RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

What is the Estimated Return Percentage on ULIP? Do Investors Get Compound Interest?

down-arrow
August 11, 2023

Table of Contents

 

In this policy, the investment risks in the investment portfolio is borne by the policyholder

The market offers options aplenty to fit your short-term and long-term investment needs. But before you leap picking a plan, it’s extremely important to identify your goals and figure out the exact expectations from your investment. If you are looking for a long-term goal, a long-term investment with the best returns is surely your answer.

Here, Unit Linked Insurance Plan (ULIP) plan can be a lucrative tool as it relies on the power of compounding to bring you the best returns. To be on the wiser side, you can always trust the ULIP calculator to estimate the returns for you before you take the plunge.

The gains from ULIP 

The worth of any investment is based on its estimated returns which make it stand out among the various options available. ULIP plan has garnered quite a lot of popularity because it doubles up as life insurance and an investment opportunity, ensuring a two-sided financial gain thereby.

Here a part of the premium goes to form the life cover and the remaining is invested in debt funds, equities or a mix of the two. Thus, while it supports the family of the policyholder in case of his untimely demise with a lump sum death benefit, the maturity benefit consists of a pay back of total premiums paid along with the returns from the investment in market linked funds. This dual benefit thus makes ULIP a worthy choice among investors.

The estimated return percentage

With a five-year lock-in period, the ULIP plan performs best when the investor continues with it for at least 10 years or more. Experts suggest, when a policy holder keeps his money invested in the ULIP policy without making any withdrawals, it can generate even up to 10-12% returns depending on market condition and fund performance.

The power of compounding

The higher return from a ULIP plan is the fruit of the power of compounding. The investment in ULIP offers compound interest i.e., the interest generated every year is added to the principal and the entire amount gets reinvested for the following year, increasing the net worth of your fund. Thus, the longer you invest in the plan or keep your money invested, the higher the return.

ULIP calculator

Calculating how much return you can expect from your ULIP plan is right there at your fingertips. Almost all the plan provider companies provide an online tool called the ULIP calculator that is available on their respective websites.

The ULIP calculator estimates the returns from a particular plan given the premium amount and the tenure of investment.  Besides, if you’ve already zeroed into an amount, you are looking for after you invest for a certain period, the ULIP calculator can also estimate the amount of investment needed to achieve it.

Moreover, if you are confused about making the right pick from all the available ULIP plans, the insurers have solutions for that too. Some ULIP Calculator offer an option to compare the returns from different ULIP plans and help in choosing the one best suited for your needs.

Everything said, it’s now time for you to take your pick of the investment plan. Make sure you choose the right one!

Related Articles:

ARN - ED/07/23/3246

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile
Reviewed By Reviewed By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

The ₹1.2 Crore Question: Is Your Financial Plan as Strong as Your Dream Home?

The ₹1.2 Crore Question: Is Your Financial Plan as Strong as Your Dream Home?

Financial Plan as Strong as Your Dream Home: Ensure your family's security with a solid plan, including life insurance, savings, and investments for future growth.

Feeling Stuck in Life & Money? The Power of Doing Less Could Mean Doing More

Why Your Savings Strategy Needs an Upgrade (Hint: It’s Not Just About Returns)

Savings Bank Account vs Insurance Plans: Why You Need Both in Your Portfolio

Learn importance of savings bank accounts and insurance plans in a financial portfolio, as they help protect assets and grow wealth through security and planning.

Savings Bank Account vs Insurance Plans: Why You Need Both in Your Portfolio
Building a Solid Financial Foundation: Budgeting in Your 20s Previous
Eight reasons why ULIP should be there in your investment portfolio Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Disclaimer

The Unit Linked Insurance products do not offer any liquidity during the first five years of the contract. The policyholders will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of fifth year.

Popular Search

Popular Searches