We all have seen the blue-green beaches of Mauritius, the gorgeous streets of London, or the Swiss mountains on the feeds of some famous bloggers and craved to witness the beauty in person. If you also have a dream vacation in mind, then it is time to invest in the right plan and plan a budget smartly. Worry not; we have you covered.
Let’s learn about ULIPs and ULIP calculators, which can help create a strong investment portfolio, build life coverage, and ensure smart budgeting.
What is a ULIP calculator?
ULIP, or unit-linked insurance plan, is a life insurance plan that offers not only life coverage but also an amazing investment opportunity. Under a ULIP, a part of the money you invest goes into life coverage, and a part of it is invested in a security of your choice, such as equity bonds, debt bonds, government securities, etc. Usually, investments in ULIP come with a lock-in period of 5 years, thus making it a reliable plan to plan your vacation in five years.
The ULIP calculator is an online tool designed to provide you with a complete picture of your investment under the plan. This tool is a reliable option for financial planning because it provides a financial trajectory based on your personal requirements, such as investment goals, appetite for risk, return anticipation, etc.
You just have to feed in the details of the amount you wish to invest, expected returns, and duration, and the calculators will show you the potential of your investment. ULIP calculators help you analyse different ULIP plans, find the right investment security when you have a clear image of your finances, and move investments to make the most of market trends.
Learning the basics of ULIP calculators
ULIP calculator is a super easy online tool that is designed to provide a user-friendly experience. Here’s how you can use the ULIP calculator to plan your dream vacation in 5 years:
- Fill in the amount that you are planning to invest in, either monthly, quarterly or annually.
- Next, you have to select the tenure. Make sure to pick the tenure of your investment plan smartly.
- You must select the funds you want to invest in based on your investment goals and risk appetite.
Tip: Take a quick look at the types of investment funds you can consider- Equity funds: Equity funds are a type of investment fund comprising a portfolio of stocks. These often carry a potential for higher returns but also come with a higher risk.
- Balanced funds: Investing in balanced funds means that your premiums are invested in both equity and debt funds. This type of fund is generally considered a reliable option for minimising risk by creating a diverse investment portfolio.
- Debt funds: You can invest in debt funds to profit from the interest paid by the company, corporation, or government whose debt instruments you have invested in. Here, the chances of risks are lower, and returns are steady but low.
- Provide an estimated figure of the returns you are expecting from the investment.
- Once you have filled in the details, the ULIP calculator
ULIP calculator: Planning your vacation with effective planning
Planning a vacation in the next 5 years requires you to plan your budget effectively and make investment decisions wisely. Here’s how you can leverage ULIP calculators to your benefit:
- An easy way to find out your expected returns
ULIP calculators are popular for their ease and convenience. You do not need to get into tedious technical calculations, a ULIP calculator does it all for you. Just fill in the details, and you will get your answer. Additionally, the tool is free of cost, so you can amend the details and plan the budget as many times as you want.
- Financial planning
Remember that to fulfil your vacation dreams, you need efficient financial planning. The ULIP calculator creates a picture of your finances to help you plan your monthly budgets better and save enough for the vacation.
- Setting up attainable goals
Setting attainable goals is a prerequisite for effective financial planning. The ULIP calculator ensures that you prioritise investments in the long run rather than spending recklessly.
- Compare investment to make changes
As a beginner, investment decisions can appear daunting, but with the ULIP calculator, your investment becomes straightforward. You can get an idea of what funds can fetch you what kind of returns. What works as an advantage is that under a ULIP plan you can switch between your funds without having to worry about unforeseen charges.
Over to you
Investment plans like ULIPs are beneficial for you in multiple ways. It provides life coverage, investment opportunities and efficient financial planning. Not to miss that, you can enjoy tax benefits up to ₹1.5 lakhs under Section 80 C of the Income Tax Act. You can utilise the ULIP calculator for clarity and customisation to create a financial plan that aligns with your income and vacation plans.