Unit linked insurance policies (Ulips) come with a 5-year lock-in, after which you can surrender your policy and make full withdrawal without any exit load or surrender charges. But what happens if you don’t want to close your policy, but need to withdraw some amount? Ulips give you the flexibility to make partial withdrawals. However, there are certain conditions around this.
Limits on withdrawal
Ulips comes with a lock-in period of 5 years. This means, you can’t make any withdrawals at this time. In fact even if you choose to surrender or discontinue your policy, the money is made available to you only after the 5-year lock-in period.
Partial withdrawals can only be made after 5 years; however, keep in mind that you can’t make a partial withdrawal from a unit linked pension plan. Also, in case a minor’s life is insured in the policy, partial withdrawals can be made only when the life insured attains 18 years of age.
