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How to calculate returns on ULIP?

With the market being available with a host of unit-linked insurance plans, it becomes bewildering to select a suitable policy. Thus, a ULIP calculator serves its purpose of computing investment returns. It’s a beautiful tool that helps investors calculate the premium amount and find the returns. A host of financial websites offer this facility.

For investors, they can choose a calculator based on the premium amount as well as the tenure of that insurance policy. This calculator can offer the appropriate ULIP plan with maximum returns. On that note, let’s allude to how it is possible to calculate investment returns through this calculator! Let’s get started!

Using a ULIP Calculator: How to Proceed?

Before using the calculator, it’s fundamental to consider a set of essential things, including:

§ Fund type

§ Premium payment

§ The total amount of money to invest

§ Possible rate of the return

These details are required to calculate the value of return on investment through this calculator. If you want to know further about the steps of using this calculator, here’s presenting the procedure in detail.

1. Firstly, the investors must log in to the free version of the online ULIP calculator.

2. Entering an investment amount is the second consideration.

3. Selecting the premium payment’s frequency is the third step to perform. Someone can pay the premium amount in monthly, quarterly, or annual instalments.

4. Choosing the policy’s tenure is the fourth step that investors require performing.

5. The insured should enter the premium payment amount, the one that they wish to allocate for investment.

6. Selecting a lock-in period becomes important in step six. The ULIP plans provide a minimum of a 5-years lock-in period. But it is always advisable to invest for a more extended period in order to yield maximum return.

7. Choosing funds where an investor aims at putting their money is the next step. The investors have the ability to select investing in a debt fund, equity instruments, or even a combination of both. Nonetheless, before investing, it’s significant to determine the performance of the fund.

What’s Next?

After following the steps as mentioned above, it’s imperative to file important information like personal details (gender, whether you smoke or not, date of birth, and more).

Using a ULIP calculator is extremely hassle-free and seamless. You do not require spending money to get information concerning the investments. But it’s of paramount importance to understand the amount of money. For this reason, it is pivotal to meet the forthcoming financial goals. Additionally, investors also can change variables. When it comes to computing returns on investment, a calculator also computes the inflation rate (estimated).

The Bottom Line

A ULIP calculator offers a slew of features for investors to create corpora and enjoy tax benefits. Given the safe and hassle-free experience of using this calculator, investors can simplify financial calculations’ complexities. Using the calculator also benefits the insured to select the goal-based fund option. Through this calculator, investors get an opportunity to make safe investments. Now that you understand the use of this calculator, when will you invest in a unit-linked insurance plan?


Brian Harris

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