How to Plan Your Investments with a ULIP Calculator?

When you are planning your finances, you will come across a plethora of options to secure your life, along with other options to multiply your income. When you are trying to strike a balance between security and investments, a plan can do both for you. 

Unit Linked Insurance Plan (ULIP) is the perfect plan since it offers the best of both worlds. It is both, life insurance and an investment plan, where, similar to life insurance, you are required to pay premiums. However, the premiums are utilised a bit differently in a ULIP. Half of the premiums you pay are used towards securing your life, while the remaining half is invested in allocations that you choose. You can also avail free partial withdrawal in ULIP after the lock-in period of five years. This ensures that you have funds to access during a monetary crisis.

A ULIP ensures that your loved ones are secure in your absence with life insurance, and at the same time, you are earning returns on your investments to achieve your long-term goal. ULIP requires planning if you want to achieve your goals with it. One tool that will help you in planning your ULIP investments is a ULIP calculator. Read further to understand everything about a ULIP calculator.

Meaning of a ULIP calculator

ULIP calculator is a financial tool that you can access online. It allows you to understand how your investment in ULIP is aligned with your long-term goals. With a ULIP return calculator, you can get an estimate of the returns you will get on the plans that you are interested in. Several calculators also provide the premiums you need to pay for different plans. The data that you gather from a ULIP calculator will help you to compare different ULIPs and choose the one that meets your specific needs.

Key features of a ULIP Calculator

When you plan your ULIP, a ULIP calculator is a blessing in disguise. Instead of manually calculating and comparing different funds, a calculator provides you with precise numbers in a matter of minutes. 

Here are some features of the ULIP calculator that make it essential for planning:

  • Provides transparent results

Calculating the probable returns that you will make in different funds has a huge impact on your decision of fund selection. The calculator provides returns with complete transparency. It allows you to accurately monitor the funds that you are interested in and finds the returns for a specific tenure.

  • Quick and easy to use

ULIP calculators are available for free online and are easy to access. To use the calculator, you need to enter the basic data required for your needs and you will get the numbers in minutes. Doing the same thing manually is a tedious task, and there are always chances of manual errors. 

  • Helps in planning 

ULIP plan is unique with plenty of investment options. The calculator helps you to narrow your choices from the several fund options available. It allows you to plan according to your goals by reflecting on the past performances of the funds you are interested in. It enables goal-oriented planning and helps in achieving your financial goals.

  • Compels informed decision-making 

Instead of being swayed by your insurance agent, friend, or relative, using a calculator means relying on data. It allows you to make a rational decision by analysing and comparing the different fund options available. The calculator enables you to choose funds that fit your desired investment criteria. 

Using a ULIP calculator

ULIP calculators are simple to use. Here is a step-by-step guide for it:

  • Step 1: Fill in the required details for the ULIP.
  • Step 2: Choose the premium amount you can pay and the expected returns on your investment. 
  • Step 3: Choose the frequency of your premium payment based on your convenience. 
  • Step 4: Choose the duration of your ULIP policy
  • Step 5: Choose the fund type that you are interested to invest in
  • Step 6: Simply click on “calculate” and you will get all the details you need.

It is simple to use a ULIP return calculator while planning your investments. There are several calculators available online that you can use for calculating and planning your ULIPs effectively.