solutions becoming both preferred and necessary, online ULIPs appear to be getting increasingly popular. And for good reason too, since they have all advantages of offline ULIPs. Here are some of the ways in which online ULIP insurance plans may benefit you more.
2. They may be more cost-effective
Since there are no intermediaries involved, the cost of purchasing ULIPs online is ultimately lower. The cost savings can help you redirect that extra money towards more savings! And that makes online ULIPs more affordable and beneficial for you, when compared with offline plans.
3. The purchase process is quicker
Buying Unit Linked Insurance Plans online is not only more economical, but it’s also much faster and more hassle-free. You can save a lot of time by simply getting your ULIP purchase done online. Plus, you can do it from the comfort of your home. All you need is an internet connection and a device like a smartphone or a laptop.
4. You can compare different options before purchase
When you’re online, you can also compare the different ULIP insurance plans available on offer. That way, you can purchase the plan that gives you the most benefits at the most affordable rates.
That sums up the key differences between online and offline ULIPs. Before you make your purchase, ensure that you weigh your options and select the mode of purchase that is most convenient for you.