
A ULIP plan calculator[4] is a simple online tool that makes the process of ULIP investments easier. It estimates how much investment you may need to reach a desired corpus and how many returns a chosen investment amount would be able to generate. By taking note of your risk tolerance and other parameters, it can provide you with potential earnings that can be reached through the investment component of your policy. In turn, you get a fair idea of how much you need to invest or how big the corpus can get, without even taking the trouble of scary calculations.
IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICY HOLDER.
From a transformation in consumer practices to an evolution in financial planning, the past decade has been a witness to a paradigm shift in the Indian mindset. Moving beyond traditional savings, life insurance, and physical assets, Indians are now steadily embracing the habit of investment [1] in financial assets for wealth creation. The substantial growth of assets under management under financial products such as mutual funds at a staggering rate of 16% in the span of five years from FY17 to FY24 stands as strong evidence. Meanwhile, the pandemic has reminded us how crucial it is to ensure the financial security of the loved ones if an earning member of the family is no more due life’s unfortunate circumstances. Life insurance being a priority, coupled with increasing interest towards investment opportunities, the demand for blended financial products is showing an upward trend. Combining life insurance and investment opportunity, the unit-linked insurance plans have thus been a popular choice. As recorded by a pan-India survey[2] a couple of years back, 2 out of every 3 respondents were interested in investing in ULIP Plan in the following year.
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Beyond the insurance part, it’s the wealth creation in ULIPs [3]that sets it apart. Here a portion of the premium you pay, forms the life coverage while the remaining amount is pooled in for a mutual fund-like system to purchase units of financial assets based on your risk-taking ability. Thus, your family stays financially protected against unforeseen events through the death benefit payable. The maturity benefit, is the total fund value generated from the returns of your ULIP investment which can contribute to your wealth creation goals. The accumulated wealth, may help to build a corpus to fund your life goals. But no matter how lucrative the ULIP plans may seem, a practical investor with the core goal of wealth creation would like to gauge how much returns can be expected before purchasing a policy. Also, a person who has already bought a ULIP might like to trace the fund performances^ to figure out if his/her investment decisions are going the right way. In both cases, a ULIP calculator may be of great help. To understand how a unit-linked insurance plan calculator can help, let’s start with the formal definition.
Everyone has life goals in their mind, like a comfortable retirement, buying a property, overseas education for your child, or marriage, etc. And fulfilment of each of these goals requires a considerable amount of money. Saving for the same might help, but beating the future inflation may seem a daunting task. This is where the need for wealth creation through financial assets seems relevant. But the question that remains behind each investment opportunity is, how big a corpus can be managed through it?
Understanding the structure of ULIP will help you figure out how this life insurance plan can help you financially protect your loved ones while letting you grow money simultaneously. Here, as you stay invested in the chosen funds, they earn returns from the market that grow through the power of compounding. But estimating how much wealth you can accumulate in the process involves complicated calculations. Here’s where the ULIP calculator becomes your saviour!
Once you decide to invest in a ULIP policy and plan to do thorough research before the purchase, a ULIP calculator may make things easier for you. These calculators are easily accessible online across insurance company websites, aggregator platforms, wealth management portals, news websites, and blogs. These can save you from chunks of calculations too. But did you know that they can provide holistic support in ULIP investments?
Here’s a detailed look at why a ULIP calculator could be considered a wholesome support[3][5]:
Are you seeking to start with your financial planning? Here, correct estimations will lead you to the right financial path and the budget needed to fulfil the milestones. A ULIP calculator may come handy. Depending on the details you provide, it may help you understand things like how much you need to invest to fulfil the goals you have, how long it will take for you to build the desired corpus, or the amount of returns you can expect. This enables you to reach crucial decisions regarding the policy term, the sum assured, and premiums you can afford for your ULIP policy.
Again, since a ULIP plan invests money in market-linked funds, the potential returns depend on the market condition, among other factors. The ULIP return calculator can help you gauge whether your investment is going well or if modifications are needed in the allocations or strategy.
