A ULIP calculator is a tool that helps you calculate the premium amount that you are required to pay either monthly or annually. It also helps in determining the possible returns that you will get on your ULIP investment. Financial experts highly recommend using the ULIP calculator before you make a ULIP investment or purchase. This will help you gauge which ULIP plan will be beneficial for you in the long-run. The estimation of the premium amount to be paid monthly or annually will help you plan your finances better.
In this article, we will discuss the benefits of the ULIP calculator, such as:
- Easy-to-use
- Simplifies the financial calculations
- Helps you make better and safer investments
- Helps you select the right fund
Let’s see these benefits in detail below.
Simple and easy-to-use:
Unlike most financial instruments, a ULIP calculator is rather easy-to-use. All you have do is select your policy term and the premiums that you wish to pay. Fill in other details of the policy asked by the calculator (this requirement varies from calculator-to-calculator). Then, fill in personal information as requested by the calculator. Click on “Get Quote” and the ULIP calculator will calculate your estimated premium. What’s more, is these calculators are free of cost.
Simplifies the calculation:
Financial calculations can get pretty complicated; a ULIP calculator simplifies these complex calculations. These simplified calculations generate an evaluated result, which further helps you to choose the right ULIP plan according to your requisites. The calculator also helps in all the possible comparison according to your budget, age, long-term and short-term goals, etc. before you zero down on your investment.
Safer investments:
While calculating the ULIP returns, it also shows you what the possible challenges that you may face going further with the investment are. This helps you make the right decision well in time and opt for the ULIP plans that compliment your future financial goals. The ULIP investment lets you switch between funds if you see your funds are performing weakly or if your future goals change. During this time, the ULIP calculator will help you compare the benefits you will earn on the new investment as compared to the old one.
Right fund:
Once you learn that the ULIP investment you are about to invest in is safe, the ULIP calculator helps you determine if the fund is right for you. This will be determined on various factors, such as:
- Age
- Gender
- Lifestyle
- Annual income
- Policy tenure
- Payable premium
- Payment interval
Apart from this, the ULIP calculator helps you keep to your goal and make goal-based investments.