Partial Withdrawal Feature in ULIPs

What is Partial Withdrawal Feature in ULIPs?

Partial withdrawal is a feature offered in Unit Linked Insurance Plans (ULIPs) that allows policyholders to withdraw a portion of their invested funds without surrendering the entire policy. This feature can be beneficial in situations where you need funds for specific purposes like medical emergencies, education expenses, or home renovations.

Top ULIP Funds^†

Returns 3 Years 5 Years 10 Years

Equity (Large, Mid Cap) Balanced Debt

Fund Name

AUM

NAV

Returns (in %)

3 Year

5 Year

10 Year

Whole Life Mid Cap Equity Fund

Tata AIA

AUM:13,041 Cr

13,041 Cr

NAV

155.97

-0.88%

Returns

24.07%

Returns

29.02%

Highest Returns

Returns

20.47%

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Top 200 Fund

Tata AIA

AUM:2,044 Cr

2,044 Cr

NAV

178

-1.55%

Returns

24.74%

Returns

31.65%

Highest Returns

Returns

20.12%

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High Growth Fund

Max Life

AUM:7,665 Cr

7,665 Cr

NAV

119.16

-0.77%

Returns

29.03%

Returns

29.68%

Highest Returns

Returns

20.1%

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Multiplier

Birla Sun Life

AUM:4,680 Cr

4,680 Cr

NAV

100.49

-0.58%

Returns

24.01%

Returns

25.73%

Highest Returns

Returns

18.69%

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Virtue II

PNB Metlife

AUM:3,473 Cr

3,473 Cr

NAV

79.02

-0.57%

Returns

22.28%

Returns

27.93%

Highest Returns

Returns

18.14%

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Fund Name

AUM

NAV

Returns (in %)

3 Year

5 Year

10 Year

Whole Life Stable Growth Fund

Max Life

AUM:256 Cr

256 Cr

NAV

60.88

-0.26%

Returns

13.13%

Returns

15.92%

Highest Returns

Returns

12.62%

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Balanced Fund

Max Life

AUM:367 Cr

367 Cr

NAV

48.16

-0.13%

Returns

13.48%

Returns

15.05%

Highest Returns

Returns

11.99%

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Growth Plus Fund

Max Life

AUM:591 Cr

591 Cr

NAV

37.08

-0.13%

Returns

13.79%

Returns

15.67%

Highest Returns

Returns

11.3%

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Save N Grow Money Fund

Max Life

AUM:70 Cr

70 Cr

NAV

58.68

-0.12%

Returns

10.4%

Returns

11.99%

Highest Returns

Returns

10.83%

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Creator

Max Life

AUM:541 Cr

541 Cr

NAV

100.45

-0.23%

Returns

10.51%

Returns

12.56%

Highest Returns

Returns

10.81%

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Fund Name

AUM

NAV

Returns (in %)

3 Year

5 Year

10 Year

Pure Fund

Max Life

AUM:575 Cr

575 Cr

NAV

54.02

-0.37%

Returns

16.86%

Returns

21.81%

Highest Returns

Returns

15.22%

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Builder

Max Life

AUM:243 Cr

243 Cr

NAV

89.11

-0.06%

Returns

7.43%

Returns

8.47%

Returns

9.01%

Highest Returns

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Whole Life Income Fund

Max Life

AUM:773 Cr

773 Cr

NAV

37.75

0.00%

Returns

5.89%

Returns

6.75%

Returns

8.27%

Highest Returns

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Conservative Fund

Max Life

AUM:235 Cr

235 Cr

NAV

54.81

-0.03%

Returns

7.17%

Returns

7.87%

Returns

8.02%

Highest Returns

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Protector

Max Life

AUM:304 Cr

304 Cr

NAV

63.69

-0.02%

Returns

6.28%

Returns

7.03%

Returns

8.01%

Highest Returns

Get Details

Disclaimer :
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

Making Partial Withdrawals Before the Completion of the Lock-in Period

During the ULIP lock-in period, it is not possible to make partial withdrawals from a ULIP. This means that you cannot withdraw a portion of your invested amount before the completion of five years. Even if you wish to surrender or discontinue the policy before the lock-in period ends, you will have to wait until the completion of five years to receive your funds.

People also read: What is ULIP

Making Partial Withdrawals after the Lock-in Period

• Eligibility: You can make partial withdrawals after the lock-in period ends.

• Restrictions: You cannot withdraw the entire accumulated fund before maturity, surrender, or discontinuation.

• Minor Policyholders: Children can only make partial withdrawals after turning 18.

• Consideration: Carefully consider the implications of partial withdrawals before making a decision.

What are the Limits on Partial Withdrawal?

While there's no strict limit on partial withdrawals from your ULIP, excessive withdrawals can lead to policy termination. The specific limits vary by insurer. Generally, you can withdraw up to 10% of the total premium paid after the lock-in period. Other restrictions like minimum withdrawal amounts or annual limits may also apply. Always review your policy document for detailed information.

People also read: ULIP Calculator

What are the Effects of Partial Withdrawal on Life Cover?

Partial withdrawals from a Unit Linked Insurance Plan (ULIP) can reduce the sum assured. This means the amount your beneficiaries receive in case of your unfortunate demise might be lower. However, if you withdraw funds more than two years before your death, the sum assured typically remains unaffected. Always consult your policy documents to understand the specific rules and consequences of partial withdrawals for your ULIP.

Conclusion

The partial withdrawal feature in ULIPs offers valuable flexibility for policyholders, providing a means to access funds without surrendering the entire policy. While it's important to be aware of potential implications on sum assured and future benefits, partial withdrawals can be a helpful tool for managing financial needs.