To sum it up, a ULIP investment calculator may support you with ease of sensible financial planning.
For instance, you’re contemplating an investment in ULIP, planning a reallocation of an existing ULIP investment, or considering a surrender or a withdrawal procedure. In this case, it may be worth knowing accurately about the charges associated and how they will affect you. Here's where a ULIP calculator can be trusted.
When opting for a ULIP investment, your insurer will levy charges. Because of these charges, it’s either the life cover or the investment component that gets reduced, or the maturity benefit turns out to be smaller. So, having a clarity of this impact beforehand may help you in evaluating the investment in a better way. Here, if you input the details of the charges, the ULIP plan calculator may provide you with the correct estimation of the corresponding life cover or the fund value. Accordingly, you’ll be able to make an informed decision regarding your investment.
There are many insurance companies in India offering ULIP product. Each of these plans come with life cover along with various other features, benefits, fund choices, etc. which may cater to many varied needs of policyholders . To understand which of the available plans fit best to your requirements and expectations, you would like to compare them based on their offerings. Here, a unit-linked insurance plan calculator may be a worthy tool to use. Estimating potential returns from each of the plans, it can help you check and compare the options. In turn, tracing the best policy according to your needs may be easier.
Usually, every investor has a definite goal in mind when they zero in on a particular financial product for their purpose. Since, ULIP is meant for long-term goals, one may intend to purchase it for targets like the child’s higher education or marriage, retirement, or buying a property. But whatever the chosen goal is, the target would be to accumulate wealth to fulfil the same. Also, it would be necessary to regularly monitor the investment and its progress to achieve your goal. In both cases, seeking help from a ULIP calculator online may be helpful. Here, you can not only plan the financial objectives but also keep track of your investment too. Providing the details of your target and the time range, you may be able to gauge if you can fulfil your goals within the desired timeline.
For its investment component, a ULIP plan is designated to utilise a part of the premium paid in market-linked funds to earn returns. Similarly, the returns from the ULIP investment depend on the funds selected, and their respective performance^ based on the stock market conditions. These funds are chosen based on the risk appetite of the policyholder. For example, if he/she is ready to tolerate a bigger risk for higher gain, the ULIP plan invests majorly in equities or related high-risk assets. But how does one pick the best possible funds to optimise returns? A ULIP calculator will help you explore options and find your best fit. By estimating the potential returns or losses, the calculator can find out the best fund allocation given your risk tolerance, comfort level, and the monetary requirements.
There are several charges to be paid when purchasing a ULIP plan on account of the operation, management, and the services offered. These charges are levied by the insurer towards premium allocation, mortality, fund management, administration, ulip fund switches, withdrawal, or surrender of the policy, which gets deducted from either the premiums paid or the fund value accumulated.. To figure out how a ULIP plan can benefit you, a clarity of the charges and the corresponding impacts on the returns is needed. To measure them in the right way, a ULIP calculator may be a helpful tool.
When it comes to investment, there isn’t a one-size-fits-all solution. If you are looking to build a corpus for your child’s overseas education, you may need a separate plan than what someone needs to build his retirement corpus. There are choices aplenty in the market if you wish to invest in a unit-linked insurance plan. While different ULIP plans are designed to meet different needs, there are options to allocate the investment your way or add specific riders with ULIP to help you personalise a plan for specific needs. It’s the ULIP fund calculator that may help you estimate the expected returns or calculate the life cover accordingly to make a ULIP plan align well to your goals.
Financial calculations usually involve a lot of estimations based on various formulas and hypotheses. Thus, often many people find them not only difficult but time-consuming as well. To save you from hassles, a ULIP calculator may seem a worthy choice. Based on some simple inputs from you, these calculators can perform the complicated calculations within seconds and bring the results to your fingertips. A ULIP calculator can thus help you do all the estimations yourself, ensuring quick and easy calculations. You may just key in inputs, like the desired investment and the preferred premium payment frequency to get an idea of the potential returns to expect from the investment.
