In Unit-linked plans, the investment risk in the investment portfolio is borne by the policyholder

A Unit Linked Insurance Plan (ULIP) is an insurance policy that offers the double benefit of life cover* and wealth creation, thereby, helping you achieve the dreams of you and your loved ones. One unique advantage of this plan is that even before your policy matures, you can take out a part of your accumulated fund value. With this flexibility, you can face a financial crisis without taking high-interest loans or liquidating your assets.

While ULIPs have this unique advantage, it is important to understand the features and details of this plan to stay better prepared.

How Partial Withdrawal Works

Premium allocation:

When you invest in a ULIP, a fixed premium needs to be paid. One part of the premium is for providing coverage and the other part is invested in various capital market funds.

Withdrawal of funds:

The part of the premium that gets invested, gets divided into units, each with a specified value. In case of any emergencies, ULIPs allow you to redeem some of those units and withdraw money equivalent to those units.

Limits on Partial Withdrawals

  • Partial withdrawals are allowed only after the first five policy years and on payment of all premiums for the first five policy years
  • Partial withdrawals are allowed only if the Life Assured is at least 18 years of age
  • The minimum and maximum amounts that you can take out may vary with each policy and across insurance providers. However, the maximum withdrawal in a policy year cannot exceed 20% of the total fund value

How to choose the right plan?

While deciding to buy a ULIP, it is better to look for a plan which provides maximum benefits as per the preferred budget. Also consider factors like the stability, customer service quality, the reputation of the brand being opted for, etc. ICICI Pru Lifetime Classic is one such plan that helps to build wealth while also providing the policyholder’s family with a financial safety net in case of an unfortunate event.

Here are some of the top features of the plan:

  • Financial protection: In case of an unfortunate event with the policyholder, the nominee gets the life cover* amount and prevailing fund value as a lump sum payout
  • Rewards: Just by paying premium regularly and staying invested, loyalty additions and wealth boosters^ get added to the investment
  • Top-up$ option: Investment in the plan can be increased anytime as per convenience by using the top–up$ facility
  • Flexible payment options: Premiums can be paid monthly, half-yearly, yearly or as a one-time payment
  • Invest in funds of choice: Various choice of equity, balance and debt funds, allows you to invest as per your risk appetite
  • Tax# benefit: Enjoy tax# benefits as per the prevailing tax# laws


Partial withdrawals are useful in financial shortfalls. However, such withdrawals reduce the size of your total funds and also impact the benefits payable to your nominee. Hence, unless it is an absolute emergency, financial experts advise against withdrawing from your ULIP funds and encourage allowing your savings to benefit from long-term capital growth.

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# Tax benefits under the policy are subject to conditions under Section 80C, 80D, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services tax and Cesses, if any will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.

* Life Cover is the benefit payable on death of the life assured during the policy term.

^ The Company will allocate extra units as below provided all due premiums have been paid:

Premium payment term Loyalty Additions Wealth Boosters
(End of year 6 and 7) (End of year 8 and onwards) (End of every 5th year, starting from the end of 10th policy year)
5 years – 6 years 0.10% 0.10% 1%
7 years – 9 years 0.25% 0.40% 1%
10 years and above 0.25% 0.40% 2%
Single Pay 0.40% 0.40% 1%
  • For single pay policies with a policy term of 5 years, a loyalty addition of 0.25% of the average of daily Fund Values, including Top-up Fund Value, if any, in that same policy year, will be payable at the end of the fifth policy year.
  • Each Loyalty Addition will be a percentage of the average of daily Fund Values including Top-up Fund Value, if any, in that same policy year as mentioned in the table above.
  • Wealth Boosters will be a percentage of the average Fund Values including Top-up Fund Value, if any, on the last business day of the last eight policy quarters.
  • Loyalty Additions and Wealth Boosters will be allocated among the funds in the same proportion as the value of total units held in each fund at the time of allocation.
  • The allocation of Loyalty Additions and Wealth Boosters is guaranteed and shall not be revoked by the Company under any circumstances.
  • If the premium payment is discontinued anytime after 5 years, the number of years for which premiums have been paid will be considered as the premium paying term for the purpose of deciding the Loyalty Additions & Wealth Boosters to be paid for the rest of the policy term as per the table above.


$ Top-up premiums can be paid any time except during the last five years of the policy term, subject to underwriting, as long as all due premiums have been paid. A lock-in period of five years would apply for each Top-up premium for the purpose of partial withdrawals only. At any point during the term of the policy, the total Top-up premiums paid cannot exceed the sum of base premium(s) paid till that time. The minimum Top-up premium is `2,000'.

ICICI Pru LifeTime Classic (unit-linked non-participating individual life insurance plan) - UIN: 105L155V08


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