SBI Unit-Linked Insurance Plans (ULIPs) provide both protection and investment opportunity to its policyholders. Among other services, SBI also offers online calculators to assist its customers with investment decisions. ULIP calculators are useful instruments to determine the type of plan, investments, and duration.
The SBI ULIP Calculator is a digital device that can give precise calculations in a matter of minutes. There are, however, many more reasons why you should use the calculator. Some of them are listed below:
It is convenient: Using the calculator is extremely convenient because of its user-friendly interface. You can simply log in to the company's official website and get a quote for the plan you are interested in purchasing by inputting details asked by the calculator.
Easy access: You do not need to leave the comfort of your home if you want to acquire information about the investment in a ULIP plan from the calculator. It is readily available on the website and can be accessed by anyone at any time of the day. Customers do not need to conform to office timings to get quotes.
It is accurate: The SBI ULIP Calculator uses a formula to calculate the results, and because it is computerized, it gives accurate results. Thus, you don't have to depend on manual calculations that are prone to errors.
Financial control: The calculator tells you the amount of investment you will need to meet your expectations. Therefore, once you know the amount you are expected to invest in purchasing a suitable policy, you will automatically rethink your expenses and thus gain more control over your finances.
Decision making: SBI ULIP Calculator helps you decide if you are ready to invest in the plan by giving you a fair idea of the expenses. Moreover, it can help you reform your decisions as you can use it as many times as you want until you get the results as per your expectations.
How Should You Use SBI ULIP Calculator?
The SBI ULIP Calculator is a self-explanatory tool. It can be used by anyone who has access to the internet. Listed below are the steps that you have to use to make efficient use of the SBI ULIP Calculator:
Step 1: Visit the official website of the company. There you will be able to see the SBI ULIP Calculator.
Step 2: Select if you are purchasing the policy for yourself or someone else.
Step 3: Select the frequency you want to pay the policy's premium between monthly and annually.
Step 4: Select the kind of plan that you are interested in between balanced and growth.
Step 5: Use the scroll bar to decide the term of the policy, which can be anywhere between 10-30 years.
Step 6: Next, enter your name, date of birth, gender, resident status, mobile number, email id, etc. In this step, you have to enter the details of the person for whom the policy is being taken.
Step 7: In this step, you will have to enter your details. This step will be required by those customers who are taking the policy for somebody else.
Step 8: The last step is selecting "Get Quote", and your premium amount will appear on the screen.
SBI ULIP Calculator Example
Here is a small example that will help you understand how to use the SBI ULIP Calculator:
Choose a "Monthly" premium frequency
Select the "Growth" option
Choose the policy term to be 20 years
Enter your age, gender, name, resident status, city, state, contact number and email ID
Click on "Get Quote" Result of the calculation:
Instalment Premium: INR 6,000
Annual Premium: INR 72,000
Sum Assured: INR 7,20,000
Maturity benefit if the assumed interest rate is 4%: INR 18,68,852
Maturity benefit if the assumed interest rate is 8%: INR 28,81,119
Advantages of SBI ULIP Calculator
Let us have a look at the advantages of using the SBI ULIP Calculator:
Financial discipline: Using the calculator, you can learn financial discipline at an earlier stage in life as it will tell you how much money you will need to fulfil your life goals. Hence, it will teach you to manage your finances better.
Information without commitment: You are not expected to buy the plan after using the calculator compulsorily. You can use it simply for investment-related details based on which you may or may not decide to buy the policy.
Comparison option: Using the calculator allows you to compare the profits you might make by investing in plans of different insurance companies. Not only that, but you can also compare the returns between the two plan options to find a suitable plan for you that would meet your expectations as much as possible.
Keeps the customerupdated: Since the calculator is continuously updated, you get the returns based on the current rates and charges. You don't have to worry about visiting an office to know how the market affects the returns.
The following information is required when using the SBI ULIP Plan Calculator:
Periodic payment method
Type of plan
Personal information like name, age, and gender
Benefits of buying SBI ULIP Plan
Here are the benefits of buying an SBI ULIP Plan:
Assists in generating a large corpus: By making disciplined and timely investments, you will be able to generate a large sum of money that can be used in the later stage of life.
Security along with investment: Since it is a ULIP plan, a certain percentage of the investment will be invested in safer market instruments. The remaining portion of the investment will be used as the premium for the insurance policy.
Financial independence: By investing in the plan, you can rest assured that you will get guaranteed returns as the maturity value in the later stage of life. This fact ensures your financial freedom, even when you retire from work.
Tax benefits: You can avail of tax benefits under Section 10(10D) and Section 80C of the Income Tax Act based on the premiums paid and returns earned. The premiums paid will help you save tax while the returns earned are exempted from tax.
The SBI ULIP Plan Calculator can come in handy to investors who wish to invest in the plan but are unsure about how much they will have to invest to get the expected returns. With the help of this calculator, customers can determine the best investment for them in only a few clicks.
Ans. As a portion of your investments in the SBI ULIP Plan will be invested in the market, so there are some risks attached to the capital invested. It is because it will be affected by the fluctuations of the market. You can control this by limiting your investment in the market by selecting the balanced plan option. However, the returns provided by ULIP Plans are greater due to the risk attached.
Ans. Suicide is an exclusion under this plan. Therefore, if a customer commits suicide within 12 months of purchasing the policy, he/she will automatically be excluded and not be liable for any maturity amount payments.
Ans. In the event of the policyholder's demise, the beneficiaries are liable to claim all the plan's proceeds along with the initial amount invested in it. Thus it protects the loved ones of the policyholder as well.
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