Alongside being a combination of insurance and investment opportunity, a ULIP may help you save taxes too. But with a plethora of choices available for your ULIP investment, there can be possibilities that you end up choosing a wrong policy. To minimise that scope, it’s of utmost importance to make an informed decision. Here, considering two crucial things can be fruitful—i) knowing the charges and costs involved and ii) understanding the tax benefits in your ULIP policy. A ULIP plan has various charges and costs levied on the premium or the fund value of the policy. Also, there are tax deductions and exemptions available under sections 80C and 80D (under old tax regime), and 10(10D) of the Income Tax Act 1961, which can lead to a bigger fund value. Besides, if your ULIP plan is not generating the desired returns, potential losses can be avoided through timely reallocation of the investment. Based on every such inputs shared, a ULIP policy calculator may estimate the probable returns or the life cover accordingly, leading to an informed investment decision thereby.
To evaluate financial products operating upon market-linked funds, a transparent detail of the fund choices and performances is of huge help. In a ULIP plan, the funds for investment are supposed to be chosen as per the policyholder’s risk appetite. Here, if the fund details are explicit and transparent, it may be easier to figure out how to allocate your investment to fetch the best possible returns. A ULIP fund calculator may assist you in tracing the probable returns in this case. But what if you’ve already made your fund choices and they are not performing as desired? Here, based on the fund performances^ and the situation of the market, one can reallocate the investment through fund switches and premium redirection to maximise returns.
In either case, a transparent disclosure of the policy features and fund details may aid in correct estimations and timely investment decisions. A good bet may be to use the ULIP fund value calculator and calculate all the possible cases to compare in terms of returns.
Before you seek help from any tool, it is better to understand its features well. This helps in using it in all possible ways and reaping the benefits in full. The same goes with online ULIP calculators too. Having a good clarity of the features of this financial tool may help you make the most of it and enjoy all the support it is designed to provide.
Following are the key features[6][3] that make unit-linked insurance plan calculator a helpful resource.
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When you decide to pick a tool for your convenience, knowing its benefits beforehand can always be worthy. Especially when it comes to a financial tool, knowing its benefits will may help you make the most of it and walk an extra mile towards your target. The same can happen with a ULIP policy calculator.
A unit-linked insurance plan utilises a part of your premium to provide the life cover while the rest is invested in funds of your choice to earn returns from the market. So, the maturity benefit of the policy depends on the fund value generated by the investment. A ULIP calculator is designed to save you from chunks of complicated calculations and bring the required estimations to your fingertips. Here, if you know the benefits, it may enable you to use the tool in a more efficient manner and ensure a more precise calculation.
The advantages of using a ULIP calculator[5][7][8] are as follows:
Suppose you have purchased a ULIP plan and, in turn, have invested in selected funds. Like any other investor, you may want to gauge how the investment is going to help you and how much returns can be anticipated. This is a necessary step, as you can always change the investment allocation through fund switches or the premium redirection facility if you feel the funds or the market are not going your way. Estimating the future returns may be easy if you resort to a ULIP calculator. If you provide the details of the premium paid, the selected funds, the corresponding rate of returns, and the policy tenure, it can provide you with accurate financial projections. Here the ULIP calculator can estimate for you the future returns from each of the chosen funds. Summing them up, you can arrive at the amount of wealth that can be accumulated from the total investment.
When you choose to invest in market-linked funds, the usual goal is to earn as much as possible. But with bigger gains come bigger risks too. So, while you look forward to good returns from your investment, securing the capital may also be your priority. Especially, if you are a risk-averse investor, avoiding potential losses and protecting the capital can be your prime concern. This becomes easier when you have an idea of how the funds are going to perform in a given situation.
In case of ULIPs. If you know beforehand how the chosen funds can behave in certain conditions of the market, it might help estimate the probable corpus that can be generated through investment.. This is where a ULIP investment calculator may come into the picture.
Even before making a purchase, a ULIP calculator can help you analyse a ULIP plan or compare it with its options. Here, based on the details of the policy term and probable premium payments, the calculator estimates the ROI and the potential returns. This may help you to understand the merit of your investment and assess your decision.
