The fear of investments might have been washed off from your minds due to the availability of safe tools in the market. According to a report, a majority of Indians are taking their steps towards investments for the growth of their wealth. Today, investments have been made much easier with the introduction of a dual-benefit product, such as a ULIP policy. A ULIP policy not only clubs’ investment and insurance together but also offers dual ULIP tax benefits on premiums and maturity proceeds.

Under a ULIP policy, returns, premiums, and sum assured can be a few of the essential components. Hence, it should be crucially decided upon while choosing a ULIP policy. However, the right way to ensure that you receive decent returns, pay a minimal premium, obtain adequate coverage by calculating it on a ULIP calculator. Therefore, let’s first understand what a ULIP calculator is in detail:

What is a ULIP calculator?

A ULIP calculator is an online tool that can let you calculate the premium value as well as compare the available ULIP policies. Apart from the premium amount, you can also determine the maturity amount based on the expected future investment value as well as the ULIP returns. If you wish to identify the returns with the help of a ULIP calculator, you should follow the seven steps mentioned below:

1. Log in to your insurer’s website to access a ULIP calculator
2. Submit your personal details, such as your contact number, date of birth, gender, email address, and so on
3. Enter the information about your ULIP policy, such as your invested amount, premium value, etc.
4. Choose a premium payment frequency based on your convenience and financial condition.
5. Select the tenure of your ULIP policy. While choosing the tenure, consider your investment objective and the financial goals of your family members.
6. Pick between equity funds and debt funds based on your risk appetite.
7. After following all the steps mentioned above, calculate to obtain estimated returns.

Using a ULIP calculator can provide you with many benefits. Hence, let’s go through the top four crucial benefits given below of a ULIP calculator:

• You can get an estimated amount of the overall cost of the ULIP policy.
• You can compare the different types of ULIP policies based on the estimated data.
• You can make an informed as well as a rational investment decision.
• You can access a ULIP calculator easily and free of cost.
• You can strategize your investments based on the following factors:

1. Age
2. Financial goals

• Risk appetite

Apart from the ULIP benefits, you should also focus on the feature of a ULIP calculator. Identifying the features of a ULIP policy can allow you to gain a better understanding of the functioning of a ULIP calculator. Therefore, let’s understand what the features of a ULIP calculator are in detail, which is mentioned below:

• Transparency

A ULIP calculator can be a transparent tool that can allow you to know your generated returns from the ULIP policy without any discrepancies and errors. Based on the selected tenure and funds, you can get a clear picture of the expected rate of returns from your ULIP policy.

• Flexibility

Under a ULIP calculator, you can receive maximum flexibility to match your evolving needs. ULIP calculator can let you change the premium payment mode and tenure of your ULIP policy. Due to the flexibility, you can understand the estimated investment value depending on your affordability, financial requirements, and preferences.

• Advanced planning

While planning to invest in a ULIP policy, calculating your premium, returns, and so on can help in preparing yourself in advance. For instance, if you find out with the help of a ULIP calculator that you cannot afford the premium, you might either save additional money to buy the policy or simply go ahead with a ULIP policy that costs less.

To sum up, ULIP calculators can be an effective tool for a sound investment planning and decision-making process. However, see to it that you use a ULIP calculator on the official website of your insurers since it can provide accurate information. Using a third-party website might not be as credible as your insurer’s website. Moreover, the calculation can be effective only if it is obtained from the right source.