For the times when you wish to stay secure ULIP plans are the ones that offer you the same. However, while getting a ULIP plan, a thing of crucial importance involves the knowledge of the policy premiums and the returns.
ULIP calculator is the tool that gives you the information about your policy premiums and the returns that they are going to give you in the future. An ample number of websites provide their customers with the facility of ULIP calculators that gives an estimate of the ULIP returns depending on the plan of the policy and tenure involved. There are some of the ULIP tools that not only serve their customers by giving them the return estimate but also allow them to compare the different policies and help them choose the best ULIP plan.
Why to use a ULIP calculator?
ULIPs are one of the best ways for the investors who look forward to achieve future returns in addition to the life cover and tax benefits. Investing in a ULIP plan is one of the safest ways to invest for forthcoming time. With enormous amount of insurance companies with number of different plans and policies, it has become difficult for the investors to find the best deal. That is exactly when the ULIP return calculator comes to your rescue helping you to the most beneficial deal for you with maximum future returns.
How to use the ULIP calculators effectively and efficiently
While now that you know how efficient these online ULIP calculators are to make the right purchase of a ULIP plan, you must surely be wondering how to use them? Huge mathematical figures might surely be revolving around in your head. If yes, it is time to stop thinking about the same because using these ULIP calculators is even easier than you could ever imagine. You simply need to put in your personal details like your name and birth date.
Once you are done with it, the next step involves, filling in the premium amount that you can pay. Later, select the frequency of these premiums and for how long you want your policy to last that is the tenure of the policy. Lastly, you will be required to enter the percentage of the total fund. Once you are done with entering the above listed details you can easily find the exact rate of return that you will be achieving in future through the ULIP plan.
Here is a step by step guide to how to use the ULIP calculators
- The first and the foremost step involves the investor to find a trustworthy source that offers the facility to use the ULIP calculators for free. Once you succeed in that, start filling up your personal details including your name, birthday and smoking habits.
- For the next step, you need to fill in the amount of money that you wish to invest into the ULIP plan. This amount can also be termed as the premium amount of the ULIP plan. Make sure to keep in mind the expenses and liabilities before you fill in this amount. Filling a realistic amount that is easier to pay throughout the tenure of the policy is considered the right choice.
- For the third step, as an investor, you need to select the frequency of the payment of the premium amount intended against your ULIP plan. You can choose this as per you comfort and the amount of the plan. You can go for onetime payment, annual payments, quarterly payments or monthly payments. Keep in time the tenure of the plan to select the frequency of the premium payments.
- Followed by step 3, the next step involves the selection of the time period of the ULIP plan. This step should be filled in with care after analyzing your interest and capability to stay in the investment. Once you are done with the same, you can choose the time period for the plan.
- For this step you will need to perform a little bit of Mathematics. Subtract all the applicable charges from the premium payment as chargeable by your ULIP plan. Now, you will have to select the percentage of premium that you want to invest in the life insurance coverage and the fraction that you want to keep as the investment funds.
- Pick a choice as to where you would like to invest. Most of the ULIP plans allow the investors to invest in equity or debt instruments or sometimes maybe a combination of both of them. Do not make a decision in a hurry, analyze the past performances and then make a decision for the same.
- The last step of the procedure involves the investor to select the lock-in period of the investment. The minimum lock-in period that a ULIP plan offers is 5 years so you have to select at least 5 years of the time period. However, on a relatable note, the experts suggest the investors to select a longer lock-in period. The reason for the same is that the longer the lock-in period, the better are the result. Hence, in order to get the best ULIP benefits, it is recommended to opt for a higher lock-in period.
With this step-by-step guide now you know how to grab the maximum returns from a ULIP plan by using the free ULIP return calculator.