Unit Link Investment Plans is one of the most lucrative investment options for investors who wish to attain capital investment along with insurance benefits. When you get a ULIP plan, a part of your premium is devoted to providing you with a life cover, while the other part is invested in funds. The returns from these investments are then credited to you as maturity benefits once the plan’s tenure is over.
But before you invest in a ULIP plan, knowing ULIP full form it’s always a good idea to use a ULIP calculator to get an idea of the level of returns you can potentially earn on your premium amount. This will help you analyze how well a particular ULIP fits in your entire financial plan.
Here we talk about this ULIP Calculator in detail to help you understand everything you need to know about it.
What Exactly Is A ULIP Calculator?
A ULIP Calculator is nothing but an online tool that’s available to you for free. You can utilize this tool to get an approximation of the returns that you will earn if you invest in a particular ULIP. Here’s all the information you need to provide for a ULIP Calculator to determine the expected returns.
- The amount you would be investing
- The tenure of your ULIP
- The frequency of the premium payments
- Your ULIP scheme
Why Should You Use A ULIP Calculator?
- It’s Simple to Use
ULIP Calculators are incredibly convenient tools that don’t need any time or effort to use. They are excellent for beginners who are just starting out with investments and need guidance to be able to understand the best plans for themselves. These calculators need you to enter a few simple details, and they effectively approximate your returns, allowing you to make informed decisions.
- They are Free of Cost
Another thing that makes using a ULIP Calculator a smart choice is that it costs practically nothing. These tools are available online, and you can avail them without having to pay anything.
- They Let You Choose The Best ULIP Plans for Yourself
With thousands of ULIP Plans available in the market, it can be difficult to find the one that aligns with your financial goals. This is where a ULIP Calculator can be useful for you. Since you can get a clear approximation of the returns your ULIP Plan will earn you, you can be informed about which one to pick for your goals.
How to Use a ULIP Calculator: A Step by Step Guide
A ULIP calculator is an incredibly user-friendly tool that can be used without any hassle. The following guide will help you understand how to use this calculator.
STEP – 1: Log in to any one of the many ULIP Calculators available online. These are available in bank portals, websites of insurance providers and other financial institutions. You can find one here –
Some of these tools will ask for your personal details like your date of birth or gender, and some might even require you to share some lifestyle-related details, for instance, if you’re a smoker or not.
STEP – 2: Once you’ve inputted all these details, you would be asked to specify the preferred premium amount that you would like to invest in your ULIP Plan.
STEP – 3: You would then be required to select the frequency at which you would like to pay your premium. You can choose to pay this premium on a monthly, quarterly, or yearly basis based on your financial situation and goals. You might even want to go for a single lump-sum payment plan.
STEP – 4: Then, you would have to select the tenure of your ULIP. This tenure needs to fit well with your financial goals and life plans. You must remember that your money would remain locked in for the entire tenure of the plan and make well-thought-out decisions.
STEP – 5: Finally, you would need to specify the type of funds that you wish to invest in. You could choose between equity or debt funds or even go for a combination of both. You must remember to mindful while making the selection of the fund you wish to invest in. You can check out the performance record of the fund to analyze how well it has been performing in the past.
Once all these details have been entered, the ULIP Calculator will be able to help you with the approximate returns on the basis of the preferences you’ve selected.
So this was everything that you should know about a ULIP Calculator. This is an excellent tool that everyone must use to be able to figure out the best ULIP Plans in India. Whether you’re just starting out with your investments or have been investing for some time, knowing investment guidelines and tools can be a great help for you.