In order to calculate returns from a unit-linked insurance plan (ULIP), you will need a ULIP calculator. It is a tool that allows you to calculate the ULIP returns and the premium amount.
If you want to know how to calculate ULIP returns, then read this article.
Every person looks for ways to increase wealth and provide financial security to their family. Hence, many search for good investment options that can allow them to achieve their goals. One of the best investment options that can be beneficial are ULIPs.
A ULIP is a unique insurance product that provides the benefit of insurance as well as investment. When a person invests in a ULIP, a part of the premium gets invested in life cover, and the remaining amount is invested in different funds, such as equity and debt funds.
Thus, with the help of a ULIP, a person can ensure financial security for his/her family and earn good returns at maturity. However, before purchasing a ULIP, an individual must know the returns he/she might gain. To calculate the returns, a person can use a ULIP calculator. It is easy to find a ULIP calculator online. The individual needs to add a few details and the calculator will provide the results.
The Importance of a ULIP Calculator
Many people prefer ULIPs because they provide the benefit of insurance as well as investment. It is a great investment option for people who want to earn good returns while ensuring financial protection for their dependents.
But there are many ULIPs, and it can get difficult for people to choose the right one. Hence, a ULIP calculator can be beneficial in such a situation. The calculator will allow the person to calculate the amount he/she will have to invest in order to meet his/her goals.
Steps to Use a ULIP Calculator
There are a few details that a person should know about while using a ULIP calculator, such as the types of funds, the frequency of premium payment, the expected rate of returns, etc.
Here are the steps that a person needs to follow to use a ULIP calculator
- The person will need to enter the amount they want to invest in a ULIP.
- Then the person needs to select the frequency of premium payment, such as monthly, quarterly, or annually.
- After that, select the tenure of the plan.
- The investor needs to enter the amount of money they want to allocate towards investment.
- After that, the individual needs to select the funds in which he/she wants to invest the money. They have the option of equity funds, debt funds, etc. But before making the investment, it is important to check the performance of the fund.
- The person will have to enter personal details like age, gender, etc.
- After that, the calculator will provide information on the returns that a ULIP can generate and the premium amount.
Keep the aforementioned points in mind if you want to use a ULIP calculator.