Investing in market-linked funds is a bit tricky. With the risk factor determining the gains, any investment can run into losses if the market turns unfavourable. And as it goes with market-linked funds, the higher the risk, the higher the gain. If you attempt to grow your money faster, there remains the risk of suffering a major loss too. Thus, it lies on the policyholder , whether he/she can withstand that risk. So, while wealth creation for a specific financial goal remains the target, it is crucial to align the investment to your ability to take risks.
The investment component in a unit-linked insurance plan lets you select the funds based on your risk tolerance. If you are willing to accept more risk to accumulate bigger wealth, the policy invests mostly in equities or related higher-risk assets and in debts or low-risk funds when you prefer an investment with lower risk. But how would you choose the best possible funds? The answer can be the ULIP calculator.
A ULIP return calculator estimates for you the projected returns from different fund allocations8,^ given the parameters like the chosen premium, policy tenure, desired corpus, and the rate of returns. It may thus let you compare and pick the assets that match your risk appetite as well as the wealth creation goal. Accordingly, you may be able to make informed investment choices.
Suppose Mr. A is looking to invest in a ULIP policy to create his retirement corpus and is scared to lose the capital. Mr. B, on the other hand, wants to grow his money through a ULIP policy to support his son’s dream startup venture, and he is willing to take risks for the same. Can both of them fulfil their targets through the same ULIP plan? Possibly no, as they look forward to a separate size of corpus, they may have different levels of affordability and risk tolerance, and correspondingly varied fund choices.
Every policyholder has their own parameters and different financial goals behind their investment decisions, according to which the choice of financial products needs to be customised. Especially in the case of ULIPs, plans should differ in addressing these varying needs, risk appetite, and affordability. A ULIP calculator could be an ideal choice. As you provide the inputs of the deciding parameters, accordingly it can offer a customised solution, suggesting the amount of premium, policy tenure, and fund allocation options to reach your desired financial goals. In turn, you may get to customise the ULIP plan according to your own unique needs.
Every investment in market-linked funds comes with its own share of risks. While the nature and behaviour of the funds that reflect in the returns, volatility of the market can also affect the resulting gains or losses. It’s therefore quite crucial to keep monitoring the market and adjust the investment strategy and fund allocations as per needs.
A ULIP, for example, is a life insurance plan, which also invests a portion of the premium paid in market-linked financial assets to fetch returns . Here, the policyholder gets to choose these funds and the investment allocation in them as per his/her risk appetite. It also allows reallocation of the investment through fund switches or premium redirection facilities. If the existing funds underperform, market gets volatile, or there’s a change in the policyholder’s financial need or risk appetite. A ULIP calculator can help in these situations.
A ULIP return calculator may aid in estimating the projected returns from different fund allocations at the start of the investment or in the course of it, given the specific financial target, the policy tenure, and the premium chosen. Based on that, a policyholder gets to evaluate the amounts of risks involved and the returns from his/her investment. Consequently, he/she may decide whether to go for a specific fund allocation, continue with it, or change the investment strategy.
There are many insurance companies in India offering a variety of ULIP plans. These plans have varied features, benefits, and fund choices catering to different needs, risk tolerance, and affordability. For any investor, the choice of a ULIP plan should match his/her monetary need and risk tolerance while being easy on the pockets. To know which of the available plans is most suitable for your requirements, risk-taking ability, and premium-paying capacity, you may need to research well and compare them.
Here, a ULIP calculator may play the role of a comparative analysis tool. On one hand, it estimates the premium payable for a desired corpus in a given policy tenure or vice versa. On the other hand, it can project returns for different fund allocations to help you assess the future value of your investment as well as the risk and rewards. Accordingly, a comparative study is feasible of the available plans, based on which you can choose the plan that aligns best to your investment goal and parameters.
