Partial Withdrawal
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Rishabh Surana
Unit Linked Policies provide flexibility to its policyholders to “partially” withdraw some amount of money from his own accumulated Fund Value . Partial withdrawals can only be made after 5 years because your fund value is low in the beginning. Only after you have paid a few premiums does your fund value begin to grow. Due to this, partial withdrawal before the lock-in period is not an option.
However, keep in mind that you can’t make a partial withdrawal from a unit linked pension plan. Also, in case a minor’s life is insured in the policy, partial withdrawals can be made only when the life insured attains 18 years of age.
Every partial withdrawal leads to a decrease in the sum assured. It depends on the amount withdrawn during the two-year term before the policyholder’s demise. If you made the withdrawal more than 2 years ago, the sum assured will remain unaffected.
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http://forum.theactuarialclub.com/viewtopic.php?t=2745
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