Home |Life Insurance | What happens if I stop paying for Unit Linked Insurance Plan?

What happens if I stop paying for Unit Linked Insurance Plan?

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Shailesh Kumar, Co-founder, Insurance Samadhan verified
Answered on October 06,2021

ULIP has a lock-in period of 5 years. If you stop paying premium after one year then all fund value would move under a discontinued policy. Your life cover and charges would stop. The discontinued fund does not participate in active fund and just earns an interest of 3 %. The same treatment is given if you discontinue premium till 5 years.

Post 5 year, it is an active fund as lock-in period is over and you can terminate the contract anytime after 5 years and discontinue premium payment.

Unlike traditional products where there is a surrender charge but ULIP has no surrender charge. 

Hope this suffice 

Shailesh@insurancesamadhan.com

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