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Here’s Your Step-by-Step Guide to Using a ULIP Returns Calculator

Step-by-Step Guide to Using a ULIP Calculator

ULIP or Unit Linked Insurance Plan is a popular investment option in India providing people double benefits - insurance protection and wealth creation. To buy a ULIP plan, the buyer must pay premium amounts in the form of either a lump sum or in instalments.

But before investing, it is always advisable to check whether the plan suits your need and capacity. This is where the ULIP calculator comes into play. A ULIP returns calculator is a special tool that insurance buyers can use to calculate their premium amount and determine the ULIP returns.

What is the use of the ULIP calculator?

As the ULIP investment option provides people with dual benefits, it is considered the best investment option with the opportunity to earn maximum returns. However, multiple plans are available in the market. So, it often becomes challenging for investors to find which plan would be sustainable for them.

So, someone who is seeking a secured investment plan with profitable returns can make use of a ULIP returns calculator. It enables the investors to calculate the money they require to invest in the plan to accomplish their short-term and long-term financial goals.

Simple Guide to Using ULIP Calculator

Using the ULIP returns calculator comes in handy if the investor has already figured out a few basic details. Like how much money they want to invest initially and the premium payment suitable for them. The investors must also analyse the fund type and the expected return rate they are aiming for.

By entering the above details, one will be able to calculate precisely how much return they can expect from the ULIP plan. Now let’s drive our attention to the step-by-step guide to using the calculator:

  • Step 1: First, log in to a free online ULIP returns calculator service from a trustworthy source.
  • Step 2:After logging in, the source will require you to enter your preferred investment amount in the ULIP plan. According to their suitability, investors can choose the minimum premium amount they can commit per month (starting from 1500/month in most cases).
  • Step 3: Next, the investors will be asked to enter the frequency of the premium amount in the ULIP returns calculator. Remember to select the frequency, keeping in mind your financial stability. It includes lump-sum, monthly, quarterly, or annually.
  • Step 4: The next important decision you have to make is the period of the ULIP plan. It would help if you based this decision on the future objective or goals you are planning for yourself.
  • Step 5: After successfully entering the tenure period, the ULIP returns calculator will ask you to enter the amount they want to allocate to the plan from their premium.
  • Step 6: The insured will also have to select a minimum lock-in period starting from 5 years. However, according to experts, one must keep in mind that the longer the lock-in period is, the more profit they can expect from the ULIP plan.
  • Step 7: The last step is selecting the funds the investors want to put their money into. It means they can either invest in equity, debt fund or a combination of both. However, before making the decision, make sure to check the performance of the market to ensure profit.

After you are done, complete the process by entering personal details like your name, whether they are a smoker or not, DOB and other basic details. The ULIP returns calculator will show the amount of return you can expect to accumulate by the ULIP plan immediately.

Conclusion

ULIP calculator being a free, hassle-free and easy tool acts as a great option to avoid loss. It makes sure the ULIP investment option you are choosing serves the purpose of becoming a safety net for your family and offer maximum returns.

Disclaimer:

Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time
The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.

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