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Unit Linked Investment Plan or ULIP is a mix of insurance and investment. As the product is hybrid, a part of premium paid in ULIP goes towards life cover and the remaining amount will get invested in investment fund chosen for wealth creation. ULIP can be a great choice for meeting many long-term goals like retirement, child education, dream home and a corpus building. When it comes to investing in insurance product for wealth creation, cost and returns are mainly considered for comparison. To ease out your comparison and buying process, ULIP calculator comes out as the best tool.
ULIP calculator is a tool that is exclusively developed to help the investors know the maturity amount based on their expected future investment value and returns. The ULIP calculator also helps in comparing multiple ULIP policies based on the return.
To calculate the returns on ULIP plans using ULIP calculator, a simple process needs to be followed. Here is a step by step process of using ULIP calculator.
Log on to any genuine website or online source to get a free access for online ULIP calculator.
Once you log on to the ULIP calculator page, you are asked to provide some basic information like name, date of birth, gender, contact details like mobile number and email address and your smoking habits.
Proceed next with providing ULIP investment related information. Enter the amount of premium or the amount of money you would like to invest in ULIP. When you are putting the premium amount, keep it affordable and realistic.
Choose the premium frequency. The amount you wish to invest needs to be paid on a monthly/quarterly / half-yearly/yearly (as per the premium payment mode chosen by you) basis throughout the tenure of the policy. Choose it as per your convenience.
Next step is to choose the tenure you wish to invest in ULIP. Carefully choose the time frame for which you would want to stay invested in a particular ULIP plan. Keeping in mind your long-term goals and investment objective, choose the right tenure smartly.
ULIP gives an option to choose the investment fund of your choice (mix of debt, fixed income and equity in various proportion). Ensure to choose the right investment fund option keeping in mind your risk appetite, investment objective and market conditions. You can also take help of experts to know the performance of particular fund option.
Click on ‘’calculate’’ tab to get the estimated return details on the intended ULIP plan. That’s it! With this you can also compare various ULIP plans.
Online ULIP calculators come with varying features to estimate the future value of your ULIP investments and returns, which helps you in comparing various ULIP plans. Here are some of the major features of online ULIP calculator.
Transparency: Online ULIP calculators are known for providing transparency in calculation of returns. Return in each fund may vary according to market situation. ULIP calculator helps you in knowing the return for a specific fund for a tenure or time period chosen by you in the most transparent manner.
Flexibility: Online ULIP calculator offers you the maximum possible flexibility in deciding the amount to be invested in ULIP. ULIP calculator gives you the option to change the premium amount and tenure of the policy to know the estimated future investment value based on your affordability, need, financial goal and individual preferences.
Planning tool: When you are planning your finances and considering to invest in ULIP plans, online ULIP calculator can be used as an effective online financial planning tool. It helps you know which investment fund can clearly suit your investment needs based on your risk appetite and investment objective.
Rational investment decision: With the help of online ULIP calculator, you can compare and analyse the estimated returns of various ULIP products available in the market. Having an estimation of returns and comparative cost-benefit analysis of plan using ULIP calculator can help you, as an investor, in making rational investment decisions.
Complete control on decision making: As you can check various combinations of premiums and policy tenures (based on need, preferences and affordability) to know the future estimated value of ULIP investments, you can have complete control and clarity on your investment decisions.
ULIPs are financial products with complex structure. This is the reason why the comparison of ULIP plans are not easy. There are various types of ULIP designed in various way to suit diverse range of needs. However, ULIP calculator can help you in this with its various standout features and benefits. Here are some of the important benefits of ULIP calculator.
Here are some of the top ULIP plans that has newer features and low on cost
|ULIP Name||Entry Age||Premium Allocation Charges||Policy Administration Charges||Fund Management Charges|
|Goal Assure Bajaj Allianz Life Insurance||0 year-60 years||Nil||Rs.400 per year increasing at the rate of 5% p.a up to Rs.6000 maximum.||0.95% to 1.35% p.a (eight investment fund options available)|
|Click 2 Invest HDFC Life Insurance||0 year (30days) -65 years||Nil||Nil||1.35% p.a (eight investment fund options available)|
|eWealth SBI Life Insurance||18 years-50 years||Nil||Nil||1.35% p.a|
|ICICI Prudential Lifetime Classic||0 year-60 years||Total cost may vary from 1.12% to 2.04% p.a after adjusting wealth boosters and loyalty additions (eleven investment fund options available)|
|Online Savings Plan Max Life Insurance||18 years -60 years||Nil||Nil||1.25%|
ULIP calculators are an effective tool for sound investment planning and decision-making. ULIP calculators allow you to compute the estimated value of your ULIP investment based on the premiums and tenures and other details entered by you. It helps you in comparing returns and to make a logical choice based on your investment goal, risk appetite and affordability.
Is ULIP a good investment option?
ULIP is a good and tax-efficient investment option for long-term investment with various risk profiles. As ULIP gives diverse range of investment funds option to invest in, any investor looking for wealth creation along with life protection can ideally invest in a ULIP plan.
How does ULIP plan work?
ULIP is a hybrid product that gives the benefit of insurance and investment under one umbrella. Part of the premium paid is used for providing life protection and the remaining part of premium is invested in investment funds for the entire tenure of policy. Investment funds are a mix of debt, equity and fixed income instruments in various proportions. ULIP has a lock-in period of five years. During the tenure, if policyholder dies, sum assured or fund value, whichever is higher, will be paid to nominee. On maturity, the fund value will be paid.
What is fund value in ULIP?
Fund value is the current value of your total investments made in ULIP funds. It’s the indication of fund’s market performance.
How ULIP NAV is calculated?
ULIP net asset value is calculated by adding up the total ULIP fund holdings on a particular date less all the admissible expenses (operating cost, management fees, marketing and other charges and expenses) The net amount will be divided by the number of units held in ULIP plan to arrive at net asset value (NAV) per unit.
What is ULIP calculator?
ULIP calculator is an effective online tool specifically designed for calculating ULIP premiums and estimated future income of particular ULIP investment. ULIP calculator is simple to use and easily accessible online at free of cost. You can decide how much to invest to arrive at the desired value based on your individual preferences, investment objectives, risk profile and affordability.
How ULIP calculator is helpful for offline users also?
Even if you are buying offline ULIPs, you can make use of ULIP calculators available online to take a logical decision. Using ULIP calculator, you can estimate the future value and compare the plans available on cost-return basis before zeroing down on a particular ULIP plan.