While market-linked investments can be a good way to grow your money, the decision-making and strategy involves a lot of complicated calculations. Likewise, tasks like picking a suitable ULIP plan, making the fund choices, or altering the investment allocation demand a fair share of calculations too. Dreading this, many prefer seeking help from professionals instead of relying on their own capacities. In this aspect, the ease of calculations through a ULIP plan calculator may be considered its biggest benefit, which saves a lot of time as well.
A ULIP policy calculator simplifies the whole process and brings to the tentative values of premium requirements, size of corpus, and policy tenure, as well as the risk and returns from various fund allocation choices. These estimations are done instantly, providing a time-saving alternative to scary chunks of calculations. And for all these to happen, all you need is to key in minimal inputs like the base parameters in a given situation. For example, you can get the estimated fund/maturity value simply by submitting the monthly investment amount, the desired tenure, and the expected rate of return.
Online tools are usually crafted to simplify complicated assignments to help you attain the best possible solution to your queries. Especially, financial tools are designed to estimate or formulate certain values on your behalf to help you with your investment decision. In the process, they save you from dreaded calculations and provide results instantly. But here’s a catch, unless the tools are easy to use, people won’t have a clarity of how they work and neither be keen to use them. A ULIP calculator may score well on this point.
A unit-linked insurance plan calculator comes with a simple design and interface, which makes it user-friendly. There are defined spaces to key in or select the given parameters, and after that, all you need to do is click on the calculate button. Rest is taken care of by the calculator itself, and the values are generated in an instant. A ULIP calculator, therefore, may not just be easy to use but also a time-saving tool as well.
For ULIPs , a clarity of the financial objective for which the wealth needs to be accumulated helps in deciding how to go about it. The specific goal may lead to the target corpus, the corresponding premium allocation, fund choices based on risk appetite, and the reallocations as and when needed.
Here, the ULIP calculator may help you with the goal-orientated planning. If there’s clarity regarding the financial objective, corresponding monetary requirement, your affordability, and the risk appetite for wealth creation, an online ULIP calculator can estimate the probable premiums for you, the suggested policy tenure, the projected returns or losses from your fund choices, and the expected fund value that can be generated from your investment. In turn, having a goal-based strategy in place will be easier.
ULIP plans have different charges payable for the management of the policy as well as for the services offered to the policyholders. These charges, deductible from the premiums or the fund value, affect the amount of the death or maturity benefit of the policy. Knowing these charges clearly can enable the ULIP policyholders to decide, structure, or revise their investment strategies accordingly. This is where resorting to a ULIP return calculator online may benefit you.
Given the fund choices and their details, a ULIP calculator can provide the costs that you’ll have to incur for your policy.8 It estimates the amount to be deducted as charges towards premium allocation, mortality, fund management, policy administration, fund switch, withdrawal, or surrender of the policy, and the corresponding changes in fund value. This may give you a transparent detail of the costs associated with wealth creation through ULIP.
Every investment strategy needs to be uniquely crafted, as they are supposed to align with the respective policyholder’s needs and preferences. Take the case of unit-linked insurance plans, here, unless the fund choices are matched with the risk tolerance of the policyholder or the premiums align with his/her paying capacity, building the desired corpus may seem a tough task. Tracing the funds that would fetch favourable returns or deciding the premiums according to affordability can be daunting, though. And that’s where a ULIP calculator may offer its advantages.
A ULIP fund value calculator takes into account the amount and tenure of investment and the tentative rates of return to predict the probable returns. Based on that, selecting the funds may seem easier. Again, the online ULIP calculator enables you to check premiums for different policy tenures and corpus targets and vice versa. This may allow you to choose a premium schedule as per your affordability and accordingly personalise your investment strategy.
Knowing how to use financial tools available online may save you from painstaking estimations and spending unnecessary amount of time in those complicated calculations. For long-term investments through financial instruments like ULIP, which require estimations, resorting to an online ULIP calculator may take away a considerable amount of hard work and worries. But for that, you need to know how to use a ULIP calculator and have a good clarity of its functionality.
Here’s a step-by-step guide[4] if you’re planning to use a ULIP calculator from an insurance company website or an aggregator platform.
