With the advent of technology, a majority of customers opt for online or electronic transactions since they are the easiest and convenient options. In order to suit the needs of the customers, insurance companies have availed the policies on their websites wherein the customers can purchase and renew it online.
After the presence of health plans and motor insurances online, a Unit Linked Insurance Plan [ULIP] is the next suited alternative for the investors. So if you’re wondering how an online ULIP plan is beneficial than a traditional ULIP, go through the following points mentioned below. Take a look:
What are online and offline ULIPs?
- Online ULIP Policy
Ever since the insurance companies have introduced online ULIPs on their respective websites, every investor prefers investment in online ULIPs rather than offline ones. This is simply because of the fact that these online ULIPs are not only time saving but also a cost-effective means of investment. Moreover, an investor can purchase a ULIP insurance online by sitting in any part of the world. Take a look at these simple tips of investing in online ULIPs:
- Log in to the online portal of your insurance provider
- Submit the required personal details as asked by the insurance company
- Make an online payment either via credit or debit card in order to make the online purchase of a ULIP Policy.
- Offline ULIP Policy
When you purchase ULIPs directly from an insurance agent, the cost raises as compared to the charges of online ULIPs. Due to the applicable commission charges, the offline ULIP costs are higher. Additionally, the other painstaking procedure of the offline ULIP purchase is the involvement of heavy paperwork. Take a look at the entire process of purchasing a ULIP Policy offline
- Contact the agent of the insurance company
- Fill in the application form and submit all the important details
- Provide the insurance company with the mandatory documents
- Submit your health certificate
- Make the payment in order to purchase the ULIP Policy
What is the difference between online and offline ULIPs?
Due to the presence of ULIPs both, online and offline, there are times when investors often confuse them with one another. Since both these options are different from one another, it is essential to understand the difference between the two, separately. In order to make things easier for you, here’s a look at the major differences between these two
Why choose online ULIPs over offline ULIPs?
- Value for money
Due to the lack of involvement of any middleman like the insurance agent, the cost of buying a ULIP Plan online is typically less. Hence, the insurance companies avail these online ULIPs at low rates. The online ULIPs are approximately 30-50% cheaper than offline ULIPs.
- Claim settlement
Online purchase of the ULIP Policy helps the investors to get a better picture of the claim settlement ratio directly from the website. Opting for a ULIP Policy online means getting easy access to the insurance company’s claim settlement ratio.
- Transparency
The lack of involvement of the third party in online ULIPs keeps the entire process clean and transparent. However, in the case of offline ULIPs, the insurance agent is the whole and soul throughout the entire process. Since an agent is majorly involved, there are times when the agent might either mislead the policyholder or keep away things from him in order to gain maximum commission charges.
- Comparison
Before opting for an online ULIP Policy, every customer can make online comparisons on a tool called ‘aggregator’. This tool enables the policyholders to compare multiple policies on the basis of the costs, premiums, features, and ULIP benefits.
Now that you know these 4 benefits of online ULIPs, what are you waiting for? Invest in an online ULIP Policy since it promises a hassle-free investment experience. Before you opt for a ULIP Policy, choose a credible company and base the selection of the policy based on the ULIP performance. In the end, the best ULIP plan you get for yourself is going to make all your hard-earned money worth it due to its high returns and low costs.