I have a unit-linked insurance plan (Ulip) from Bajaj Allianz. The agent told me that I could partially withdraw money from it. Can I withdraw anytime? As I shall be claiming tax benefit for this policy, how long should I continue it to avail the tax benefit?Partial withdrawal is allowed only after the completion of the lock-in period, which varies from 3-5 years depending on the policy. The sum assured will be proportionately reduced by the amount of partial withdrawal made. As per the Income Tax Act, if a person discontinues a Ulip before the premium for five years has been paid, no deduction shall be allowed for the premium paid in the year of termination and the deductions allowed in the past shall become income of the person in the year in which the Ulip is terminated.
