What Are the Maturity Benefits in ULIP?

What Happens to ULIP After Maturity?

What Are ULIP Maturity Benefits?

How to Claim Maturity Benefits of ULIP?

What Are the Documents Needed for Claiming Maturity Benefit?

FAQs About Maturity Benefits in a ULIP

How long does it take to process maturity benefit claims in ULIPs? up-arrow

Once you accurately fill out the claim form and send it to the insurer, they will verify it and transfer the money to the bank account. The process will be completed within 30 days from the date of receipt of all the documents.

When can I not claim maturity benefit on ULIP? up-arrow

You will not be eligible for the maturity benefit on purchasing a ULIP with a yearly premium of more than ₹2.5 lakhs post-February 1, 2021. Hence, you should keep this condition in mind while buying a ULIP policy.

Can I claim maturity benefit on surrendering ULIP before five years? up-arrow

No, you will not be eligible to receive a maturity benefit on surrendering a ULIP during the lock-in period, that is, before at least 5 years from purchase. On the contrary, you will have to pay a tax on the surrender amount of ULIP.

Can I get a maturity benefit on surrendering ULIP after five years? up-arrow

Yes, you can get a tax-free maturity amount on surrendering your ULIP policy after the lock-in period of 5 years. Also, you will not have to pay any penalty or additional charges, ensuring maximum savings.

How is maturity benefit different from death benefit? up-arrow

Only a policyholder can claim a maturity benefit on outliving their policy duration. On the contrary, a nominee can avail death benefit of a ULIP policy in case of the untimely demise of the policyholder.