Let us understand what ULIP is. United Link Insurance Plans have the advantages of being both an insurance product and an investment option, providing protection cover and an investment opportunity that may be the best option for the generation of today, which is constantly looking to grow their money so they can easily achieve their future goals. The objectives could have to do with retirement planning, children’s education, marriage, etc. But one thing to keep in mind is that there are risks associated with making investments in the stock market.
Now that e-commerce has taken off, we can purchase financial items online. ULIPs were formerly offered through agents, and these plans were referred to as offline ULIPs. However, these policies are now offered online and are referred to as online ULIPs.
Online ULIPs have several advantages over offline ULIPs.
- Cost effective: It is said that online ULIPs are less expensive than offline ULIPs for the straightforward reason that there is no intermediary and the entire premium payment is invested in the fund. While offline ULIPs also include distribution costs because they are offered through agents at company offices, online ULIPs incur expenditures such as policy administration costs, fund management fees, and mortality charges. ##
- Time-saving: Purchasing a plan online saves time because you can do it whenever it’s convenient for you, but offline ULIPs need you to take time away from your busy schedule to visit the company office, speak with your agent, present the necessary paperwork, and other time-consuming steps. For Online ULIP, you can visit the firm website, enter your information, and either email or courier all of your scanned documents to the address specified.
- Thorough research possible: After doing extensive research, you purchase an online ULIP. You carefully study everything and consider whether this is the best policy for you in light of your needs. This indicates that your choice is the most appropriate for your needs. Yet, you purchase offline ULIP from an agent, indicating that your own preferences are put on the back burner.
- Easier to purchase ULIPs online: You have 24/7 access to the insurance companies online resources. On the internet, there is no closing time. If you pick an offline policy, you can only do so for a limited time and between 5 and 6 days each week.
Yet if you are employed, it will be challenging for you. This is when purchasing ULIP online can be beneficial.
Online ULIP allows you to access the website whenever you choose, including on Sundays.
When it comes to online ULIPs, a variety of online tools are available to compare different ULIPs and assist you in selecting the best one. Also, you may read reviews and ratings for the product you are purchasing online, which is not possible with offline ULIPs.
Online ULIPs are a terrific product, and since consumers are increasingly using the internet for everything, you might want to consider this as your next medium.
The ULIP calculator is a simple, convenient and easy-to-use tool that you can use to predict the return you might get at maturity by entering a few details.
What Justifies Purchasing ULIPs?
- The premium funding advantage
If you chose this option, should you pass away during the policy’s term:
- a) Your family will get the assured sum as a death benefit.
- The firm will pay the remaining premiums as if you were still alive. C. The policy continues as intended until maturity, at which point your family will get the maturity value.
- Get life coverage
Moreover, ULIPs provide you with the choice to extend your coverage for up to 99 years. You will get access to this feature through Canara HSBC Life Insurance’s Century option of Invest 4G.
- Partial withdrawals
After the five-year lock-in period is over, you can make partial withdrawals from the fund value without paying any further fees. When you need fast cash, these can be of assistance to you. These in-part withdrawals are also tax-free. **
- Tax Advantages
Both at the time of investment and at maturity, ULIPs are eligible for tax benefits. According to Section 80C of the Income Tax Act, the premium you pay for a ULIP is deductible up to Rs 1.5 lakh each year.
Furthermore, under section 10(10)D of the Income Tax Act of 1961, the maturity sum or death benefit that you receive may be tax-free. It is important to understand well what ULIP is. You can also use a ULIP calculator to estimate future returns and the value of a ULIP investment.
