(Last Updated: March 30, 2018)
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Strategy for ULIP at maturity

  • Hello everyone,

    I’m invested in a ULIP which matures in 2022. I had started it in Jan 2012. I was expected to pay premiums for first 5 yrs only. I’ve managed to pay all already.

    In 2022, I’m expected to take away either the entire fund value as a lump sum or give Standing Instructions to be able to withdraw the fund value in installments over the next 5 yrs.

    As it stands today, my investment is spread over equity funds (>90%) and debt funds (<10%) that are available as part of the ULIP.

    I’ve been managing asset allocation on my own so far. I cannot change asset allocation once policy matures.

    At maturity,

    1. Should I withdraw entire fund value or portions only? I don’t foresee a need in 2022 to withdraw a lump sum.
    2. If in parts, should I withdraw monthly, quarterly, annually etc?
    3. Should I leave asset allocation as is, even at time of maturity, so it may have a chance to earn higher returns?
    4. Should I start moving assets from equity portion to debt portion (and when), so as to complete the entire movement prior to maturity, and to ensure that
      a. my entire fund value at time of withdrawal attracts zero or least tax?
      b. my investment is safe from market volatility if I choose to withdraw post maturity over 5 yrs?

    Appreciate your responses and any other strategic advice. Please let me know if you have any questions before you are able to answer mine 🙂

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