Know How To Use A ULIP Calculator And Its Benefits

Individual investors can consider ULIPs as one of their greatest investing options. ULIPs are recommended for investors who want a safe insurance alternative with a lump-sum payment.
However, because there are only a few investment options accessible, it is common for investors to have difficulty making ULIP investments. When faced with such a circumstance, a ULIP calculator comes in handy, allowing investors to compare different plans available in the market and select the best ULIP. Investors can also use an online ULIP calculator to satisfy their long-term needs.

Know How To Use A ULIP Calculator And Its Benefits

Here are some things to know about the ULIP calculator and its benefits:

1. What Is The ULIP Calculator And How Does It Work?

When using online ULIP calculators, there are a few points to keep in mind. When purchasing one, it is critical for investors to have all of the necessary information, such as the type of funds, the frequency of premium payments, the rate of return, and the amount of money they wish to invest.

One investor can calculate the value of return by entering all of these facts into a ULIP calculator. Let's look at how to utilize a ULIP calculator step by step:

Step 1: Investors must first sign up for a free ULIP calculator online.

Step 2: After logging in, the investor must enter the amount of money that he or she wants to invest in the ULIP. The lowest monthly premium, Rs. 1500, is available to the investor.

Step 3: The investor must now choose a premium payment term. Premiums can be paid half-yearly, quarterly, monthly, annually, or in a lump-sum payment, depending on the individual's choices.

Step 4: Finally, he or she must decide on the policy's duration.

Step 5: The investor must then input the amount from the paid premium that he or she wishes to invest.

Step 6: The investor must choose a lock-in period for his or her investment at this point. A minimum 5-year lock-in period will be provided to the investor. Aside from that, the investor is urged to invest for a longer period of time in order to receive the best future returns.

Step 7 is the last step. The investor must select the fund into which he or she wants to invest in this step. Debt funds, equity funds, or a combination of the two are available to investors. Investors should compare the performance of many funds in the market before deciding on one. They must select a fund that has outperformed the market during the previous three years.

2. Benefits Of ULIP Calculator

By using the ULIP calculator, investors can gain access to numerous benefits. Let's have a look at some of the advantages that investors can enjoy:

Because they are easy and free, anyone can use ULIP calculators.

ULIP calculators make even the most difficult computations simple and straightforward.

Because ULIPs preserve their openness and flexibility, investors can be confident in the protection of their investments.

3. ULIP Calculator Features

The ULIP calculator has a lot of functions. Let's have a look at some of the ULIP calculator's most significant features:

Investors will have more freedom when using the ULIP calculator because they will be able to modify the variables based on the amount they need to invest.

Investors will be able to compute the exact amount because the online ULIP calculator is transparent while doing so.

Conclusion

When it comes to investing in ULIPs, ULIP calculators can make your life a lot easier. You simply must be aware of various limitations and exclusions on the sum assured in the event of permanent disability or death (of the policyholder) as well as the associated charges, as these can have an impact on the return value you expect as an investor.

Also read- How To Select Best ULIP According To Your Risk Portfolio?

A Detailed Comparison Between ULIPs And SIPs

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.