ULIP – Lockin Period and maturity?



ULIPs have a locking period of 3 years. Consider the following example.

I take a ULIP for 15 years. I am paying a regular monthly premium till 15 years. So on maturity will I get the whole amount? Will the investment done less than 3 year back(13th , 14th and 15th year) still attract the lockin period?

5 Replies to “ULIP – Lockin Period and maturity?”

  1. Lock in period is the period of three years from the first payment. Meaning, you cannot exit from it before completing the term (i.e. 36 months in your case). Maturity proceeds will be much higher as you regularly pays the premium full term. Read the policy terms and conditions. Good luck



  2. Hi Mayank,

    ULIP plans have lock in period of initial 3 years i.e. once you take ULIP, you can not exit it before 3 years. However, if you pay regular premiums for 15 years, then at maturity, you will get your entire fund value with any additions (if any).

    Regards,

    Pranav


  3. HI there
    For ULIPS, Suppose you start paying on 1.1.2010 then you can withdraw after 1.1.2013 to be eligible for tax exemptions.
    The investment done for less than 3 years (13th 14 th and 15th) can be withdrawn after 15 years and you will be eligible for exemption on that too.

    Happy investing !!!

    Dipesh
    LIC Insurance advisor


  4. Hi Mayank,

    The lock in period of a ULIP plan is three years from the date of payment of the first premium. After the completion on the third year you can withdraw your investments. Thus your lock in period for all the premiums paid after the third year can be as less as one day.

    The returns from such investments will also be tax free provided the premium paid in any year is not more than 20% of sum assured.

    Happy investing,
    Ripul





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