ULIP or unit-linked insurance plan is a type of investment plus insurance plan. It offers the policyholder an opportunity to invest and enjoy life insurance coverage. In a ULIP, a small portion of the premium is used it avail insurance coverage while the remaining portion is invested in various funds as per the investor’s preference. Unlike other plans, ULIPs offer both insurance and investment benefit under one single integrated plan.
ULIPs offer flexibility when it comes to investment planning. It allows you to safely balance and maintain your funds in equity and debt funds. With options of switching between funds as per the market performance, ULIPs provide the opportunity to minimize risk and maximize gain.
What is A ULIP Calculator?
Before investing in a ULIP, one should be aware of the market performance as well as their financial goals. Also, they must evaluate the returns generated by ULIPs. Then, they must opt for the plan that fulfils their investment goals.
When you have a fair idea of the investment returns offered by ULIP schemes, only then you can invest. In order to get a rough estimate of ULIP return on investment, you can use ULIP calculator. It will allow you to get an idea of the returns which will help you make an investment decision.
ULIP calculators are available online and can be used easily by simply filling in the details. In a matter of a few seconds, it displays the result. This is how you get an estimate as to how much return you can expect.
Additionally, these ULIP calculators help you calculate the future value of an investment, post-tax percentage rate of annual returns on investment and many other such calculations.
Note- You need to enter key details such as investment amount, the frequency of said investment, the duration for which you want to make an investment, etc. in the ULIP calculator. You will receive an estimated return. Based on the result, you can decide which plan is best suited to you and which will yield maximum returns in the future.
How to Use A ULIP Calculator?
The individuals who want to invest in ULIPs can get an idea of the revenue generation of a particular ULIP plan. Also, having a rough estimate of the return on investment will prepare you for future investments. Additionally, when you know your investment returns, you can plan how you will utilize your money after completion of your investment tenure.
Using a ULIP calculator is very easy and simple.
- Type ULIP calculator and conduct a Google search. Click on the preferred search result.
- Fill in the relevant information like type of ULIP, total investment amount, your name, age, the term for which you have taken the insurance product for, etc.
- Click on the ‘calculate’ button.
By completing these easy steps, you can get an estimate of the return on investment. You can compute and compare the estimated return of best ULIP plans.
Advantages of ULIP Calculator
A ULIP is an excellent option for the investors looking for a long-term investment avenue. Many investors (be it experienced or beginners) invest in ULIP to accomplish their long-term investment goals. That being said, ULIP calculators aid individuals to evaluate their estimated returns.
Importance of ULIP Calculator
ULIP calculator can be used for any investor who wishes enjoy best of both the worlds i.e. investment and insurance. The calculator is easily available online. It helps to analyse the plans and select the one which will benefit the policyholder.
In order to provide you with the most accurate information, some calculators might need more information as compared to the other ULIP calculators. Also, depending on the type of ULIP you may need to provide specific information like gender or smoking habits.
In a Nutshell
ULIP calculator’s simplicity and resourcefulness make it a vital instrument for potential investors. It helps to make the investment easy regardless of the individual’s investment history or availability of investment fund.