Partial Withdrawl From ULIP in 2025- Process, Eligibility

Partial Withdrawal Feature in ULIPs

ULIPs offer a flexible feature known as partial withdrawal. This allows policyholders to access a portion of their invested funds without surrendering the entire policy. This can be particularly useful in times of financial need, providing a source of liquidity without completely compromising future benefits.

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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.

Fund Name

AUM

NAV

Returns (in %)

3 Year

5 Year

10 Year

Equity Fund

SBI Life

AUM:77,698 Cr

77,698 Cr

NAV

187.48

0.51%

Returns

8.73%

Returns

8.53%

Returns

10.82%

Highest Returns

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Top 300 Alpha 50 Pension Fund

HDFC Life

AUM:40 Cr

40 Cr

NAV

10.06

-0.04%

Returns

16.1%

Returns

18.6%

Highest Returns

Get Details

High Growth Pension Fund

Axis Max Life

AUM:4 Cr

4 Cr

NAV

10.05

0.02%

Returns

22.85%

Highest Returns

Returns

22%

Returns

20%

Get Details

Opportunities Fund

ICICI Prudential Life

AUM:3,622 Cr

3,622 Cr

NAV

58.48

0.23%

Returns

12.7%

Returns

13.3%

Highest Returns

Returns

12.6%

Get Details

Multi Cap Fund

Tata AIA Life

AUM:10,579 Cr

10,579 Cr

NAV

64.22

0.26%

Returns

17.08%

Returns

21%

Returns

22%

Highest Returns

Get Details

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Disclaimer :
˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI 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.

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.

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.