Understanding the functional details of any online tool is a prerequisite if you’re planning to take any decision based on its outcomes. Online ULIP calculators, for example, calculate the premiums payable for a ULIP policy for a specified life cover or desired corpus. It also calculates expected returns from the fund choices of the investment component, and the projected maturity benefit that can be earned in a specified policy tenure. This is vital because the estimations of the calculator may assist you in choosing affordable premium and in taking your pick from the available fund choices. The results predicted by the ULIP calculator may also guide you on when to avail yourself of the fund switches and premium redirection facility or when to withdraw funds or surrender the policy.
All of the ULIP-related decisions may tend to be correct if you have clarity on how the ULIP plan calculator works, what parameters it relies on to fetch the outcomes, and how to make the online tool work towards your benefits.
Here’s an overview[4] for the ease of understanding.
A ULIP policy levies different charges throughout the tenure of insurance and investment. These charges account for the operations, management, and services of the policy offered to you by the insurance provider. Typically, these charges get deducted from either the premium paid or the fund value generated by your investment. Accordingly, it’s either the death benefit or the maturity benefit of ULIP that gets affected.
When a unit-linked insurance calculator estimates the sum assured or projects returns or the fund value for you, it doesn’t simply base on the premium payable or the policy tenure. The calculator also offers multiple scenarios that will be levied by the insurer.8 The calculator Thus, it may be worthy to know about these charges beforehand so that you understand the estimations well.
Here’s a detailed look at the charges to be considered[9] [10].
Charge Type | Description |
---|---|
Premium Allocation Charge | Levied as a fixed percentage of the premium, the premium allocation charge (PAC) covers the cost of underwriting, etc., required before purchasing units for investment by the policy. This percentage varies from company to company and gets deducted from the premium paid.. Suppose the premium allocation charge is 15% in your policy, and you’re paying Rs 60,000 as a premium. Here, Rs 9,000 will be deducted as PAC, and the remaining Rs 51,000 will be available for investment. |
Fund Management Charge | The fund management charge (FMC) in a ULIP is the fee levied by the insurance company for the management of your investment in the funds selected by you. Charged on a daily basis, FMC is deducted from the calculations before estimating the NAV (Net Asset Value) of the chosen ULIP funds. This is also levied as a percentage that varies across the nature of funds. However, as per the guidelines of the Insurance Regulatory and Development Authority of India (IRDAI), the upper cap for FMC is set at 135 base points of the fund value generated. Usually, insurers charge a higher percentage of FMC for equity funds and a lesser percentage for the non-equity ones. |
Policy Administration Charge | To maintain a ULIP policy and take care of its smooth operation and timely services, the insurer levies a fee. This is called the policy administration charge, which covers the administrative expenses by the insurance provider. The policy administration charge is payable on a monthly basis and gets deducted through the cancellation of units from all the selected funds. The deductions can vary at a specified rate or can remain constant throughout the policy term. |
Mortality Charge | The insurance component in a ULIP policy forms the life insurance cover for the policyholder, which is payable as the death benefit upon his/her untimely demise within the policy term. To cover this risk and cost of paying the death benefit, a fee is levied by the insurer, known as the mortality charge. This charge is deducted on a monthly basis and depends on the age, sum assured, etc. Usually, as a person ages, the life expectancy gets reduced. Accordingly, mortality charges in ulip increase as you age and get deducted proportionately from the chosen funds. |
Discontinuance Charge | A ULIP policy comes with a lock-in period of 5 years, within which no withdrawal or surrender of the policy is allowed. However, if there’s an emergency or you’re dissatisfied with the fund performance, you can choose to discontinue with the policy. The money then, moves to a discontinuance policy (DP) fund post deduction of the discontinuation charge for early surrender and is paid to you after the completion of the ULIP lock-in period. The discontinuation charge is levied as a percentage of the premium or the fund value. Discontinuation fee is applied to the unit fund for unit-linked insurance products when the policyholder chooses to surrender or discontinue the contract in accordance with regulations. It's typically stated as a percentage of the fund or as a percentage of the annualized premiums for regular premium contracts. No discontinuance charge is imposed on top-up premiums. It may also be worthy to note that, no discontinuation charge is payable for surrendering the policy after the lock-in period which is minimum five years. |
