ULIP Return Calculator

A ULIP Calculator is a powerful financial tool to compare plans, estimate maturity amounts and project returns, helping you achieve your financial goals. Calculate your investment and returns with a Unit-linked Insurance Plan calculator.
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3 min
03-September-2024

Unit Linked Insurance Plans (ULIPs) have gained popularity as a versatile investment-cum-insurance product, offering policyholders the opportunity to invest in market-linked funds while providing life insurance coverage. Policyholders have the flexibility to choose from a range of investment options, including equity, debt, or balanced funds, based on their risk appetite and financial goals. To assist individuals in making informed decisions regarding their ULIP investments, ULIP calculators have become invaluable tools, empowering individuals to calculate their coverage, premiums, investment potential, and returns with ease.

Read on to know about what ULIP plan calculators are, why they are beneficial, their features, and the advantages they offer.

Read about what is ULIP.

What is an ULIP calculator?

An ULIP calculator is an online tool provided by insurance companies or financial institutions to help individuals assess various aspects of their ULIP investments. ULIP plan calculator enables users to calculate their insurance coverage, premium payments, investment returns, and fund value based on their input parameters. These parameters include age, sum assured, premium frequency, investment horizon, and expected rate of return. ULIP return calculators mathematical algorithms to provide accurate projections and assist users in making informed decisions regarding their ULIP investments.

Additionally, a unit linked insurance plan calculator helps users understand the impact of market fluctuations on their investments, as ULIPs are market-linked products. It allows policyholders to compare different funds, asset allocations, and expected returns based on their risk tolerance. Many insurance providers integrate these calculators into their websites, offering transparency and ease of decision-making.

How does a ULIP calculator work?

A ULIP calculator works by taking key inputs such as the premium amount, investment duration, expected rate of return, and applicable charges. It uses these inputs to project the potential returns of a Unit Linked Insurance Plan (ULIP). By simulating market conditions and accounting for fund management, premium allocation, and mortality charges, the ULIP plan calculator provides an estimated maturity amount. This helps investors visualise their future savings and make informed decisions about their ULIP investments.

Also, check: Savings plans

Why should you use an ULIP calculator?

Using an ULIP plan calculator offers several benefits:

  • Accuracy: ULIP plan calculators provide accurate projections of insurance coverage, premium payments, and investment returns based on user-input parameters, enabling individuals to make informed decisions aligned with their financial goals.
  • Customisation: Users can customise their ULIP plan calculations by adjusting parameters such as sum assured, premium frequency, investment horizon, and expected rate of return to suit their individual needs and preferences.
  • Comparison: ULIP plan calculators allow users to compare different ULIP plans offered by various insurers based on features, benefits, premiums, and projected returns, helping them choose the most suitable plan for their requirements.
  • Financial planning: By using an ULIP calculator, individuals can assess their insurance coverage and investment potential, enabling them to develop comprehensive financial plans and achieve their long-term financial goals.
  • Transparency: ULIP calculators promote transparency by providing users with clear and detailed projections of their insurance coverage, premium payments, and investment returns, fostering trust and confidence in the ULIP product.

Additional read: Permanent life insurance

How to calculate ULIP investment returns online in 2025?

ULIP return calculator helps estimate potential earnings based on premium amount, policy term, expected returns, and fund type, providing a clear projection of your investment growth. Follow the below guide to calculate your ULIP returns online using the ULIP return calculator:

  • Access a ULIP calculator: Visit your insurance provider’s website or any reliable financial platform offering a ULIP calculator.
  • Enter investment details: Input the premium amount you plan to invest, including the frequency of payments (monthly, quarterly, annually).
  • Select policy term: Choose the duration of your ULIP policy, typically ranging from 5 to 25 years.
  • Expected rate of return: Enter the expected rate of return based on market performance and fund selection.
  • Additional charges: Include any applicable charges like premium allocation, fund management, and mortality charges.
  • Calculate: Click the 'Calculate' button. The ULIP plan calculator will provide an estimate of the maturity amount, showcasing potential returns based on the provided inputs.
  • Review and compare: Review the calculated returns and compare different ULIP plans to make an informed investment decision.

Read more: ULIP returns

What are the key features of ULIP calculator?

