How to Manage Your Online ULIP Policy While Sitting at Home?
Due to the internet age, everything right from shopping for clothes to getting money transferred has become easy. After being spoilt with today’s technology, individuals prefer to carry out every feasible activity online and save their time and energy. Money matters are no different and so is managing your Unit-Linked Insurance Plan (ULIP) which is one of the best online product available. You can easily oversee and operate your insurance policy right from the comforts of your home with the help of internet. So, let’s understand how you can manage your ULIP insurance online.
5 Ways You Can Manage Your ULIP Policy
1. Switch Completely to Online Mode
You can easily switch completely to the online method of purchasing a plan and managing it. Most insurance providers enable you to make your premium payments online via various modes like internet banking, UPI payment, debit or credit card payment, etc. You also operate your ULIP plan’s fund and switch between asset classes via the insurer’s online portal. With this, you do not have to step outside for completing the payments or switching funds. In case you have particular doubts regarding your plan, you can contact your insurer’s customer care executive to clarify the difficulties.
2. Keep Track of the Growth of Your Money
Even if you aren’t financially savvy, you have to learn about the asset classes and the risks and returns rates. With this, you will be able to keep track of how your money is growing and determine the performance of the invested fund. In case the returns don’t seem beneficial, you can consult your insurer and try to switch funds or employ a strategy. The lock-in period for ULIPs are 5 years and thus, you can plan the ULIP returns in 10 years accordingly based on your financial goal.
3. Switch Between Equity & Debt Funds
You could also try some ULIP investment strategy like asset allocation where you allocate your premium in a fixed proportion between debt and equity funds. This enables you to earn returns based on your financial goals and risk appetite. You can also switch to equity ULIP funds if you have high exposure to debt funds when the rates are low in the market. By employing specific strategies, you can earn better gains even during the lows of the market.
4. Withdraw Maturity Amount Online
If you choose to liquidate your fund on the maturity of the lock-in period or after an extended time, you can choose to opt for online withdrawal. The maturity amount will be credited to your account directly. For this process, you need to fill out a discharge form available on the insurer’s website and provide your personal details. Some documents will have to be attached to the form depending on your insurance provider. By providing your bank details, the maturity proceeds will be transferred to the given bank account.
5. Tax Filing
You can enjoy ULIP benefits where the premiums paid towards the policy can be claimed under Section 80C of the Income Tax Act, 1961. The maximum amount that can be claimed is INR 1,50,000 per financial year. The maturity or death benefit can also be claimed under Section 10(10D). You can claim these income tax deductions online by visiting the official website (incometaxindiaefiling.gov.in). You will find 7 Income Tax Returns (ITR) forms and depending on which category you fall in; you can file for the respective ITR form.
With the above tips, you can easily manage your Unit-Linked Insurance Plan online without any hassle. You can always use a ULIP plan calculator and contact your insurer to find out online alternatives for specific processes to make it effortless.