A delay cost calculator is simply an online tool that works through a formula to identify your cost of delay in investment. Therefore, all the fields on the calculator will have to be filled in as per your understanding. Therefore, this tool can only show you results based on the information you provide but not suggest any changes to the details or identify your risk profile.

It also cannot ensure that your returns will be guaranteed, as the choice of investment is a personal preference and needs to be planned by you, the investor.

For instance, if Nidhi wants to compensate for a delay of 5 years in her investment, it means she has lost 5 years of her investment tenure. She can start by mentioning the delayed tenure of 5 years, the monthly investment amount, which can be ₹10,000 and the investment tenure of 20 years, along with the rate of expected returns of 10%. The results on the calculator will show her the cost of delay in investment, how much she could have invested in those 5 years and how she can cover this delay in the next 20 years of her investment.

A lot of investors also use the cost of delay calculator to start new investments so that they can opt for a different investment instrument and not because they are starting late. It is simple to use a cost of delay calculator if you follow the steps given below.

This is because they may not have had the risk capacity to invest in those instruments 5-8 years ago, and now that they have been able to build their risk tolerance, they can go for some newer options. 

To use a cost of delay calculator online, visit the official website of Tata AIA Life Insurance and:
 

1. Hover on the Calculators tab on our homepage and select the cost of delay calculator.

2. Mention all the details, such as the investment amount or SIP, the expected return, the investment tenure, the delay in years or months, etc.

3. After submitting this information, click on submit to understand the exact amount that you will need to add to your monthly investment to get the expected returns.

4. Once you get the result, it can also help you plan what financial instruments you can now opt for to reach your desired financial corpus.

It is important to measure the cost of delay in investment so that you can understand how much you need to invest or save to be able to earn the desired returns on your investment if you start investing late in life.

This helps you make an informed decision regarding the choice of investment and investment tenure. The cost of delay is to compensate for the lost time and the amount you would have been able to invest in case of an early investment.

Here are the three main benefits of investing early in life:
 

• First, you can invest small amounts of money for a greater number of years.

• With a regular habit of investing, you can control your expenses better.

• Third, your investment can grow through the power of compounding or compound interest.

The primary advantage of long-term investment is that you can invest for a longer period of time and start with a small investment which can be increased later on. Long-term investments are also relatively more immune to market fluctuations as compared to short-term investments.

It is always advisable to start your investments early. By doing so, you can start with small but regular investments in case you do not have enough funds initially. But with time, you can increase the investment amount and also grow your risk-taking capacity. On the other hand, if you start your investments late, the investment tenure will be shorter, and with fewer investment options, there will be less scope for increasing your risk capacity.

If you start an investment in a savings plan in your early years, then you can invest over a longer investment tenure and earn better returns. Even in the case of a simple term insurance policy, buying the term plan early can help protect your family for a longer policy term and reduce the cost of delay since younger lives are insured at lower premiums, owing to lower health risks.

A life insurance policy such as a Unit-Linked Insurance Plan offers the dual benefit of investment and life insurance under one policy. Under a ULIP, you can earn market-linked returns by investing some amount through your policy premiums. Then, on policy maturity, you get the market-linked returns as the maturity benefit, subject to your survival till the end of the policy term.

The primary advantage of investing in life insurance plans is that you can secure your family’s financial future. Moreover, in the event of your demise, the policy’s sum assured can help your dependents sustain their livelihood and meet their financial goals.

If you have a life insurance savings plan, you can also regularly save or invest a fixed amount of money through your premium payments during the policy period. This way, you can build a financial corpus that will help you meet your future goals.  A life insurance retirement plan also helps you plan your finances for your retirement years, with the benefit of regular income and life cover.