Sometimes emergency strikes and there is a need for liquid funds. It is understandable that you might want to draw into your investments. For this purpose, you are allowed to make partial withdrawals without having to completely surrender it. Partial withdrawals are allowed from the 6th year, i.e. when the lock-in period is over and all premiums for the first 5 policy years have been paid. You are allowed to take a minimum amount of Rs. 5000 and a maximum partial withdrawal amount that leaves the fund value at least 120% of the annualized premium immediately after the withdrawal. You can make as many partial withdrawals as needed in a policy year, subject to the above conditions, free of charge.
In fact, if you have chosen Life Option with Premium Funding Benefits, then the amount of your death benefit is not reduced by the partial withdrawals made by you.
However, if you wish to surrender your investment in the Invest 4G Unit Linked Insurance Plan, then it is treated differently. If you surrender the policy within the first 5 policy years, that is within the lock-in period, then surrender charges are levied on the fund value and this amount is transferred to the Discontinued Policy Fund and will earn at least a minimum guaranteed interest rate of 4% or as prescribed by IRDAI from time to time. The proceeds of the discontinued policy will be paid to you only after completion of the 5th policy year. On the other hand, if you surrender after the 5-year lock-in period, the fund value will be paid to you immediately without any surrender charges or penalty.