The pace of digitisation has increased manifold in the recent past. With government initiatives like ‘Digital India,’ all available services have taken the online route. Financial services are no exception. To keep up with changing times, insurance companies have launched ‘online only’ plans to attract more customers. These plans have benefits that are not otherwise available in case of offline channels.
One such product that is picking up traction is a Unit Linked Insurance Plan or ULIP. With already a plethora of options available under the life cover segment, you might ask why should I invest in ULIP?
ULIPs are unlike any other life insurance plans. ULIP benefits not only include a financial cover to your dependents in your absence but also as an investment tool with a definite maturity. It covers your life and gives you the option to invest and earn at the same time. The investment in such ULIPs are made in funds. The fund managers pool the investment of like-minded individuals to invest in stock markets. You can opt between the different funds available for investment, depending on your risk appetite. Along with risk appetite, your financial goals and time horizon should be accounted for when investing in these funds. ULIP investment plan is an effective solution to save efforts and time in searching for stocks to invest.
Let’s look at the advantages of buying ULIPs online –
There is an elimination of intermediaries when you buy a ULIP online. Eliminating intermediaries leads to further reducing the statutory charges that are otherwise levied in case of offline sales. Due to this, a larger portion of your premium is allocated to funds. More investment increases the effective valuation for the investor.
Savings in Time
With the entire process simplified in just a few clicks, you can log on to the insurer’s website to browse for all available plans that suit your needs. Once shortlisted, you can make the payment and buy a unit-linked insurance plan.
You do not have to take the trouble to search for an authorised agent and deal with them. Instead, you can browse online for the available options at your convenience. Moreover, with the lockdown scenario, it has become imperative to maintain social distancing. Staying indoors and selecting an online ULIP can protect you while you buy an insurance plan for yourself.
When you buy ULIPs online, you have the freedom to select the best plan according to your needs. These needs may vary for each individual. Some of the essential considerations that must be taken care of are the financial goals, the time remaining to achieve them and the ability to assume the risk for the investment.
While the above mentioned are the advantages of an online ULIP, here is how you can buy one-
- Head over to the life insurer’s website where you would want to purchase the policy.
- Browse through the various ULIPs offered.
- Check historical ULIP performance
- Determine your needs and whether they will be fulfilled on selecting a particular investment plan.
- Select the insurance policy and furnish the required information.
- Upload the necessary documents as mentioned in the application form.
- You can pay online using the different modes available and get a life cover.
As we have witnessed the lockdown has brought corrections in the stock markets, it is an excellent time to buy ULIPs. Buying a ULIP will not only get you a life cover, but also a unique investment opportunity to earn during the restoration phase of the stock markets. Generally, it is observed after steep decline there is an equal correction in the foreseeable future. So it makes a smart move to buy a ULIP that helps attain financial goals and offers insurance cover too.