Future Generali India Life Insurance Unit Linked Insurance Plans (ULIPs) allow families to achieve the dual goals of long-term wealth creation and creating a financial safety net via insurance. A part of the your premium is used to build a safety cover for your loved ones, and the rest of the premium is invested in various debt and equity-linked instruments that can grow your wealth, depending on your plan and choice.
Savings stashed for future planning may suddenly be required for present emergencies. Therefore, some ULIPs offered by Future Generali India Life Insurance come with the powerful feature of partial withdrawals. After a lock-in period of 5 years, you can withdraw a portion of your total fund value. Some rules govern these withdrawals:
- You may not withdraw from a ULIP linked with pension plans
- Insured minors, if any, can only make partial withdrawals after they turn 18
- At a minimum level, you must withdraw a sum of ₹5,000
ULIPs are EEE(Exempt Exempt Exempt) schemes - which means that they help you get tax exemptions three times over. Alongside the premiums paid and the final maturity corpus, the partial withdrawals are also exempted from tax liabilities. Therefore there is no need to worry about the additional tax burden coming from your ULIP withdrawals.
Now let’s look at the various goals that partial withdrawals can help you achieve, as well as the problems it can help you solve:
- Medical emergencies: ULIP partial withdrawals can help you stay prepared for medical emergencies. With the funds readily available to you, you can focus on accessing the best treatment instead of worrying about finances.
- House Renovation: Whether it be Diwali renovation or a sudden plumbing issue, ULIP partial withdrawals can help you renovate your house and make it a home you love to call yours.
- Luxury Purchases: A vacation to an exotic spot? Being the first in your town to own the new high-end car? ULIPs partial withdrawals make it possible for you to achieve these aspirations and others.
- Monthly Income Post Retirement: Some Future Generali India Life Insurance ULIPs, like the Future Generali Big Dreams Plan, offer free unlimited partial withdrawals post 5 years of lock-in period. If you buy such a plan, you can systematically use the partial withdrawal feature to supplement your monthly income in your retirement.
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