How To Buy ULIPs Online 2021?
Published On Nov 26, 2021 10:00 AM By InsuranceDekho
Table of Contents
ULIP, or Unit Linked Insurance Plan, is a type of life insurance plan that combines investment and insurance benefits. A ULIP provides you with the opportunity to build wealth while also providing you with the security of a life insurance policy. Unit Linked Insurance Plans, or ULIPs, are among the preferred options for securing your long-term life goals.
With the number of untimely deaths on the rise, life insurance has become a necessity. Purchasing a life insurance policy necessitates the expenditure of financial resources, which are always limited. What if you could get the protection of life insurance as well as market-linked returns?
Return on investment is as important as achieving long-term life goals such as children's education, purchasing a dream car, or owning a home for which you have made an investment. A unit-linked insurance plan, or ULIP, may assist you in accumulating wealth to achieve life goals while also providing life insurance protection. ULIPs are currently one of the most popular investment options in India's financial markets.
How To Buy ULIPs Online in 2021?
Here is a way to invest in ULIPs online and a few advantages of it:
1. How Do I Buy An ULIP Online?
- Fill out the following information: Give us your name, phone number, gender, and birthdate. To see what quotes are available, click the 'View Instant Quotes' button.
- Insurance Quotes Comparison: Based on the information provided, you will be provided with various ULIP insurance quotes. Compare the plans on offer and choose the one that best meets your needs.
- Adjust the sum assured and the policy term after selecting your ULIP: Once everything is finalized, pay the premium using net banking or a debit/credit card.
- Submit Required Documents: Submit required documents such as photo Identity proof, proof of address, age evidence, and a passport-size picture, as well as required health records.
2. Benefits Of ULIPs
The following are the main advantages of ULIPs:
- Life Insurance with Savings - ULIPs offer both life insurance and savings.
- Tax Benefits - Premiums paid for ULIPs are tax-deductible under Section 80C of the Income Tax Act of 1961, up to a maximum of Rs. 1.5 lakh. Furthermore, the maturity/death benefit received under the ULIPs is tax-free under Section 10(10D) of the Income Tax Act of 1961.
3. Types Of ULIPs
The following are the various types of ULIPs based on the funds they invest in:
- Equity - An investor's money is used to purchase equity shares in one or more companies. It is an excellent option for investors with a high-risk tolerance.
- Debt - In this category, funds are invested in debt instruments such as corporate bonds, government bonds & securities, debentures, and fixed income bonds. While the risk is moderate to low, the returns are also moderate.
- Liquid Funds - This ULIP type is ideal for meeting short-term financial objectives. The funds of the investor are held in highly liquid money market instruments in this case. In addition, the maturity period ranges from a few weeks to months.
- Cash Funds - Cash funds are the ULIP type that offers low returns and is ideal for investors who do not have a high-risk appetite.
ULIPs combine the strengths of premiums with industry rates of return. While other insurance plans offer savings economic advantages, the rates of return are slightly lesser considering the nature of the good or service. ULIPs could provide returns that really are typically higher than other private insurance in the long term if you engage in the financial markets in a structured way over a long period of time.
Also read - Are ULIPs Risky Invesment Option For Me?
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.