Online ULIPs vs. Offline ULIPs – Which is More Beneficial?

If you are looking to buy a financial product that offers investment options along with the security of traditional life insurance, then ULIPs are the best bet for you. These unique offerings from insurers have caught the attention of many because of the varied benefits they offer, such as flexibility in fund options and tax savings, amongst others. Earlier, one had to go all the way to their agent or the insurance branch to buy a ULIP plan. Now, a digital procedure that requires a few clicks has largely replaced the offline process. But are there any benefits to buying a ULIP online as compared to buying it offline? The following points may be of help in arriving at the answer.

Benefits of buying ULIPs online vs. offline 

  • Convenience and ease 

To buy a ULIP offline, you have to visit the branch of your insurance agent or the insurance company. This means taking time out of your schedule to plan such a visit. This can be difficult for those who are already time-strapped. Furthermore, buying ULIPs is a time-consuming process due to the complexity of the product. So, you should expect to spend a considerable amount of time at the office as well, trying to understand ULIP benefits and wordings.

However, when you buy a ULIP online, you end up saving a good amount of time. All you need to do is go to the website, review the features of the plan, and go ahead with your decision. The payment can be made in a matter of minutes. You can buy a ULIP online even in the comfort of your home.

  • Minimal paperwork 

Buying ULIPs offline also means gathering and taking a bunch of important documents to the branch. For some, such paperwork can make the process quite tedious.

When you buy ULIPs online, all you need to do is upload the soft copies of the required documents. The insurer will then access them digitally. There is no need to deal with large amounts of paperwork and filing.

  • Costs involved in the process 

Perhaps the biggest difference between buying a ULIP online compared to buying it offline lies in the costs. Offline ULIPs are usually availed via agents, who will consider their own commission in the final cost as well. Depending on your requirements, theremight be other intermediaries as well, such as brokers. This increases the total costs involved in the process substantially.

Since there are no intermediaries involved when buying a ULIP from the website, the costs are significantly low. Plus, many insurers offer discounts to their digital buyers to promote online policies. Thus, not only do you save an immense amount of time and energy, but money as well.

  • Variety of resources at the disposal

Agents have particular targets to meet. So, they may show you and push certain kinds of policies only. Plus, the kind of information you get access to at the insurance branch will also be limited.

On the other hand, the digital process gives you access to a variety of ULIP policies, customer reviews and testimonials, tools such as the ULIP calculator, and so on. You can compare the policies and other features at your pace and without any intervention from an agent. This makes for a well-informed decision.

What to ensure if you are buying ULIPs online: 

Use a secure connection 

When making the payments digitally for your ULIP policy, ensure that you are using a secure internet connection. Using an unsafe, public connection can lead to your information being potentially misused. It is advised to buy financial products with your home Wi-Fi or a private internet connection.

Buy from a reliable source 

Apart from the insurer’s website, there are many insurance aggregators in the market these days. As a buyer, you should ensure that you are using and providing private information to a reliable site. It is recommended to buy ULIPs from the insurer’s website only. Even when using the ULIP calculator, avoid providing sensitive information on the site.

Look for the best insurer 

Choose an insurer that offers you the best features within your budget. A variety of fund options, free fund switches, excellent past record and future estimates, and 24/7 claim support should be looked for, amongst other things.

We hope these points help you make a better decision so that you reap the maximum ULIP benefits.

About Vitor Correia Cardoso

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