Emergencies can come up when you least expect them. So, the big question about ULIP money withdrawal before maturity is something you may think about, especially with investments like Shriram Life Wealth Pro Plan.
The answer is that you cannot withdraw any money from your ULIP during the first five years, because of the lock-in period. But once those five years are completed, ULIP partial withdrawal becomes possible for you. Let us see how and when you can actually access your funds.
ULIP Withdrawal Basics For You
Every ULIP through Shriram Life Insurance has a lock-in period of five years. During this phase, ULIP money withdrawal before maturity isn’t allowed, for either full surrender or partial access. The lock-in is built to help your savings grow steadily and to keep your life cover active.
Partial Withdrawals After Lock-in
Once you complete the five-year lock-in with Shriram Life Wealth Pro Plan, ULIP partial withdrawal becomes possible. Here’s how it works:
- You can withdraw up to 20% of the fund value in a single year.
- The first withdrawal in a policy term is free; after that, a minimal charge applies.
- Withdrawals come first from any “top-up” premium built up in your account, then from the base premium fund, as needed.
- Withdrawals are allowed only if the fund value is enough to meet minimum policy requirements.
What If You Need Money Before Five Years?
If you need funds during the lock-in period, full or partial withdrawals are not permitted. Discontinuation, or stopping premium payments, moves your fund to a Discontinued Policy Fund. The money earns a minimum guaranteed interest, and you can only access it after lock-in or revival period ends, whichever is later. But you lose active life cover and extra benefits during this time.
Rules for ULIP Partial Withdrawal
For Shriram Life Wealth Pro Plan, partial withdrawals are counted only from the base premium fund when determining death benefits. Withdrawals from “top-up” premium funds don’t impact your sum assured. Withdrawals are not allowed if your policy was issued for a minor until they reach the age of 18. You can withdraw any time after lock-in, provided policy conditions are met and the fund value supports the transaction.
What Happens at ULIP Maturity?
At the end of your ULIP policy term, you get the accumulated fund value. You can take it as a lump sum or even in instalments using the settlement option. You can also choose to withdraw the full maturity value at once.
Why Is the Lock-in Important?
The lock-in period makes sure that there is disciplined investing as well as insurance protection for your family. Without it, you may tend to withdraw at every market dip, losing long-term returns and security. Regulators mandate the lock-in so that you get sustained growth and reliable cover.
ULIP Money Withdrawal & Partial Withdrawal (Shriram Life Wealth Pro Plan)
Let us understand when and how ULIP partial withdrawal works with the table below.
Practical Guidance: Make Your Moves Wisely
If you are considering ULIP withdrawal before maturity, then it is important for you to weigh its impact on your life cover as well as your policy benefits. Use partial withdrawals only after five years and keep in mind the purpose of building long-term wealth. Shriram Life Wealth Pro Plan provides flexibility after the lock-in period while making sure your protection and growth are not cut short unexpectedly.
Conclusion
Early access with ULIP money withdrawal before maturity for you, comes with clear rules in Shriram Life Insurance ULIPs. You can follow these guidelines to balance immediate needs with long term security as well as take advantage of features like free partial withdrawal, Wealth Boosters (every five years after the tenth year) and the peace that comes from knowing your family’s future is protected.
For detailed information visit, Shriram Life Wealth Pro ULIP Plan.
FAQs
1. Is partial withdrawal allowed before ULIP maturity?
Partial withdrawal is not allowed during the first five years (lock-in period), but ULIP partial withdrawal becomes possible only after this period with Shriram Life Wealth Pro Plan.
2. Are there penalties for early withdrawals from ULIPs?
Yes, after the lock-in period, the first partial withdrawal is free and a charge of ₹250 is applied for every additional withdrawal during the policy term. Early withdrawal during the first five years is not allowed at all.