One of the most popular investment options for people who want to benefit from both investment opportunities along with life cover is a Unit-Linked Insurance Plan (ULIP). In a ULIP plan, the premiums you pay are invested in market-linked funds. However, if you lose your life within the duration of the plan, your nominee receives sum-assured benefits. Hence, offers two key financial benefits under a single plan.
What is a ULIP calculator?
This is essentially a free online tool that is also referred to as a ULIP return calculator. This tool can be used by investors to get an accurate estimate of the returns they might expect from a particular ULIP plan.
Here are the inputs that the ULIP return calculation tool needs to calculate the predicted returns:
- The sum that you intend to invest in your ULIP plan
- The duration of the ULIP plan that you’re considering
- The frequency of your premium payments
- The kinds of ULIP funds that you wish to invest in using your scheme
- The anticipated rate of return.
Why are ULIP calculators recommended for policyholders?
An online ULIP return calculator can be very helpful for investors and prospective policyholders prior to making an investment in a Unit Linked Insurance Plan. Before you invest your money in a ULIP, you should use this online tool for the following reasons:
- It is basic and straightforward to use
Calculators for ULIPs are straightforward devices that are easy to use. Using this online tool is a simple process, even for investors who are just starting to learn about ULIPs. All you need to do is enter the necessary information, then relax and let the ULIP calculator handle the labour-intensive calculations.
- It is essentially free
Since ULIP computation tools are online and cost nothing to use, using them is effectively free. You can access the calculator on the websites of several reputed life insurance companies for free. Therefore, prospective investors only need to visit the website of any supplier of investment services and provide the necessary information without spending a dime.
- It’s a very user-friendly tool
Online ULIP return calculator is not only incredibly user-friendly but also incredibly easy to use. You can continue with your investment plan without being interrupted because the entire process—from the input to the results—takes place quite swiftly.
- It facilitates comparing various plans
Before purchasing a Unit Linked Insurance Plan, prospective investors should use ULIP plan calculators as they may be used to analyse numerous plans at once. Investors can choose from a variety of plans on the financial market, each with a unique rate of return and set of ULIP perks. To determine which of the many ULIP plans available fits exactly into your investment budget and properly matches your long-term financial goals, you need to use ULIP calculating tools.
- It helps in making an informed decision
When you are using a ULIP calculator, you get an estimate of the returns you are likely to earn from your plan. It allows you to plan for the long haul by providing you with an estimate of the returns. Based on the returns you are likely to earn, and the risk involved in the funds of your choice, you can make an informed decision regarding your ULIP fund allocation.
What characteristics does a ULIP calculator have?
ULIP calculation tools are quite helpful for investors who are eager to park their money in Unit Linked Insurance Plans because they include a variety of unique features. Here is a closer look at some of a ULIP calculator’s key attributes.
- Calculation flexibility
When comparing the returns provided by various Unit Linked Insurance Plans, ULIP calculating tools allow a high degree of flexibility. Using this tool, you may run several simulations while modifying different factors, including the premium amount, the frequency of payments, and the investment tenure.
- Transparent calculation
The calculation used to determine the return on investment is made apparent to the user when using a ULIP calculator. There are no ambiguous or unclear parts of the computation because the investor is given thorough access to all the information about the investment scheme under consideration.
- Analysis of life goals
To attain their life goals, investors can analyse their total financial planning with the aid of ULIP return calculators. Based on their risk tolerance and investment potential, one can use the calculator to get an idea of how much corpus they would need to achieve their life goals.
- Quick assessment
You may quickly see how your investment will grow under the ULIP policy you are considering by using ULIP calculating tools. Since the tool considers the current rate of return on investment, the assessment is also as close to being accurate as possible.
- Total control over the decision-making process
Additionally, you get to have total influence over the decision-making process. The information needed to determine the return on your investment is entirely up to you as the investor.
- Easy to use
When you are using a ULIP calculator, you may find that doing the required calculation is quite simple. You simply need to enter the amount you need to achieve your goal, the duration you are likely to stay invested in, and the types of funds you are comfortable investing. By entering the required information, you get the amount you need to invest to achieve the desired goal. The tool is easy to use, and anyone can quickly access it online.
ULIP plan calculators provide investors with numerous benefits. By taking just a few minutes to evaluate and compare different ULIP products, you can optimize your investment gains while staying within your budget. With the help of ULIP calculators, you can make informed decisions regarding your investments, ensuring maximum returns on your money.