Business

What is a ULIP Calculator?

It is an online calculator which guides investors on calculating their premium amount for a ULIP and get the return value on their investments. In simpler words, ULIP calculators enable the policyholder, the taxpayer, or the investor to compare the best plans and get good returns on their investment.

The Reason Behind Using a ULIP Calculator

ULIP is considered one of the best investment plans for an individual investor. ULIP is considered best for those investors who are looking for a safe insurance option as well as a lump-sum amount in return.

However, it is often found that the investors face difficulties while making investments in ULIP, as there are only a few investment options available. When it comes to such situation, ULIP calculator comes in  handy and enable the investors to choose the best ULIP by comparing different plans available in the market. Also, in order to meet their long term requirements, the investors can use the online ULIP calculator.

How to Use the ULIP Calculator?

There are few things to keep in mind while using online ULIP calculators. It is very essential for the investors to be ready with the crucial details while buying one, such as the type of funds, premium payment frequency, the rate of returns and the amount of money they want to invest in.

By putting all these details in the ULIP calculator, one investor can calculate the value of return. Let’s check the step-by-step process involved to use a ULIP calculator:

Step 1: Firstly, the investors need to log in to the free online ULIP calculator.

Step 2: Once the investor is logged-in, s/he will then require to enter the amount which s/he wants to invest in the ULIP plan. The investor may choose the lowest premium of Rs. 1500 per month.

Step 3: Following that, the investor is required to select the term of premium payment. Based on one’s preferences, an individual can pay the premiums either in half-yearly, quarterly, monthly, annually or lump-sum amount.

Step 4: Then, he or she needs to choose the tenure of the policy.

Step 5: Next, the investor needs to enter the amount which s/he wants to allocate for making an investment from the paid premium.

Step 6: At this step, the investor needs to select the lock-in period for her/his investment. The investor will get a minimum of 5 years lock-in period. Apart from that, the investor is advised to invest for a longer period of time to avail the maximum return in future.

Step 7: This step is considered the final step. The step requires the investor to choose the fund in which s/he wants to invest in. The investor can choose debt funds, equity funds or both the funds. Prior to choosing the fund, the investor needs to check the performance of different funds in the market. They need to choose the fund which has been performing well in the market over the past 3 years.

After completing all these, the policyholder needs to put their personal details such as date of birth, gender, their smoking habits to get receive exact investment value.

Best ULIP Plans in 2019

There are a lot of ULIP plans available in the Indian insurance market to choose from. One should keep calm and make the investments as per their needs and requirements. The below-mentioned table will guide the investors to invest in the best ULIP plans 2019:

Plans of ULIP Entry Age (Min-Max) Lowest Premium Premium Allocation Charge Policy Administration Charge Number of free Switches Annually
Bajaj Allianz Future Gain 1-60 years Rs.25,000 0% to 1.5% Rs.33.33 per month Unlimited
Aegon Life iMaximise Secure Plan 7-55 years Rs.24,000 to Rs.36,000 Nil Rs.100 per month 4
Max Life Fast Track Growth Fund 18-50 years Rs. 25,000 to Rs. 1,00,000 4% of Annual premium) and 2% (Single premium) Rs.1,500/year 12
PNB MetLife Smart Platinum 7-70 years Rs.30,000 to Rs.60,000 1.25% per annum (maximum) Rs. 40 (Max) 4
SBI Life Wealth Assure 8-65 years Rs.50,000 3% ( single premium) Rs. 45/month 2
HDFC Life Pro Growth Plus 14 to 65 years Rs.2500 to Rs.10000 2.5% of annual premium Rs.500 per month (max) unlimited
Tata AIG Life invest Assure II-Balanced Fund 4-55 years Rs.75,000 to Rs.1,20,000 5% of annual premium 0.25% of Annual premium 12
SUD Life Dhan Suraksha Plus 8-50 years Rs.24,000 6% of annual premium Rs.6000 per annum (Max) 1
LiC Market Plus-I Growth Fund 18-65 years Rs.5000 to Rs.30000 3.3% Rs. 60 per month (Max) 4
ICICI Pru Wealth Builder II 0-69 years Rs.24,000 to Rs.48,000 3% to 4% Rs. 500 per month NA

Features of ULIP calculator

There are a bunch of features in ULIP calculator. Let’s have a look into some of the most important features of the ULIP calculator:

  • Flexibility: The investors will have the flexibility to use the ULIP calculator as they can change the variables based on the amount which they need to invest in.
  • Transparency: The investors will be able to calculate the exact amount as the online ULIP calculator maintain its transparency while calculating the amount.

Benefits of ULIP calculator

The investors can avail of many benefits by using the ULIP calculator. Let’s check the few benefits that are beneficial to investors:

  • Everyone can use ULIP calculators as it is simple and free of cost.
  • ULIP calculators simplify crucial and complicated calculations very easily.
  • The investors can be sure about the safety of their investments in ULIPs, as it maintains its transparency and flexibility.

Final Thoughts:

All in all, ULIP calculators can make your life much easier when it comes to making an investment in ULIP plans. You simply have to take care of certain things such as limitations & exclusions on the sum assured in case of permanent disability or death (of the policyholder) and the associated charges as they can affect the return value you are supposed to get as an investor.