How to Calculate Returns from ULIP Plan?

What Are Returns in ULIP?

How Does ULIP Returns Work?

How Are Returns in ULIP Calculated?

What to Expect from ULIP Returns?

What Are the Limitations of ULIP Returns?

FAQs About ULIP Returns

How can you maximise your returns from ULIP?

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To maximise your returns from ULIP, start your investment journey as early as possible. It would be prudent to invest a high amount and avoid partial withdrawal. Furthermore, invest in equity funds and go for fund switching to balance risks.

Do you have to pay a tax on your returns from ULIP?

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No, the returns from ULIP are usually tax-free under Section 10D of the Income Tax Act. However, to stand eligible for this exemption, you should ensure that the total premium paid for the policy is less than ₹5 lakhs.

Does ULIP provide guaranteed returns?

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No, you cannot expect guaranteed returns, as numerous factors can influence their performance. However, you can use several formulas and online calculators to estimate the returns from your ULIP investment.

What factors determine the returns from ULIP?

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The two most crucial factors that determine your returns from ULIP investment include the organisation of your portfolio and investment in the best asset classes. Accordingly, you can optimise them to increase your returns.

What are the approximate returns from ULIP after ten years?

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The returns from ULIP after ten years of investment can depend on factors like investment amount, interest rate, market trend, asset classes, etc. So, by making wise choices, you can be sure of earning high returns from this policy.

Disclaimer

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  • This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
  • All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
  • Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.

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