Primarily, insurance calculators come handy when you want to decide which insurance to buy. Generally, endowment plan calculator helps you get a fair estimate of:
- Surrender values
- Paid-up and projected maturity values
You receive these values on the basis of the total premium paid. Hence, submit correct values of sum assured, premium, premium paying term, policy term, last premium paid date, and your personal details. The data entered will then be used to calculate the nitty-gritty of the endowment plan which you have opted for.
Some of the points which we will be elaborating on in this article are:
- Things which the endowment plan calculator show
- Using an endowment plan calculator
What all does the endowment plan calculator show?
Along with the payable premiums, the endowment plan also shows:
- Accumulated bonuses:
These are the fund which is accumulated each year to the endowment policy.
- Guaranteed surrender value:
This helps to know the specified funds which you will receive if you decide to voluntarily terminate your policy before the maturity.
- Current surrender value:
You have to pay a certain charge if you terminate the policy very early before the lock-in period concludes. With the help of the endowment plan calculator, you can get to know how much surrender value you will receive once these charges are deducted.
- Paid-up value:
Endowment plan calculator helps you to calculate the sum assured multiplied with the ratio of the number of premiums paid to the number of premiums payable. The value thus received is nothing but your paid-up value which your endowment plan offers.
- Projected maturity value:
If you want to know the amount which you will be received at the end of maturity of your policy then, the calculator can help you with that too. However, the projected maturity amount is keeping all the premiums payment stable. But, should you skip a payment, you can always re-calculate your maturity amount as per the chances.
How to use an endowment plan calculator?
To do all the calculations as mentioned above, follow the steps as mentioned below.
Step 1: Visit the endowment plan calculator online
Step 2: Enter your accurate details, such as:
- Date of Commencement
- Last Premium Paid Date
Step 3: Click on ‘Submit’
What follows next is all the details of your policy and the possible financial corpus which you can create.
You can also check the current status and performance of your plans. Along with this, with endowment plans, it is important that you closely monitor other aspects and pay-outs of your plan. So, keeping an eye on Current Surrender Value and Paid-up Value is imperative.