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

High Growth Fund

Max Life

AUM:8,243 Cr

8,243 Cr

NAV

120.7

-0.87%

Returns

27.73%

Returns

31.47%

Highest Returns

Returns

19.3%

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Virtue II

PNB Metlife

AUM:3,314 Cr

3,314 Cr

NAV

75.97

-0.30%

Returns

18.68%

Returns

25.83%

Highest Returns

Returns

16.48%

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Accelerator Mid-Cap Fund II

Bajaj Allianz

AUM:6,109 Cr

6,109 Cr

NAV

86.97

-0.35%

Returns

20.48%

Returns

22.28%

Highest Returns

Returns

15.61%

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Opportunities Fund

HDFC Standard

AUM:38,633 Cr

38,633 Cr

NAV

78.45

-0.37%

Returns

18.47%

Returns

22.64%

Highest Returns

Returns

15.48%

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Pure Equity

Birla Sun Life

AUM:2,845 Cr

2,845 Cr

NAV

77.4

-0.20%

Returns

17.56%

Returns

21.84%

Highest Returns

Returns

15.07%

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Fund Name

AUM

NAV

Returns (in %)

3 Year

5 Year

10 Year

Whole Life Aggressive Growth Fund

Canara HSBC Oriental Bank

AUM:843 Cr

843 Cr

NAV

94.39

-0.70%

Returns

18.46%

Returns

19.93%

Highest Returns

Returns

14.91%

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Whole Life Stable Growth Fund

Canara HSBC Oriental Bank

AUM:268 Cr

268 Cr

NAV

62.47

-0.30%

Returns

13.78%

Returns

15.46%

Highest Returns

Returns

12.08%

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Balanced Fund

Canara HSBC Oriental Bank

AUM:365 Cr

365 Cr

NAV

48.01

-0.28%

Returns

12.75%

Returns

13.61%

Highest Returns

Returns

11.02%

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Balanced Pension

Canara HSBC Oriental Bank

AUM:559 Cr

559 Cr

NAV

71.06

-0.30%

Returns

10.22%

Returns

12.32%

Highest Returns

Returns

10.7%

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Asset Allocation Fund II

Canara HSBC Oriental Bank

AUM:323 Cr

323 Cr

NAV

31.58

-0.24%

Returns

11.26%

Returns

12.8%

Highest Returns

Returns

10.63%

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Fund Name

AUM

NAV

Returns (in %)

3 Year

5 Year

10 Year

Builder

Canara HSBC Oriental Bank

AUM:237 Cr

237 Cr

NAV

90.36

-0.35%

Returns

7.45%

Returns

8.21%

Returns

8.45%

Highest Returns

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Whole Life Income Fund

Canara HSBC Oriental Bank

AUM:811 Cr

811 Cr

NAV

38.64

-0.01%

Returns

6.16%

Returns

6.99%

Returns

7.84%

Highest Returns

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Debt Fund

Canara HSBC Oriental Bank

AUM:478 Cr

478 Cr

NAV

36.64

-0.02%

Returns

5.89%

Returns

7.02%

Returns

7.63%

Highest Returns

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Conservative Fund

Canara HSBC Oriental Bank

AUM:231 Cr

231 Cr

NAV

56.2

-0.10%

Returns

7.46%

Returns

8.1%

Highest Returns

Returns

7.56%

Get Details

Protector

Canara HSBC Oriental Bank

AUM:299 Cr

299 Cr

NAV

64.86

-0.16%

Returns

6.49%

Returns

7.03%

Returns

7.54%

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. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). 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.

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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.