Partial Withdrawal Charge | A ULIP policy allows partial withdrawals of the fund after the 5-year lock-in period is over and all the premium payments are up-to-date. While some ULIP plans offer unlimited withdrawals, some may allow 2-4 partial withdrawals only. Insurers may offer some free withdrawals, while for each of the rest, a partial withdrawal charge has to be paid. This charge, if levied, varies between Rs 100 and 500 per withdrawal across insurance companies and gets deducted from the fund value. |
Switching Charge | If you feel your funds are underperforming or anticipate a volatility in the market, or if there’s a change in your financial goals or the risk appetite, you can reallocate the investment in your ULIP policy. This can be done through a fund switch within the choices of equity or debts. Typically, every insurer offers a few free fund switches every year, exceeding which a charge is payable for every switch. These charges can be paid as deductions from the fund value within Rs 100-500 per switch or by cancellation of units proportionately from all the chosen funds. |
Miscellaneous Charges | Other than the specified charges, the insurer may levy some other fees on the alteration of conditions in the ULIP Plan for eg change in policy term etc. This is covered under the miscellaneous charges. For example, if you wish to revise your premium payment frequency, this is the additional charge you’ll have to bear for the service. |
Like other insurance providers in India, Bajaj Allianz too comes with ULIP plans. But before picking a policy to invest your hard-earned money, it is worth checking and comparing the available plans as well as identifying the aspects that suit your requirements. This way, you can trace the best policy according to your financial goals, monetary needs, and risk appetite. Here, the Bajaj Allianz Life ULIP Calculator [12] may come to your aid. Knowing how to use it may save you from complicated calculations.
A handy and simple online tool, the Bajaj Allianz Life ULIP Calculator can be accessed from our company website. As you feed the crucial details like target corpus, preferred policy tenure, and expected rate of return, the calculator estimates for you the probable premium payable for a specified amount of investment for a defined period. Here, the key information that needs to be submitted is:
In this calculator, there are separate boxes to adjust the bar and define details like the desired amount for life goals, the preferred investment horizon and allocations, the affordable premium, and the returns expected. Here there’s an additional option of dividing the investment allocation and expected rate of returns between market-linked and risk-free assets. Post that, all you need to do is to click on the calculate button to get the projected maturity benefit value from your investment.
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A unit-linked insurance plan (ULIP)[7] is a life insurance plan with market linked investments . Here, a portion of the premium you pay goes to form the life cover in your policy, while the remaining part is pooled in to invest in market linked funds and buy units of financial assets. These funds are chosen based on your financial goals and risk tolerance. For example, if you are ready to take high risks to earn higher returns for a faster wealth creation, you may choose to invest in equity funds or similar high-risk, high-gain options.
A ULIP calculator[5] is a simple online tool, available on insurance websites, that calculates for you the projected returns from your investment, given the choice of premium, policy tenure, preferred fund choices and allocations, and expected rates of return. Based on the details shared, the online ULIP calculator performs complicated calculations in an instant and provides you with probable estimates. This may help you assess the risk and returns from your investment and strategize accordingly.
Yes, the ULIP calculator takes into account the life insurance coverage[4] and calculates the returns based on the investible amount available from the premium.
The ULIP NAV[7] is calculated as below:
NAV = [(Value of Current Assets + Market Value of Investments Held) – (Value of Current Liabilities & Provisions)]/Total number of outstanding units on date
The key charges in a ULIP[9] are:
These charges are calculated as a percentage of the premium or the fund value or are deducted as a specified amount. Alternatively, some charges are deductible as cancellation of units proportionately from all the chosen funds.