Here are some key features of the ULIP return calculator:

  • Insurance coverage calculation: ULIP calculators enable users to calculate their insurance coverage based on factors such as age, sum assured, and premium frequency, providing clarity on the extent of financial protection offered by the ULIP plan.
  • Premium payment calculation: Users can determine their premium payments for different ULIP plans by inputting parameters such as age, sum assured, premium frequency, and policy term, helping them budget effectively and manage their finances.
  • Investment return projection: ULIP calculators provide projections of investment returns based on user-input parameters such as expected rate of return, investment horizon, and fund allocation, allowing users to assess the growth potential of their ULIP investments.
  • Fund value estimation: Users can estimate the fund value of their ULIP investments over time by inputting parameters such as premium payments, investment horizon, and expected rate of return, helping them track the performance of their investments and make informed decisions.

Also, read: Life insurance calculator

What are the key benefits of ULIP calculator for financial planning?

Here are the key benefits of ULIP calculator:

  • Financial planning: ULIP calculators assist users in developing comprehensive financial plans by providing projections of insurance coverage, premium payments, investment returns, and fund value, enabling them to align their investments with their financial goals.
  • Informed decision-making: By using ULIP calculators, individuals can make informed decisions regarding their ULIP investments based on accurate projections of insurance coverage, premium payments, and investment returns, enhancing their financial literacy and confidence.
  • Comparison shopping: ULIP calculators facilitate comparison shopping by allowing users to compare different ULIP plans offered by various insurers based on features, benefits, premiums, and projected returns, helping them choose the most suitable plan for their needs.
  • Transparency and trust: ULIP calculators promote transparency and trust by providing users with clear and detailed projections of their ULIP investments, fostering transparency in the insurance industry and building trust among policyholders.

Additional read: Life insurance definition

What formula is used to calculate returns on a ULIP?

The ULIP calculator uses a standard formula to estimate returns based on premium payments, fund performance, and market-linked growth. The general formula used is:

Fund value = Total units allocated × Net Asset Value (NAV) per unit

A ULIP plan calculator considers factors like investment tenure, premium frequency, and expected returns to provide an accurate projection of the potential maturity amount. It helps investors assess their portfolio’s growth, making it easier to plan long-term financial goals effectively.

Pro Tip

Secure your future with ULIP – a smart dual-benefit plan offering investment growth and life cover at affordable premiums

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What are the ULIP charges?

Following are some of the applicable ULIP charges:

  • Premium allocation charge: A percentage of the premium paid is deducted to cover the cost of allocating funds. This charge is higher in the initial years.
  • Fund management charge: A fee for managing the investment funds, usually deducted daily from the fund value.
  • Mortality charge: Covers the cost of life insurance protection, varying based on the policyholder's age and sum assured.
  • Policy administration charge: A fixed fee to cover administrative costs, typically deducted monthly.
  • Surrender charge: Imposed if the policy is surrendered before the completion of a specified period. The charge decreases over time.
  • Miscellaneous charges: Other potential fees such as fund switching or partial withdrawal charges.

Use a ULIP calculator or ULIP returns calculator to see how these charges impact your returns and help you make informed decisions.

Also, check: Term insurance plans

Conclusion

In conclusion, ULIP calculators serve as invaluable tools for individuals seeking to maximise the potential of their ULIP investments. By providing accurate projections of insurance coverage, premium payments, investment returns, and fund value, ULIP calculators empower users to make informed decisions aligned with their financial goals. Whether it is assessing insurance needs, planning for the future, or comparing different ULIP plans, ULIP calculators play a vital role in helping individuals achieve financial security and prosperity.

