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A <\/span>ULIP plan<\/span>, or a Unit Linked Insurance Plan, combines an investment component and an insurance cover. If you are ever in need of a large sum of money in the future, you can start thinking about a <\/span>ULIP investment<\/span><\/a>.\u00a0<\/span><\/p>\n

With this type of investment, you will not have to fish for loans, cash in your fixed deposit; rather, you can withdraw the amount from the accumulated fund value of your ULIP policy. But before choosing a <\/span>ULIP policy<\/span>, you must check the premium amounts to be paid by you through a <\/span>ULIP calculator<\/span>. This way you can also be sure of your <\/span>ULIP returns<\/span> in the future.<\/span><\/p>\n

The partial withdrawal feature is one of the biggest perks of a <\/span>ULIP plan<\/span>. However, the flexibility that it offers usually comes with some terms and conditions. In this article, we will talk about everything that you need to know about partial withdrawals in ULIP plans. So, let\u2019s get started.<\/span><\/p>\n

What Are the Limits of Partial Withdrawals on a ULIP Plan?<\/b><\/p>\n

There is no limit on partial withdrawals as such. However, the key point here is that the policyholder should leave enough funds to cover the charges of the <\/span>ULIP plan<\/span>. So, withdrawing too much money at one time isn\u2019t advisable as it may lead to the termination of the policy.<\/span><\/p>\n

Again, the withdrawal limits vary from one insurance company to the other. So, for example, the withdrawal limits offered by ULIPs under the <\/span>Tata AIA life insurance plans<\/span><\/a> would be different from the other plans that are available online. However, the standard ULIP withdrawal is usually up to 10% of the total premium amount paid.<\/span><\/p>\n

So, the policyholder must keep paying the premiums on time to enjoy the partial withdrawal facility. Missing out on paying one premium can lead to your chances of getting your withdrawal request rejected. Also, remember that this partial withdrawal feature is only available for active ULIP policies.<\/span><\/p>\n

What is the Lock-in Period for ULIP Plans?<\/b><\/p>\n

Every <\/span>ULIP plan<\/span> comes with a five years lock-in period. This period plays a vital role for the policyholders. This is because, in the beginning, your fund value is low. However, only after you have paid some premiums, your fund value will start to grow. Therefore, you must consider this aspect while going for a partial withdrawal.<\/span><\/p>\n

If you go for partial withdrawal before the end of the five-year lock-in period, you can\u2019t do that. However, if you think about discontinuing the policy before the lock-in period, you can expect to receive the whole amount only when the policy lock-in period ends.<\/span><\/p>\n

Again, the partial withdrawal feature is only available once the lock-in period is over. But there are a few things to consider in such a case. If you make any top-up payments towards your <\/span>ULIP plan<\/span>, the insurer will first settle your withdrawals from your paid top-up amounts. And in case of no top-ups being paid, the insurer will pay you the amount from the fund value. Also, if your top-up premium payments aren\u2019t completed in the five years lock-in period, your partial withdrawal payments will be made by the insurer from the base fund.<\/span><\/p>\n

Life Coverage & Partial Withdrawals in ULIP Policies<\/b><\/p>\n

If you worry about how your partial withdrawals can affect your insurance life coverage, you must know that it will depend on the amount you withdraw during the lock-in period. This is because every partial withdrawal will lead to a decrease in the policy sum assured. But if you make the withdrawal at least two years before your accidental death, the sum assured will be unaffected.<\/span><\/p>\n

Conclusion<\/b><\/p>\n

The partial withdrawal feature in a <\/span>ULIP plan<\/span> could be a blessing in disguise in time of need. But keeping in mind, the above-listed aspects will make you decide on the withdrawal amount better. Also, you must remember that any withdrawal will affect the amount of the corpus. Hence, go for a partial withdrawal when you must do so.<\/span><\/p>\n

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  A ULIP plan, or a Unit Linked Insurance Plan, combines an investment component and an insurance cover. If you are ever in need of a large sum of money in the future, you can start thinking about a ULIP investment.\u00a0 With this type of investment, you will not have to fish for loans, cash […]<\/p>\n","protected":false},"author":1,"featured_media":246,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":{"0":"post-288","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n