7 Reasons Why You Must Use a Return-on-Investment Calculator
ULIP, usually called return on investment insurance plans, are investment integrated insurance plans. They provide the benefits of investment and insurance simultaneously. With a ULIP plan, you have a chance to increase your money invested in the form of premium payments. It is not possible in other insurances, where only the invested money remains constant without any increase.
But, before investing in any scheme, you need to calculate the returns from the investments. It will help you to plan and choose a better investment scheme. The same rule is applicable for ULIP Plans. You can know the returns from a ULIP with the help of a return on investment calculator, also known as a ULIP calculator.
Return On Investment Calculator
A return-on-investment calculator is like an insurance premium calculator. It uses the personal information, inputs from the user, and gives suitable plan options and investment amounts. So, it provides the users with the option to invest in ULIP. The following are the steps on using a return-on-investment calculator:
Step 1: Input your name
Step 2: Input the contact details.
Step 3: Input your annual income
Step 4: Input the required insured sum
Step 5: Input expected term duration
Step 6: Input premium payment interval
Step 7: Choose between instruments with different risk ranges
Step 8: Input expected return rate
Step 9: Click on Calculate
Now the ULIP calculator will give you various plans. Compare and choose from the results. If you do not like any plan, you can modify the inputs till you find the best plan.
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7 Reasons Why You Must Use a Return-on-Investment Calculator
A return-on-investment calculator is beneficial. There are several other reasons to use it other than the benefit of plan comparison. Read on to know the main 7 reasons for using a ULIP calculator.
Accurate Premium Amounts
A return-on-investment calculator is a proprietary online tool. So, it will help you to find the exact investment amounts you will have to pay as premiums. You can use this information to plan your finances accordingly. Also, knowing the amounts, you can prepare to arrange the money within time.
The calculator also gives quotes, so if someone else is paying the bill for your ULIP, you can give this quote to them. Employers give insurance policies to their employees. If your employer gives you the freedom to choose from a ULIP plan, you use this calculator to find a suitable plan. And then give the quote from the calculator to your employer to move the necessary funds.
Instant Results
Since a ULIP calculator is online and based on algorithms and databases, it gives instant results. You can get the calculations and results at the click of a button. It is a very convenient feature and one of the main reasons people often use it.
Information on Terms and Conditions
The best reason to use the return-on-investment calculator is that it has the terms and conditions of each policy. Reading the terms and conditions before purchasing a policy is necessary. So, if a calculator has these details inside it, that becomes convenient.
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Proper Investment Planning
The results from an ROI calculator will help you create a proper investment plan. You can even convert your existing SIP in shares or other commodities into ULIP plans.
Click here to know more about what is ULIP and how it functions.
Detailed Information
Another great help from such a calculator is that it gives information on every aspect of the plan. You could know various bonuses, deductions, maturity benefits from the calculator.
For example, ULIP plans have several tax benefits per the Income Tax Act of 1961, like other insurance plans. The calculator will give you knowledge of such provisions and the taxable amounts.
Ease in Usage
A ULIP calculator is easy to use. You must have understood it from the steps to use the calculator. You will not need high-level accounting or computer skills to operate and find results.
Free to Use
Despite so many features and benefits, anyone can use the online calculator for free. Any person with access to the internet can visit the online calculator page. There they can fill in the details and get the results.
Now you know why using a return-on-investment calculator is essential. You must always use a ULIP calculator before purchasing a good ULIP plan. It will give you the necessary information and suggestions on various plans. And because the ULIP insurance company develops the calculator, the calculator will have more information on products than external sources
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