Four Reasons To Buy ULIP Online

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Introduction

We live in an age that has no dearth of choices: whether you wish to purchase something as simple as a food product or something as intricate as a financial product, you are likely to have several choices. One of the financial products that has become a preferred choice of investors over the past few years is a ULIP.

What Is ULIP?

A Unit Linked Insurance Plan or ULIP is a product that combines the benefits of investment and insurance alike. If you opt for a ULIP plan, you shall be able to enjoy the benefits of both a life insurance cover and an investment avenue. The workings of a ULIP are fairly simple and easy to understand: Whilst one part of the premium you pay towards a ULIP goes into the purchase of a life cover with a fixed sum assured, the other part is invested into a market-linked fund of your choosing.

With ULIP plans being extremely dynamic instruments, you can select the fund you wish to invest in on the basis of your risk appetite and financial plan. Should you be a risk taker, you could invest in a fund that is equity heavy. On the other hand, a debt-based fund could serve your investment goals well if you are a risk-averse investor. For investors willing to undertake a moderate degree of risk, hybrid and balanced funds are also excellent options.

Whilst the investment aspect of a ULIP can help you build your wealth in a systematic and relatively hassle-free manner, the life cover aspect can help your family in the unfortunate event of your passing cm during the term of the plan. In addition to this, ULIPs also have several other benefits, such as:

  1. Systematic savings towards the fulfillment of a specific financial goal
  2. Tax deduction on ULIP premiums (Section 80C of the Income Tax Act, 1961)
  3. The flexibility of fund switching (to the extent permissible under the selected plan)
  4. Transparency in the ULIP fund value
  5. The freedom to increase your investment through top-ups, etc.

Four Reasons Why You Must Buy a ULIP Online

In this day and age of digitalisation, there is almost no product that cannot be purchased online, and financial products are no exception to this. You can easily purchase a ULIP online from the comfort of your home, office, or car. In fact, your location becomes completely irrelevant as does the need to stand in long queues or contend with a host of intermediaries.

Should you choose to buy a ULIP online, you can easily assess and compare various ULIP plans and select the one you deem best suited to your financial goals and risk appetite. What is more is that you can save on money because online ULIPs tend to be cheaper owing to the elimination of intermediaries from the value chain.

Here are some of the benefits of buying a ULIP online.

  • You will save time:

    Time, as they say, is money. With a multitude of tasks begging for your time and attention and seemingly jot enough hours in the day, any opportunity to save time is worth its weight in diamonds. If you wish to purchase a Unit Linked Insurance Plan, the best course of action is to opt for an online ULIP.

    All you have to do is peruse the various ULIP plans available online, carry out a simple comparison, and select the one that is most in line with your financial goals. With the availability of online ULIP calculators, it is easy to get quotes for ULIPs, which makes the task or comparison and selection all the easier. Surely, there is no point whatsoever in standing in a tedious queue to buy a ULIP offline when the same task can be accomplished with the click of a few keys.

  • You will save money:

    Another reason to opt for the online purchase of a ULIP is that you can get an online ULIP plan for a lower cost as compared to its offline counterpart. Owing to the fact that there are no intermediaries involved in an online purchase and you are purchasing the plan directly from the insurer, the overall cost of the product is reduced by a lathe extent whilst its benefits remain the same.

    A vast majority of the premium you pay for an online ULIP plan gets allocated to the actual plan. This is in stark contrast to an offline ULIP where commissions and a wide range of administrative costs eat up a huge chunk of the premium, thereby making the plan costlier to the customer. The equation is simple: an online ULIP is far more cost-effective than an offline one.

  • You will face a hassle-free process:

    By opting for an online ULIP, you shall be doing yourself a huge favour by way of avoiding paperwork. All the necessary documents can be submitted in their digital forms and the ULIP policy document will be delivered to your email inbox instantaneously.

    With the purchase of an online ULIP, not only will you save yourself a significant amount of hassle and paperwork, you will also have done your bit in saving the planet. Imagine the amount of paper saved in terms of the copies of documents you would have had to post otherwise, not to mention the envelopes used in the postage. So online ULIPs are a win-win situation for everyone. And when the planet wins, we all win, right?!

  • You will find a product that suits your needs:

    The foremost benefit of buying a ULIP online is, arguably, the fact that you can study the features of various ULIP plans and select the plan that suits your unique financial needs. Whether you wish to accumulate a certain sum for your higher education, marriage, the purchase of a home, your travels, or your retirement, a ULIP is an excellent and highly customisable financial product. And the fact that it also offers the benefit of a life cover is akin to the icing on an already delectable cake.

    By choosing to buy a ULIP online, you can spare yourself unnecessary advice from any intermediaries, something that is a prime feature of the purchase of offline ULIP plans. You can download the policy wordings for various ULIPs, study their terms and conditions, tenures and benefits, costs and exit clauses, etc. You can compare the various available ULIPs and find the one that is closest to your financial goals. And you do not need to pay any financial advisor or intermediary any fee or commission for the task. You can make an informed and mindful decision and choose the plan that is just right for you.

In addition to the aforementioned benefits of buying a ULIP online, you can also enjoy a higher degree of transparency, safety, and flexibility in the process as compared to an offline ULIP.

Conclusion

Now that you know what is a ULIP and how versatile a financial product it is, you can go ahead and find the best ULIP plan for yourself. The best part is that you can do so without having to resort to any external advice. All you need is an Internet connection, and mission 'Find the best ULIP' shall be all systems go.

Choose well and stay safe! And while you are at it, you can check out the excellent ULIP plans available at Aditya Birla Sun Life Insurance.

References:

https://www.bajajallianzlife.com/life-insurance-guide/ulip/4-reasons-to-buy-online-ulip.html
https://www.canarahsbclife.com/blog/ulip/benefits-of-buying-online-ulip-over-offline-ulip.html
https://lifeinsurance.adityabirlacapital.com/ulip-plan
https://www.maxlifeinsurance.com/blog/investments/6-benefits-ulip-investment-plan
IN ULIP, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY POLICYHOLDER.
ADV/4/22-23/166

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