ULIP is different from normal plans as it provides you with several flexibilities. It offers the flexibility of partially withdrawing some funds from its present Fund Value. Partial withdrawal, as the name rightly indicates, means partially withdrawing certain amount of money from the Fund Value.

There are certain pre-conditions of Partial Withdrawal:

* Partial Withdrawal is permitted simply if all regular premiums have been properly paid and moreover the policy is in force.

* The first partial withdrawal is permitted simply after fifth policy anniversary for all regular premium contracts and single premium contracts.

* There is usually a minimum and a maximum limit of Partial Withdrawal in each policy. Even So, at least one years Annual Premium should be left behind in the Fund Value after Partial Withdrawal.

* An option of Systematic Partial Withdrawals can also be provided by the insurer, where the money, withdrawn partially from the policyholders Fund Value will be directly credited into his account.

* The Insurer as well allows certain number of free Partial Withdrawal transactions each year.

* Where partial withdrawals have been granted, in case of death while in the term of the policy, the sum assured might be minimized to the extent of the amount of partial withdrawals made during the two year period directly earlier the death of the life assured.

* However, on attainment of 60 years of age of the life assured, all the partial withdrawals may be set off towards the sum assured payable on death. The conditions in this paragraph shall not apply in regard of pensions and annuity business.

* For the purpose of partial withdrawals, all top-up premiums-whether or not linked with insurance cover-shall be treated as single premium; for a top-up premium made at the time of the contract, a lock-in period of three years will apply right from the date of payment of that top-up premium (this situation will not apply if the top-up premiums are paid in the time of the last three years of the contract).

So, Partial Withdrawal will become quite crucial and even exciting element in each life insurance unit linked policy for the policyholder and needs to be rightly understood for efficient utilization of the flexibility offered.

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