Can I withdraw ULIP after 3 years?

No, you cannot withdraw from a Unit Linked Insurance Plan (ULIP) after just 3 years. According to the Insurance Regulatory and Development Authority of India (IRDAI), ULIPs have a mandatory lock-in period of 5 years. This means you cannot make any withdrawals or surrender the policy before completing this period.

If you decide to surrender your ULIP before the 5-year lock-in period ends, the insurer will deduct discontinuance charges from your accumulated funds. The remaining amount will be transferred to a discontinuance policy fund, and you will only receive this amount after the lock-in period is over.

After the 5-year lock-in period, you can make partial withdrawals from your ULIP. However, it is important to note that frequent withdrawals can impact the growth of your investment and reduce the life insurance coverage provided by the policy. Always check the specific terms and conditions of your ULIP policy before making any decisions.

*A discontinuance fund is where your ULIP money goes if you stop or surrender the policy before the required 5-year lock-in period ends.