Are you a cautious buyer? Are you someone who always checks the price tag before making a purchase? Then, it would probably be correct to say that you understand the value of smart planning! When it comes to investments, a ULIP calculator can be your ultimate budgeting tool.
A ULIP plan calculator is a free online tool that allows you to get a fair estimate of the premiums that you will have to pay, along with a probable forecast of the returns. As the calculator is a dynamic tool, you can enter/ slide/ move around the variables till the time you are able to the perfect balance between savings and insurance. Continue reading to learn how this tool helps you create a monthly budget and transform your investments.
ULIP plan calculator
To make the most of a ULIP calculator, it is first essential to understand how a ULIP works. ULIP stands for a unit-linked insurance plan. One of the biggest ULIP benefits is that it offers insurance as well as investment. A part of the premium that you pay is diverted towards coverage, while the remaining is invested in funds of your choice.
A ULIP calculator is an easy-to-use, free online tool that allows you to get a clear picture of how your policy will work and what returns you can expect. You fill in the required details, such as your financial goals, your investment tenure, the returns that you are anticipating and the risk you are willing to take. This straightforward process gives you a clear picture of your financial trajectory.
Whether you’re looking to save for a child’s education, your retirement, or that dream home, the ULIP calculator provides clarity on how much you need to invest monthly. Another benefit of a ULIP calculator is that it makes it easier for you to plan your tax benefits. As you would know, the premiums that you pay towards your ULIP qualify for tax benefits. Under Section 80C of the Income Tax Act, you can save up to ₹1.5 lakh annually. Using a calculator lets you plan your ULIP premiums strategically to maximize tax savings while ensuring financial growth.
Using a ULIP plan calculator
Here are the simple steps that you need to follow:
- Start by entering the amount you’re willing to invest, monthly, quarterly, or annually, as available
- Select the tenure for which you plan to stay invested
TIP: ULIPs generally work best when held for the long term, usually 10-15 years. - Depending on your risk appetite, select the funds/ category of funds that align with your financial goals
- Enter the expected annual rate of return based on your selected fund type. Keep in mind higher risk may show you a higher return
- The calculator will now show you the exact premium required, along with the expected maturity amount.
Most ULIP plan calculators allow you to make as many changes as you want. You can move the variable factors till the time you reach a satisfying answer. Using the calculator, therefore, comes in very handy when you need to create a budget. Simply put, ULIP plan calculator helps you see the bigger picture; it gives you a fair estimate of how much you’ll need to invest monthly to achieve specific milestones.
Let us take the example of 28-year-old Suman Agarwal. Suman wants to invest in a ULIP without disturbing her ongoing monthly budget. She tries the ULIP plan calculator to see her options. Take a look:
| Scenario A | Scenario B | Scenario C | |
| Your financial goal | ₹50,00,000 | ₹75,00,000 | ₹75,00,000 |
| Investment tenure | 10 years | 12 years | 15 years |
| Risk-free instruments | 50% | 25% | 50% |
| Market linked instruments | 50% | 75% | 50% |
| ROI from Risk-free instruments | 5% | 8% | 8% |
| ROI from Market linked instruments | 10% | 15% | 15% |
| You need to invest yearly | ₹3,55,624 | ₹2,92,757 | ₹4,35,879 |
| You need to invest monthly | ₹29,635 | ₹24,396 | ₹36,323 |
The calculator thus simplifies budgeting. Suman now knows how much of her income should go toward the ULIP premiums. She can then allocate the rest to essential expenses, emergency savings, or other investments. Thanks to the calculator’s ease of use, she can get an idea of the returns that may come with different investment tenures, financial goals, and fund types (e.g., equity, debt etc,.) and decide which suits her risk tolerance.
Over to you
Whether you’re planning for a foreign holiday, a dream home, your child’s education, or long-term wealth creation, a ULIP plan calculator ensures your financial goals stay on track without straining your monthly budget. By offering clarity, customisation, and control, the calculator helps you align your investment strategy with your lifestyle. So, take control of your finances today. Use a ULIP calculator to build an investment plan that grows with you!
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