ULIP: Unit Linked Insurance Plan
First, let us read on what a ULIP is before we reach out for the ULIP calculator. A ULIP plan is a type of life insurance plan that one can invest into in order to get returns. The ULIP is a plan that consists of an investment plan as well as an insurance policy, together under one policy. If a person plans to take up a ULIP plan, then they will be considered as the investor as well as the insurance policy bearer of the plan.
This happens because they get the benefits of both the insurance plan and the investment plan by getting insurance cover and also return on investments, respectively. The unit linked insurance plan is a two – in – one plan because it gives twice the benefits for the price of one when you compare it with any other type of plan, apart from an endowment plan which the ULIP has an advantage over, anyway.
The advantage being that the ULIP plan has high levels of transparency. Transparency comes in the form of that the investor or the insurance policy holder is aware of the whereabouts of the funds that their money will be invested into. Knowing which all ULIP funds their money invested will be going into allows them to analyze the market from an insider’s point of view. They are able to study the funds markets, money making markets and fund companies on the basis of how much returns they are known to give and what kinds of returns they have given to their investors in the previous few years. This is very helpful as the investor can anticipate for the results without any shock and also can know when to take their money out of the funds to get the best return on investments.
The funds for investments are taken from the premiums paid by the plan bearer. You do not need to pay a separate amount for investing into funds. The investor gets to decide how much of the premium money will be invested into the funds.
What is a ULIP Calculator?
A ULIP calculator is a calculating device that will help a unit linked insurance plan investor to calculate the estimated corpus that they could get on their investments in accordance with their amount of funds and other factors. The ULIP calculator mainly helps in understanding the kind of ULIP funds that will be the most preferable for an investor to investor their money into according to their risk appetite, amount of investment and other factors that the ULIP calculator considers while completing the process of calculating.
What is the ULIP calculator used for?
The unit linked insurance plan calculator works in a way that it helps the plan holder to get a better understanding of the value as well of the sum amount of the cover of the ULIP insurance plan that they might be subject to after they have made their investments. The ULIP calculator will allow the plan bearer in understanding the corpus value and amount that they would need.
The unit linked insurance plan calculator helps the investor to get an idea of how much their investments will accrue in an approximate value.
The ULIP calculator considers all the necessary details and information about the investor’s risk appetite and their investment potential and then will help them in choosing a unit linked insurance plan fund which will be the most beneficial and help them the most with the decision of which is the best suitable fund plan for the investor and their requirements and also that of their families.
In order to give you these estimates, suggestion of the funds, etc., the unit linked insurance plan calculator will ask you to fill some information and details about the certain aspects so that it can process your outcome results and give you a result or an idea about what kind of investment plan fund you should choose to invest into for the unit linked insurance policy plan which will be in your best interest and be the most beneficial for you. The following is the information about your details that the ULIP calculator will ask an investor to fill up:
- The number of years that the unit linked insurance plan policy holder is willing or planning on making investments into the plan.
- The sum amount of the investment money that the ULIP plan policy holder is planning to invest or has invested into the plan.
- The percentage of the post – tax yearly rate of the return that that investment plan holder has earned on the investments that they made.
- The frequency of the investments that the ULIP policy holder plans to make into the plan. How frequently they will be investing into the ULIP, is the question that the ULIP calculator will ask the plan bearer.
Types of unit linked insurance funds: The investor or the insurance policy bearer has the power to choose a fund from any of the following types of ULIP plan funds to invest their money into in accordance with their preferences for the fund markets and the risk appetites. The ULIP calculator will suggest one of the below funds to invest into after analyzing the information provided by the plan holder:
- Cash ULIP Funds
- Bond ULIP Funds
- Balanced ULIP Funds
- Equity ULIP Funds
After all the above details of the ULIP calculator are filled up, which have to be done accurately and properly, the ULIP calculator will give the investor the results in terms of an estimate or an idea of what kind or type of investment fund will be the best one for them to invest their fund money into and also get a good return on investment for the same. Calculate with the ULIP calculator to get a good idea of what your requirements are and what are the best choices for you that you can make to get the best.