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Frequently asked questions

How is an ULIP calculated?
ULIPs are calculated based on various factors such as the sum assured, premium amount, policy term, fund allocation, and expected rate of return. The premium paid by the policyholder is divided into two parts: one for insurance coverage and the other for investment in equity, debt, or balanced funds. The insurance company deducts charges such as mortality charges, administration charges, and fund management charges from the premium before investing the remaining amount in the chosen funds. The fund value of the ULIP is determined by the performance of the underlying funds and is subject to market fluctuations.
Is investing in ULIP for 5 years a good idea?
Investing in ULIP for 5 years can be a good idea if you have a short-term financial goal and are willing to take on market risk. However, ULIPs are generally recommended for long-term investments due to their market-linked nature and the potential for higher returns over an extended period. Before investing in ULIP for 5 years, consider factors such as your risk tolerance, investment objectives, and financial goals.
Which is better, ULIP or SIP?
The choice between ULIP and SIP depends on your investment goals, risk tolerance, and financial situation. ULIPs offer the combined benefits of insurance and investment but come with higher charges and fees. SIPs (Systematic Investment Plans) are a way of investing in mutual funds regularly over time and offer more flexibility and lower charges compared to ULIPs. If you prioritise insurance coverage along with investment growth, ULIPs may be suitable. However, if you prefer lower costs and greater flexibility in fund selection, SIPs may be a better option.
How much is the return on ULIP in 10 years?

The return on ULIP in 10 years varies depending on factors such as the fund performance, market conditions, premium amount, charges deducted by the insurance company, and the chosen funds. ULIP returns are market-linked and subject to fluctuations, so it is challenging to predict the exact return. It is essential to consider your risk tolerance and investment objectives before investing in ULIPs for the long term. Consulting a financial advisor can help you make informed investment decisions based on your individual circumstances.

How much are the ULIP returns after five years?

ULIP returns after five years depend on the investment's performance and the charges incurred. Use a ULIP returns calculator to estimate potential returns based on the premium amount, policy term, and expected rate of return.

How do I check the ULIP fund value?

To check your ULIP fund value, log in to your insurance provider's website or app, navigate to the 'Policy Details' section, and view the current fund value. You can also request this information from your insurer.

Is ULIP a good investment plan?

ULIPs offer a combination of insurance and investment. They can be a good option if you seek long-term wealth creation with insurance coverage. However, assess factors like charges, fund performance, and policy terms before investing.

What are the additional charges associated with a ULIP plan?

ULIP plans include charges such as fund management fees, premium allocation charges, mortality costs, and policy administration fees. These deductions impact overall returns, making it essential to use a ULIP return calculator to estimate actual gains after expenses.

Is the amount received after surrendering a ULIP post five years taxable?

No, if a ULIP is surrendered after completing the five-year lock-in period, the payout is exempt from tax under Section 10(10D) of the Income Tax Act, provided the premium meets the specified criteria.

How is the surrender value of a ULIP policy determined?

The surrender value is calculated by subtracting applicable surrender charges from the total fund value. If surrendered after five years, the entire fund value is paid without deductions.

How does a ULIP calculator assist in offline purchases?

A ULIP calculator helps in offline purchases by allowing buyers to estimate premiums, returns, and fund value beforehand. It provides financial clarity, enabling informed decisions even when purchasing a ULIP plan through an agent or branch.

Which is better: ULIP or mutual funds?

ULIPs offer both insurance and investment benefits, while mutual funds focus solely on wealth creation. The choice depends on financial goals—ULIPs suit long-term security, whereas mutual funds are better for flexible, high-growth investments.

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*T&C Apply - Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Future Generali Life Insurance Company Limited, Life Insurance Corporation of India (LIC), Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Company Limited, HDFC ERGO General Insurance Company, TATA AIG General Insurance Company Limited, ICICI Lombard General Insurance Company Limited, New India Assurance Limited, Chola MS General Insurance Company Limited, Zurich Kotak General Insurance Company Limited , Star Health & Allied Insurance Company Limited, Care Health Insurance Company Limited, Niva Bupa Health Insurance Company Limited, Aditya Birla Health Insurance Company Limited and Manipal Cigna Health Insurance Company Limited under the IRDAI composite CA registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer's website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale. Tax benefits applicable if any, will be as per the prevailing tax laws. Tax laws are subject to change. BFL does NOT provide Tax/Investment advisory services. Please consult your advisors before proceeding to purchase an insurance product. Visitors are hereby informed that their information submitted on the website may also be shared with insurers. BFL is also a distributor of other third-party products from Assistance Services providers such as CPP Assistance Services Pvt. Ltd., Bajaj Finserv Health Ltd. etc. All product information such as premium, benefits, exclusions, sum insured, value added services, etc. are authentic and solely based on the information received from the respective insurance company or the respective Assistance service provider company.

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