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:8,482 Cr

8,482 Cr

NAV

119.99

1.59%

Returns

23.95%

Returns

31.9%

Highest Returns

Returns

20.47%

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Whole Life Mid Cap Equity Fund

Tata AIA

AUM:13,435 Cr

13,435 Cr

NAV

158.69

2.49%

Returns

21.08%

Returns

27.7%

Highest Returns

Returns

20.43%

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Virtue II

PNB Metlife

AUM:3,532 Cr

3,532 Cr

NAV

77.53

1.12%

Returns

17.59%

Returns

26.28%

Highest Returns

Returns

17.97%

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Accelerator Mid-Cap Fund II

Bajaj Allianz

AUM:6,452 Cr

6,452 Cr

NAV

86.49

1.27%

Returns

17.79%

Returns

22.67%

Highest Returns

Returns

16.96%

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Opportunities Fund

HDFC Standard

AUM:40,966 Cr

40,966 Cr

NAV

78.44

1.16%

Returns

15.75%

Returns

23.42%

Highest Returns

Returns

16.86%

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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:869 Cr

869 Cr

NAV

93.59

0.82%

Returns

16.11%

Returns

20.41%

Highest Returns

Returns

15.83%

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Whole Life Stable Growth Fund

Canara HSBC Oriental Bank

AUM:266 Cr

266 Cr

NAV

61.92

0.32%

Returns

12.53%

Returns

15.66%

Highest Returns

Returns

12.78%

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Balanced Fund

Canara HSBC Oriental Bank

AUM:380 Cr

380 Cr

NAV

48.06

0.34%

Returns

11.49%

Returns

14.21%

Highest Returns

Returns

11.91%

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Asset Allocation Fund II

Canara HSBC Oriental Bank

AUM:341 Cr

341 Cr

NAV

31.32

0.18%

Returns

9.45%

Returns

12.98%

Highest Returns

Returns

11.36%

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Save N Grow Money Fund

Canara HSBC Oriental Bank

AUM:68 Cr

68 Cr

NAV

58.7

0.37%

Returns

8.69%

Returns

11.34%

Highest Returns

Returns

10.82%

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Fund Name

AUM

NAV

Returns (in %)

3 Year

5 Year

10 Year

Builder

Canara HSBC Oriental Bank

AUM:243 Cr

243 Cr

NAV

89.55

0.06%

Returns

6.87%

Returns

8.26%

Returns

8.91%

Highest Returns

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Whole Life Income Fund

Canara HSBC Oriental Bank

AUM:802 Cr

802 Cr

NAV

38.31

0.03%

Returns

6.22%

Returns

7.01%

Returns

8.18%

Highest Returns

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Debt Fund

Canara HSBC Oriental Bank

AUM:482 Cr

482 Cr

NAV

36.29

0.04%

Returns

5.92%

Returns

6.91%

Returns

7.93%

Highest Returns

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Conservative Fund

Canara HSBC Oriental Bank

AUM:233 Cr

233 Cr

NAV

55.4

0.09%

Returns

7.01%

Returns

7.98%

Highest Returns

Returns

7.92%

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Protector

Canara HSBC Oriental Bank

AUM:307 Cr

307 Cr

NAV

64.22

0.06%

Returns

6.07%

Returns

7.01%

Returns

7.89%

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.

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.