Advantages of online ULIPs vs offline ULIPs

A ULIP or United Link Investment Plan is an investment vehicle that gives you an added advantage of an insurance cover as well.

Several insurance companies offer ULIP plans where policyholders can choose how much and where they want to invest. You can always use online ULIP calculators to know the right investment plan based upon your annual income, age, and other factors.

ULIP comes with multiple benefits such as:

  • Fund switch lets you move funds if you want to switch your investment to a different fund.
  • Top-ups help you take a customised plan based upon your requirements. You can take riders for health cover, accidental cover, and critical illness cover. 
  • Fund withdrawal can be done after the lock-in period is over. However, ULIPs tend to give you maximum returns when you invest for a longer period.
  • Affordability is another major benefit of ULIPs. You can invest as low as Rs. 1,000 per month in a ULIP.

Now, you can buy ULIPs online and offline. If you prefer the online option, you can directly buy from an insurance company website or app. In an offline purchase, you need to get in touch with an insurance agent, who will guide you with various policies and plans. The agent would also help you with the documentation regarding the policy you choose to buy as well.

Let’s look at the some of the key advantages of online vs offline ULIPs:

  • Cost: Every time you choose to buy a service offline, you are contacted by an agent who describes the policy to you, helps with the documentation and KYC process and charges a fee.

On the other hand, if you decide to buy ULIP online, there is neither an agent nor agent fees. You can buy ULIP directly from the insurer here.

  • Convenience: In offline ULIP purchases, you might have to visit an agent’s office multiple times for processes including documentation.

But, when you buy a ULIP online, you can browse plans on the insurance company’s website or app and select a plan that works for you.  

  • Comfort: This too is a major advantage of buying a ULIP online.Whenever, during your policy, if you have any doubts, you can always reach out to the insurance company. Since all your insurance related accounts are online, getting help could be easier compared to an insurance plan you bought offline.
  • Comparison:  Insurance companies provide numerous ULIPs. With so many options available, it is a must to do a comparison between various policies and then pick the most suitable one.

In offline purchases, you might be influenced by an agent’s choice. But, if you are buying ULIP online, you can explore multiple plans, compare them, and decide on a plan that suits you the most.

ULIPS not only provide you a life cover, but they can also help you save for your retirement, kids’ education, dream home, etc.

The fund switch feature in ULIPs gives you the power to invest your money the way you want, depending upon your risk appetite and investment choices.

So, if you are planning an investment anytime soon, don’t forget to research and understand all the long-term and short-term aspects of the policy before making any transactions.

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