What is the Minimum Lock-In Period for ULIP?

What Is the Minimum Lock-In Period in ULIP?

Why Is Lock-In Period Important in ULIP?

What Will Happen if You Discontinue a ULIP Before Lock-In Period?

Why Should You Not Exit After Lock-In Period in ULIPs?

FAQs About Lock-In Period in ULIP

What is the assured amount in a ULIP plan? up-arrow

The assured sum is the minimum promised money the nominee will receive in case of the policyholder’s unfortunate demise. An insurance company decides this sum and makes an investor aware of it before buying the plan.

How to surrender a ULIP scheme? up-arrow

Contact the associates of the concerned insurance company and provide the following documents to surrender a ULIP successfully:

  • Valid surrender form
  • Original policy documents
  • Utility bills (e.g., Electricity bill)
  • ID proof (Aadhaar card and PAN card)
  • Cancelled cheque displaying your name

Why is the lock-in period beneficial for you? up-arrow

The lock-in period encourages you to plan your long-term goals financially. It also helps to preserve liquidity and reap significant advantages from equity assets. This concept stabilises a fund’s assets and protects the funds of all the parties involved.