Individual investors should think about ULIPs as one of their best investment possibilities. Investors who want a safe insurance alternative with a lump-sum payoff can consider ULIPs.
However, because there are only a few investment options available, investors sometimes struggle to make ULIP investments. When faced with such a situation, a ULIP calculator comes in handy, allowing investors to analyze various plans on the market and choose the best ULIP.
What Is a ULIP Calculator, and How Does It Work?
There are a few things to bear in mind while using online ULIP calculators. It is crucial for investors to have all of the relevant information before acquiring one, such as the type of funds, the frequency of premium payments, the rate of return, and the sum of money they wish to invest.
By entering all of these details into a ULIP calculator, one investor can assess the value of the return. This is how one is supposed to use a ULIP calculator.
Step 1: Initially, investors must log in to the online free ULIP calculator.
Step 2: After logging into the free ULIP calculator online, the investor must enter the amount they wish to invest in the ULIP plan. Investors can choose to invest a minimum premium of Rs. 1500 per month based on their own eligibility.
Step 3: Decide on the frequency of premium payments. Individuals can pay the premium in lump sums, annual, quarterly, or monthly instalments, according to their personal financial situation.
Step 4: The next step is to select the policy’s tenure.
Step 5: In the following step, the insured must input the amount of their premium payment that they wish to invest.
Step 6: The insured must choose the investment lock-in duration. ULIP plans have a 5-year minimum lock-in duration. However, it is recommended by market experts to invest for the long term in order to maximize return on investment.
Step 7: The next step is for the investor to choose the funds in which they want to invest their money. Investors have the option of investing in equity instruments, debt funds, or a combination of both types of investment products. However, before making an investment, it is critical to investigate how the fund has performed in comparison to other funds in the market. It is generally good to invest in funds that have performed well in the market over the last three years in order to get favourable returns on investment.
After filling out all of the necessary information, policy buyers must provide personal information such as gender, date of birth, and whether or not they smoke in order to obtain the exact worth of the investment they will obtain in the ULIP plan.
The use of an online ULIP calculator is simple and straightforward. Furthermore, no further funds are required from the investor’s wallet in order to obtain information on their investment. Investors can use the ULIP calculator to adjust the factors to determine how much money they need to invest to reach their future financial goals. However, investors should keep in mind that ULIP calculators take into account the expected inflation rate when calculating returns on investment.