What makes online ULIPs a must have financial product in your portfolio

Online investment plans, insurance products, mutual funds and other financial products have been a game-changer for the industry in many ways. It has allowed financial companies to reach a larger customer base, spread awareness and educate consumers about their products and the financial industry as a whole.

For instance, anyone looking for financial information on ULIP investment can just type, “Why should I invest in ULIP?” and get hundreds of answers from experts and investors. Not all information available online is reliable but at least now an investor has truckloads of information on ULIPs to research, read and understand. Online financial products have also helped improve financial education and literacy in our country.

For example, if you look for information on Bajaj Allianz ULIPs on Finserv MARKETS, you not only get information on ULIPs but how it works, how to invest and answers to questions such as “why should I invest in ULIP?”

What are ULIP investment plans?

In simple words ULIP plans are insurance products with an investment component. It provides life insurance coverage like a traditional insurance plan and also gives you the option to invest in equity and debt funds. The best part is that you also get to decide where to invest and switch funds based on performance, returns, market conditions, etc.

In a unit-linked insurance plan or ULIP investment, each unit (called the NAV) held by the investor is linked to an underlying market-based product such as equity or debt funds. When an investor pays the premium for a ULIP, a portion of the money goes to providing life insurance cover for the investor and the remaining amount is invested in various debt and equity funds according to the investor’s preference. As the value of the underlying fund grows, it is reflected by an increase in net asset value (NAV). Therefore, you can avail dual ULIP benefits of life insurance protection and wealth generation to the insured.

Why should I invest in ULIPs online?

Cost-effective

Online ULIP investment eliminates the middlemen from the equation. Traditionally, unless you visit the insurance company’s office directly, ULIPs were sold by distributors or agents who were paid commissions for selling these products. The costs of these commissions were borne by the customer while paying his premium. But when customers buy directly from the insurance company’s website, there are no middlemen and hence the premiums are lower.

Online ULIP investment plans such as Bajaj Allianz ULIPs available on Finserv MARKETS are available with no allocation charges, free unlimited switching of funds and return on mortality charges. All these features and benefits make online Bajaj Allianz ULIPs one of the most cost-effective in the industry.

Faster

Imagine visiting an insurance company’s office or even meeting a representative over a cup of tea at your home. If you visit the office, you have to deal with traffic and then spend almost an entire day to finally complete the transaction. In case an agent visits your home or you visit the agent’s office, you again lose valuable time. That’s offline for you.

With online everything happens in a few clicks, unless you want to sit down and read about the product you are buying. Of course we suggest you do that but the transaction is completed in a matter of minutes, if not seconds. If you have already carried out the due diligence and are convinced that you are buying the right product, there’s no reason for you to delay.

No paperwork

Again, doing paperwork while investing in ULIPs can be tedious and you may misplace the physical copies of your receipts and ULIP investment documents. With online ULIP plans, receipts, proof of payment and certificates are readily available in digital format and you can access them any time you want.

Easy tracking and operation 

With online ULIPs it’s easy to track how your fund is performing with daily updates on NAV and other insights. You just need to login to track your account and switch funds according to your preference. Also, withdrawals, exits and top-ups can be done online.All these benefits make online ULIPs a must-have financial product in your investment portfolio. However, before you invest be aware of the ULIP charges that cut into your premium. The entire amount from your premium does not go into ULIP funds. Opt for ULIP plans that have the lowest charges and offer perks such as loyalty additions, enhanced returns and return of mortality charges.

Author: Eddy

Eddy is the editorial columnist in Business Fundas, and oversees partner relationships. He posts articles of partners on various topics related to strategy, marketing, supply chain, technology management, social media, e-business, finance, economics and operations management. The articles posted are copyrighted under a Creative Commons unported license 4.0. To contact him, please direct your emails to editor.webposts@gmail.com.