ULIP Calculator Features And Benefits: What It Is And Why Use It?

Conventional investment avenues such as savings account and fixed deposits may not provide the returns one needs to navigate the rapidly rising inflation levels. And for many risk-averse people, investing directly in the share market can be laden with heavy risks. This is solely the reason why investment schemes such as ULIPs have been introduced in the market. 

Like other investment plans, there are ULIP calculators that enable you to evaluate your needs. Using the ULIP calculator online will help in your financial planning. The reason why you should opt for ULIP plans is that they are a great investment scheme. There are other benefits too that make it one of the best long-term investment schemes.

One of the several benefits is that you can choose from the multiple options of ULIP schemes based on your investment needs and risk appetite. There can be plans that focus on investment, savings, and a balanced ULIP plan. And a ULIP calculator online helps you compare these plans and determine the kind of plan you want for yourself. 

Moreover, using a ULIP calculator online will help you evaluate the premium amount and check the ULIP returns. Basically, based on the policy’s premium amount and tenure, the ULIP calculator online estimates a specific plan’s returns. Thus, helping you choose a ULIP plan that offers maximum returns on investment. 

ULIP Calculator Features

ULIP calculators online have other essential features, too, like the following:

1. Transparency

ULIP Transparency
Source: NorthBridge Times

ULIP calculators online are also known for delivering transparency in the calculation of returns. Generally, the return aspect in each fund may vary as per the existing market situation. The calculator helps you know the return for a specific fund for the tenure chosen by you most transparently. 

2. Flexibility

Source: BW Businessworld

ULIP calculators online will offer you the highest possible flexibility in determining the amount to be invested in ULIP. It will give you the option to modify the premium amount as well as the tenure of the policy and help you know the estimated future investment value. This value may be based on critical factors such as affordability, the development of financial goals, and individual personal preferences. 

3. Planning Tool

ULIP Planning Tool
Source: Shutterstock

Although already mentioned above, ULIP calculators online can be used as a useful financial planning tool. However, it will also give you an idea of the plan you want, depending on your life stage. If you are young, your risk inclination can be more, but you may have to opt for a balanced ULIP plan with a growing family. 

4. Control on Decision Making

Control on Decision Making
Source: TATA AIA Life Insurance

You can have complete control and clarity over your investment decision. As ULIP calculators online enable you to check various combinations of premiums and policy tenures, you can change between funds accordingly. Most insurers do not even charge an extra amount. 

ULIP Calculator Benefits

ULIP Calculator Benefits
Source: Turtlemint

While these were the features, you should also know the benefits of using a ULIP calculator online:

  • You can use the ULIP calculator online absolutely free of cost. Moreover, it is hassle-free and straightforward to use.
  • ULIP calculators simplify complicated calculations and help you make the right investment according to budget, age, and future financial objective. 
  • It also helps you make a safe investment over the long term with a user-friendly interface. You need to enter the required details to get the result.
  • You can make goal-based decisions using the ULIP calculator online. 

By now, you must have understood what is ULIP, ULIP calculator, its features and benefits and why to use it. You can follow these simple steps to use the ULIP calculator online:

Step 1: After selecting your insurer, you need to log in to the ULIP online calculator on their website. 

Step 2: Next, you will have to enter the amount you want to invest in the ULIP plans. According to your suitability, you can choose to invest a minimum premium. 

Step 3: You will have to select the frequency of premium payment. You can choose to pay the premium either in lump-sum or in annual, quarterly, or monthly installments. 

Step 4: After that, you will have to choose the tenure of the policy. You should note that as per IRDAI regulations, there is a five-year lock-in period for ULIP plans. Before this period, you cannot liquidate or withdraw the funds. 

Step 5: Then, you will have to enter the amount from the premium payment you want to invest. 

Step 6: Then, you will have to select the lock-in period of investment. Most ULIP plans offer a lock-in period of 5 years. But it will be wise to invest for a long time to gain the maximum return on investment.

Step 7: Finally, you will have to choose the funds you want to put your money into. You can choose to invest in equity, debt, or a combination of both. But make sure to check how the fund has performed in the past in the market. To gain profitable returns on investment, it is always advisable to invest in funds that have performed well in the market in the past 3 years. 

So, you can use ULIP calculators online on reliable insurance companies’ websites like that of Max Life Insurance. You can check their ULIP plans, use the calculator and plan your financials accordingly!


Darsh is a blogger and previous owner of this website.

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