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? up-arrow

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? up-arrow

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? up-arrow

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? up-arrow

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? up-arrow

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.