Understanding only the technicalities of a ULIP Plan isn’t enough. This is because it is always important to know your ULIP premium amount and returns along with your ULIP Plan. And this is only possible with the help of a ULIP Calculator which eventually makes things simpler for you.
As the name suggests, a ULIP Calculator is a tool used to calculate the maturity amount based on the investment values and returns expected by the investors in the future. Depending upon the premium amount and tenure of your plan, this calculator can calculate the returns offered by that ULIP plan. So if you wish to ease out your comparison and buying ULIP process, check out how to use a ULIP Calculator:
Why should I use a ULIP Calculator?
The best way to find out all your ULIP related calculations is by using an online ULIP Calculator. This is because it provides multiple benefits to its investors. Take a look at a few benefits of the same:
- Ensures uncomplicated and hassle-free process.
- Provides accurate calculations and delivers the expected results.
- Helps the investors to take calculated decisions regarding the funds.
- Ensures the investment is safe.
- Compares multiple returns in order to make a logical choice.
Steps to follow for the right use of a ULIP Calculator
Before using the calculator, keep all the mandatory details like the investment amount, the type of fund, and premium payment ready. Once you enter these details, calculate the accurate amount of the rate of return on the investment.
Step 1 – First things first. Log in to the free online ULIP Calculator.
Step 2 – Enter the amount you want to invest in the ULIP Plan.
[Note – See to it that you at least invest a minimum amount of Rs. 1500 per month.]
Step 3 – Choose the frequency of your premium payment.
[Note – This premium payment can either be paid as a lump-sum amount or in installments i.e. quarterly, monthly or annually.]
Step 4 – Select the policy tenure.
Step 5 – Enter the amount of the premium payment which you want to allocate for the investment.
Step 6 – Select the lock-in period of your investment.
[Note – Ideally, ULIP Plans have a lock-in period of minimum of 5 years. However, it is advisable to invest in the longer lock-in period in order to get optimum results.]
Step 7 – Finalize the type of funds you wish to opt for.
[Note – You have different options of choosing from instruments, debt fund or you can select a combination of the two. Before you decide on it, check the past performance of the fund you wish to invest in. For maximum benefits, invest in the funds that have performed well in the past 3 years.]
Now that you know how to use a ULIP Calculator, don’t think twice about why I should invest in ULIP. Rather, think about how much easier your life would be with the help of a simple tool that can easily fulfill your dreams tomorrow.
With the right use of a ULIP calculator, you can not only ensure accuracy but also make effective investment decisions. In addition to this, ULIP calculators may still remain the best instrument for a longer run in order to invest safely and enjoy life cover and tax benefits completely.