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Contact us
To Buy: 1800-258-5899 (9:30 AM to 6:30 PM)
For Existing Policy: 1800-103-0003/ 1800-180-0003/ 1800-891-0003
customerservice@canarahsbclife.in
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ULIP is one investment option that you can use for both important and aspirational goals. Not only that, but you can also use ULIP to allocate your savings regardless of whether you are an aggressive investor or a safe player.
ULIP are also a perfect investment option for goals, which you would want to protect even from your untimely death. For example, a child’s higher education and marriage goals.
ULIP calculator is an online, free to use, tool. This tool enables you to estimate the returns from a ULIP investment plan and assess your investment amount. The calculator considers your investment plan parameters and provides you with a resulting number for investment.
For example, you can select an investment tenure for your ULIP investment, decide your asset allocation ratio and select the rate of return on these assets. Depending on the investment amount you aim to invest as a premium, the calculator gives you a value you can expect at maturity or vice versa.
The calculator also considers minor complexities, like the frequency of premium payments. You can pay the premium monthly, quarterly or annually in a ULIP. The calculator can help you estimate the future value of your savings considering such differences as well. In short, the calculator takes away the need for you to be a financial wizard when you want to have better clarity on your investment decision.
ULIP calculator can accept multiple inputs from your investment plan details. You need to make sure to provide all the inputs as accurately as your actual investment plan for ULIP. Follow the steps below to use the calculator efficiently:
Select the amount you want to invest regularly (regular premium) or the targeted goal value you want to achieve in future.
Select your investment horizon. This is the period for which you can continue investing money.
Select the total time to goal. This is the time you have until you have to provide for the goal. This can be more than your investment period but never less than that.
Divide your investment amount between high-risk (equity funds) and safe (debt funds) portfolios. This is your portfolio mix depending on your risk appetite. You can create a mix or allocate 100% to one of the two folios.
You can select the return you expect from both the fund types (equity and debt). For better preparation, try a conservative rate of return.
Calculate the expected future value of your investment or the amount you need to invest to achieve your financial goal.
ULIP calculator has many features which make it more useful and convenient to use. Here are some of the important features of the ULIP calculator:
The calculator allows you to change all the variables in the estimate. Thus, you can have total control over the factors affecting the results.
The calculator gives you enough space and range to choose a large goal or adequate rate of return. Similarly, you also have enough space to select the adequate time horizon for any investment goal you are planning.
The calculator interface is easy to understand and use. You can get clarity on any of the heads you find too difficult to understand.
The calculator can help you plan any financial goal based on your targeted financial value. The estimated amount clearly indicates the regular savings that will help you achieve your goal using a ULIP investment plan.
You can compare multiple different asset mixes to plan for your goal efficiently.
ULIP calculator offers many benefits if you are planning to invest in unit-linked plans. Few important benefits of the ULIP calculator are:
Calculating ULIP investment results is not a simple mathematical exercise. ULIP has multiple funds options and selecting more than one will automatically double your efforts. The ULIP calculator, however, takes only a fraction of a second to perform such estimates.
You can invest more confidently, knowing the possible results of your investment plans. Also, when you decide on a plan after comparing it with others, you can be more satisfied with your decision and stick to it for the long haul.
Tax benefits are an important part of ULIP investments. However, ULIPs are long-term investments and benefit you more if you continue investing for more than tax-saving. The calculator can clearly show you the impact of such an effort.
Using the online ULIP calculator you can run multiple iterations to see which allocation mix suits your goal the best. Thus, increase the effectiveness of your investments while keeping the investment risk to a minimum.
Investment tenure is an important factor in your goal plan. If your goal timeline is flexible, it is better to utilise a larger part of it to build your corpus. Use the calculator to optimise your investment horizon.
ULIP investments are subject to a few expenses. These expenses are deducted out of the fund value of your portfolio. Following are the expenses usually applicable to ULIP:
Applicable as a fixed percentage of your premium investment. This charge is deducted directly out of the premium you deposit.
These are monthly charges related to policy management and operations.
The invested money is allocated to different equity, debt and balanced funds. Each of these funds has its charges of managing your invested monies.
If you want to withdraw an amount before maturity, you can do so any time after a lock-in period of 5 years. A small charge is applied to the amount you withdraw in this manner.
A mortality charge is applied to your ULIP funds on the mortality sum assured. The mortality sum assured is the balance life cover amount after deducting your ULIP fund value. Thus, as your fund value grows, the mortality charge decreases.
The invested money is allocated to different equity, debt and balanced funds. Each of these funds has its charges of managing your invested monies.
If your ULIP has riders, like accidental death and disability, premium protection, or critical health, charges for these added benefits will be deducted under this head.
You can invest in a ULIP plan in a lump sum or as regular instalments. In the case of regular investments, the rate of return on ULIP investments is calculated based on the premium amount, premium payment tenure, policy term and maturity value. Return estimation on single premium plans requires only the investment amount, policy term and maturity value.
ULIP plans are one of the best long-term investments for these reasons
Online ULIP plans like Invest 4G from Canara HSBC Life Insurance are the best ULIP plans to invest in if you are comfortable with online policy management. Otherwise, you can opt for other ULIP plans with low expense ratios.
ULIP plans have a lock-in period of five years. It is recommended that you continue investing in your ULIP plan for this period when investing with regular premiums. The Lock-in period is important if you have availed tax benefits on the invested amount. You can also make partial withdrawals after this lock-in period is over.
Use the online ULIP calculator to estimate the amount you will possibly have in your plan at the end of the lock-in period.
ULIP maturity amount is not taxable if you have bought your ULIP plans before 1st Feb 2021. For the plans bought on or after this date, the maturity value will be taxable if you invest more than Rs 2.5 lakhs a year in the ULIP plans (bought after 1st Feb 2021).
The maturity amount will also be taxable if you invest more than 10% of the base life cover amount in any year in the plan.
Both mutual funds and ULIP plans have their place in a great investment portfolio. The primary difference between both investments is that while mutual funds give you more control over your money, ULIPs offer goal protection. The life insurance component in ULIPs can ensure that your family achieves the goal you set the investment for, even after your untimely demise.
ULIP plan will pay the fund value at maturity, and the policy will terminate. Few plans including Invest 4G ULIP plan, offer settlement options at maturity. This option allows you to receive the fund value from the plan as a regular sum or annuity instead of a lump sum. You can use the ULIP calculator to estimate the maturity value of your ULIP investment.
ULIP and PPF both are two great investment options for safe investors. Ideally, you should have both ULIPs and PPF plans in your portfolio as both offer unique benefits. While ULIP offers to protect your family’s financial goal, PPF offers a sovereign guarantee.
Yes, so far as you follow these conditions with your ULIP investments. The total annual investment into all ULIP plans you bought after 31st Jan 2021, is less than Rs 2.5 lakhs. You have not invested more than 10% of the life cover amount in the ULIP as a premium in any policy year.
Also, if your returns in the ULIP plan become taxable, they will be taxed at maturity and not when it is accrued. You also get the benefit of indexation as ULIPs will be taxed as debt funds if taxable.
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November 03, 2021
November 03, 2021
