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A Unit Linked Insurance Plan (ULIP) is a nifty financial product to consider. It makes for a good long-term investment due to a host of its benefits such as life cover, investment returns, tax* saving, flexibility, etc.
If you’re wondering how to buy a ULIP plan in India, then there are two ways. You could either buy a ULIP plan online directly through the insurer’s website or you could go to an agent in person and buy it offline. Before you make your decision, though, it’s essential to consider the advantages that buying a ULIP plan online has over offline ULIP plans.
One of the biggest advantages when comparing online vs. offline ULIP plans is the cost. When you buy a ULIP policy offline, there are intermediaries such as agents involved. This naturally increases the premium you have to pay for the policy. That is because the agent’s commission and other distribution costs need to be covered.
However, when you choose to opt for online ULIP plans in India, it’s a direct exchange between you and the insurer. This does away with the intermediaries and a larger chunk of your premium can be allocated to the fund. Hence, online ULIP plans are comparatively cheaper and more affordable than offline ULIP plans.
Another point to consider when comparing online vs offline ULIP plans is the time and documentation that is required for each. The process of getting an offline ULIP plan is tedious in comparison and involves going to the insurance company, speaking with the agents, and a lengthy documentation process.
In contrast, when looking at good ULIP plans online, the process of buying them is as simple as choosing the policy that best suits your needs, filling in your details, and scanning your KYC and other relevant documents.
Convenience and preference
When you look at the online ULIP plans in India, you get to choose when and where you want to do so. It can be on a Sunday when both you and your spouse have time to go over the ULIP plans and make a decision or it can be late at night once you’ve checked off your routine tasks. You do not need to plan your daily schedule around this purchase since you don’t need to step out of your house and go someplace else keeping in mind the office timings.
If you are somebody who likes to think over a financial decision a few times before finalizing it, buying an online ULIP policy will allow you to take your time and go over the ULIP plan charges, benefits, etc. as many times as you like without hesitating or being pressured by an agent to make a quick decision.
Another edge that online plans have when comparing online vs offline ULIP plans is the tools and space for making a better decision. When you choose to buy a ULIP policy offline, you’ll only get to see the policies that the agent shows you. In some cases, it may be possible that agents may push certain policies over the others for their commission.
Conversely, when looking at ULIP policies online, you have the option to look at several different plans and carefully compare the benefits, features, and terms of each to deduce for yourself which ULIP plan is better suited for you. You get to go deep in research and analyze and think over all the aspects that matter to you the most. This allows for better decision-making and a strategic buying decision.
As you can tell, the advantages of online ULIPs over offline ULIPs are significant. It’s also helpful to have a handy checklist by your side when you browse through different ULIP plans online in India to know what to look for. Here are some of the benefits that good ULIP plans offer.
1. Multiple fund options
The reason ULIPs make for a good long-term investment is because of the dual benefits of life cover and wealth creation that they offer. The investment aspect of ULIP plans can only be capitalized when the ULIP policy you opt for provides you with several fund options. Tata AIA Life Insurance Fortune Maxima (UIN -110L113V04) policy is a non-participating, unit-linked, whole-life individual savings plan that offers you 11 different fund options to choose from. You can make full use of such a variety and range offered by picking one or all of the funds as per your investment strategy.
2. Fund switching facility
Depending on your life stage, age, and financial obligations, your financial goals may keep shifting. Hence, it is essential that the ULIP plan you opt for offers you a fund switching facility multiple times in a year, free of cost. Fund switching allows you to switch between funds—equity, debt, balanced, etc.,—in the same ULIP policy.
In addition to changing financial goals, the market conditions are also volatile. With the fund switching facility, you can switch between funds to ensure that your wealth creation goals stay on track and don’t take a hit.
When looking at online ULIP plans in India, it’s important to consider a plan that offers you flexibility on a variety of things. For instance, the flexibility to choose your premium payment term as well as your premium payment mode is beneficial to tailor the policy as per your preferences.
Fortune Maxima (UIN-110L113V04) by Tata AIA Life Insurance gives you single premium & 7 different limited pay options to pick the right premium payment term for you. You can either choose to pay it in a lump sum or choose anywhere between 7 to 20 years to pay the premium. Additionally, you can also choose the premium payment mode and frequency—single, annual, semi-annual, quarterly, or monthly.
Now that you know all the advantages of online vs. offline ULIP plans along with the features to look for in good ULIP plans, you are well-equipped to make a prudent decision and add a beneficial investment to your financial portfolio.
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Insurance cover is available under the product.
The products are underwritten by Tata AIA Life Insurance Company Ltd.
The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.
For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.
This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.
Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.
*Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.
IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER
THE LINKED INSURANCE PRODUCT DO NOT OFFER ANY LIQUIDITY DURING THE FIRST FIVE YEARS OF THE CONTRACT. THE POLICY HOLDER WILL NOT BE ABLE TO SURRENDER/WITHDRAW THE MONIES INVESTED IN LINKED INSURANCE PRODUCTS COMPLETELY OR PARTIALLY TILL THE END OF THE FIFTH YEAR.
Past performance is not indicative of future performance.
All investments made by the Company are subject to market risks. The Company does not guarantee any assured returns. The investment income and price may go down as well as up depending on several factors influencing the market.
Please make your own independent decision after consulting your financial or other professional advisor.