A Unit Linked Insurance Plan is a life insurance plan with a market linked investment component , where the premium is split between the two parts. Whereas other investment tools like the systematic investment plan are pure investment products that invest the money in market-linked funds only and address your wealth creation goals.
The ULIP has a lock-in period of 5 years which offers life insurance and invests your money in market-linked funds to fetch returns. Here, the money you invest grows through the power of compounding that builds bigger wealth over a long time. Both the lock-in period and the wealth creation process may make it worthy as a good option for long-term goals[3].
Yes, a ULIP calculator[4] can help offline buyers too. He/she can use the online calculators for a better understanding of returns, a comparison of available plans, and to choose a plan and decide the premium, sum assured in ulip, policy tenure, and fund allocations before going for an offline purchase of policy.
There is no specific amount designated as the minimum premium required to invest in a ULIP[11]. The minimum premium requirement varies from insurer to insurer and can be as low as Rs 1,500 a month.
The maturity benefit of a ULIP policy[3] is calculated as the total fund value of the investment on the day of maturity.
You can pay ULIP premiums in different methods as follows:
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With the Underinsurance Calculator, check if your Life Cover is atleast 10x of your Annual Income.
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Plan your investments effortlessly and achieve your financial goals with our easy-to-use SIP Calculator.
Answer a few simple questions to know how prepared you are for your retirement.
Answer a few simple questions to know the corpus required to fulfil your Life Goal.
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Use this calculator to know how savings from regular expenses can help you achieve your Life Goals.
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Know the amount to invest today to have the corpus to accomplish your Life Goals tomorrow.
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Know your income tax based on the taxable income and explore Life Insurance plans to save more tax.
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#Survey conducted by brand equity – Nielsen in March 2020
*T& C apply - The guaranteed benefits are dependent on the purchase price & annuity option chosen. For more details please refer to sales brochure.
1Product feature/benefit mentioned above are dependent on variant
2Above illustration is considering Male aged 25 years | Non-Smoker | Life Cover Variant | Policy term (PT)– 30 years | Premium Payment Term (PPT) – 30 years | Sum Assured opted is Rs. 1,00,00,000 | Online Channel | Medical rates | Annual Premium Payment Mode | Premium shown above is exclusive of Goods & Service Tax/any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only.
31% Discount is available for regular premium payment and limited premium payment frequency of Bajaj Allianz Life Smart Protection Goal - A Non Linked, Non Participating, Individual Life Insurance Term Plan
^Subject to eligibility and no adverse disclosure
^^As per variant opted. The variant chosen at inception cannot be changed during the policy term
~Tax benefits as per prevailing Income tax laws shall apply. Please check with your tax consultant for eligibility.
Best Seller refers to Bajaj Allianz Life Insurance plans which have been bought by large number of customers through the website since their launch.
**Past performance is not indicative of future performance.
##Our policy covers COVID 19 claims subject to policy terms and conditions being met.
%Conditions Apply – The Guaranteed benefits are dependent on policy term, premium payment term availed along with other variable factors. For more details please refer to sales brochure.
The output generated through calculator are on the basis of the data filled in by you and is being provided to you solely for your reference purpose and not to be construed as investment advice. Please seek independent advice from your insurance consultant before making any investment decisions. While proper caution has been taken in designing this calculator, Bajaj Allianz Life Insurance Co. Ltd. assumes no liability for the accuracy of the information and data provided in this tool
IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER
The Unit Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of the fifth year.
ULIPs are different from the traditional insurance products and are subject to the risk factors. The premium paid in ULIPs are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.
Tax benefits as per prevailing Income tax laws shall apply. Please check with your tax consultant for eligibility
^Past performance is not indicative of future performance.
The output generated through calculator are on the basis of the data filled in by you and is being provided to you solely for your reference purpose and not to be construed as investment advice. Please seek independent advice from your insurance consultant before making any investment decisions. While proper caution has been taken in designing this calculator, Bajaj Allianz Life Insurance Co. Ltd. assumes no liability for the accuracy of the information and data provided in this tool.
Claim Settlement Ratio of 99.29%~