How to Use a ULIP Calculator to Plan Your Future?
The unpredictability of life can be very unnerving. Despite all your financial plans, you may find yourself in awkward positions that disallow you to pursue your plans with your regular income. That is why it is so important to set up a secondary income source.
While there are various means to do so in today’s busy times, one of the simplest methods is to use your life insurance policies for financial stability. A life insurance plan can not only provide a financial safeguard for your loved ones in the event of your demise but can also help you earn more during your lifetime. One such solution is a ULIP plan.
What are ULIPs?
ULIPs are unit-linked insurance plans. These are a variety of life insurance policies that allow you to invest wisely in the current unit-linked market and earn substantial profits.
Typically, to invest in the market, you will need to undergo a rigorous procedure of building an account, finding the right brokers, verifying your identity and income, and so on. ULIPs make this process easier.
When you opt for a ULIP, your insurer takes the responsibility of identifying suitable unit-linked market options in which you can invest your money. You can choose the type of ULIPs you want to invest in based on your risk appetite.
The premiums you pay towards your life insurance plans are utilised to invest in the market. You can choose from equity and debt funds or mix and match for a balanced investment portfolio. As the market increases, so do your profits, which you can withdraw at your discretion to deal with financial needs.
What is a ULIP calculator?
ULIPs are incredible means of building an investment habit and earning profits to cope with your current financial situation. However, it is important to have a goal in mind for the amount that you would like to earn from ULIPs. That is where a ULIP calculator comes into play.
A ULIP calculator is a simple online gadget that you can find on an insurer’s website or app. It allows you to feed the following selections to derive a reasonable plan to reach your financial goals:
- The amount that you need to earn from ULIPs.
- The tenure for which you would like to invest your money in order to make your desired profit. Keep in mind that when investing in Unit-linked markets, it is best to keep your money longer to earn maximum profits.
- Your risk appetite when investing your money. This would include if you want to invest more or all your money in risk-free markets, where the returns are lower or in market-linked plans, where the risk is high, but so are the profits. You can also mix the two for a balanced portfolio and invest in both types of market instruments.
- Your expected rate of return from each type of market instrument. Based on your risk appetite, you can choose how much you want to make from risky equities and risk-free investments annually.
Based on your preferences, the ULIP calculator assesses the available market plans and derives suitable investment solutions. You will need to share your name and contact information so the ULIP calculator can determine a customised plan.
The ULIP calculator takes other important factors such as market progressions into account to derive your premium for ULIPs and the suitable coverage. While the market is volatile, based on the results of the ULIP calculator, you can have an approximate understanding of your returns and an accurate idea of the required investments.
ULIP investment options for women & single mothers
These days, single parenting has become a major component of independent women. However, there are certain risks associated with these forms of parenting styles. Not only do you need to plan for your own life, but you also need to set up a good and comfortable life for your child during your lifetime and after your demise.
ULIPs are suitable solutions to handling the financial aspects, especially for single mothers, or even independent women. The ULIP investment options for women & single mothers allow you to plan efficiently without hindering your current financial situations.
ULIP investment options for women & single mothers take into account the setbacks that you face and offer suitable solutions. These plans allow you to build a corpus without upsetting your current financial needs.
You can invest your hard-earned money into the market and earn remarkable profits from either equity or debt funds based on your risk appetite. You can also divide your investments into both risky and risk-free investments. The latter allows you to make substantial profits from volatile equity funds while ensuring steady growth with risk-free debt funds.
ULIP investment options for women & single mothers also help build a corpus for your dependents while you earn from them to address major financial needs during your lifetime.
