What Happens If You Stop Your Ulip Premiums Before 3 Years

What is the difference between ULIP and Traditional Plans?

2025-04-25

929 Views

7 minutes read

Begin securing your future

Please enter correct name Please enter the Full name
Please enter valid mobile number Please enter Mobile Number
Please enter valid email Please enter Email
Consent is required

Enter OTP

An OTP has been sent to your mobile number

Didn’t receive OTP?

Application Status

Name

Date of Birth

Plan Name

Status

Name of the policy holder

Policy Holder Name

Policy No.

Policy Number

Address of the Policyholder as per records

Address

Unclaimed Amount

Unclaimed Amount
Error

Sorry! No records Found

.  Please use this ID for all future communications regarding this concern.

Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

Exit Pop Up

Live Life More Confidently

Get best insurance from our experts

Name is required Name should be Valid
Mobile Number is required Mobile Number should be Valid
DOB is required DOB should be Valid
Annual Income is required
Please tick to proceed further.

Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

What is the difference between ULIP and Traditional Plans?

The simplest policy is a traditional term plan which offers life cover for a fixed number of years and nothing else. Other traditional plans offer an investment component where you get a survival benefit as well, the insurance company takes care of this and offers some sort of minimum returns. With a ULIP, there are no guaranteed minimum returns. Your investment return may be more than a traditional plan; it may also be less. However, you have more control and flexibility because you can choose and change how your money is invested during the life of the policy.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.

Recent Blogs

What Is ULIP & Why Do People Invest in It?
18 Feb '26
918 Views
7 minute read
Understand ULIPs, how they work, their benefits, charges, tax rules, and why investors choose ULIPs for long-term wealth creation.
Read More
Ulip
Partial Withdrawal from ULIPs: Steps, Limits & Eligibility
11 Feb '26
3894 Views
6 minute read
ULIPs allow partial withdrawals under certain conditions. Learn the limits, steps and eligibility for partial withdrawals with Canara HSBC Life Insurance.
Read More
Ulip
What are the Advantages and Disadvantages of ULIP Plan?
22 Jan '26
1922 Views
7 minute read
Know the key disadvantages of ULIPs, including charges, risks, and lock-in. Learn tips to manage and reduce ULIP investment drawbacks.
Read More
Ulip

FAQs related to ULIP Discontinuance

If you discontinue your ULIP, the insurance company will reimburse the proceeds of the discontinued policy at the end of the lock-in period.

If you decide to close your ULIP before maturity, the insurance company deducts a discontinuance fee from your total amount and moves the rest to a Discontinuance fund.

ULIPs have a mandatory lock-in period of 5 years.

Discontinuance charges in ULIPs are fees that are deducted as a percentage of the total ULIP in case you decide to stop your premium payments before the lock-in period. 

If you don’t pay the ULIP premium after one year, the value you invest into the ULIP will be transferred to a discontinued policy fund.

If the ULIP policy lapses, the ULIP funds will be transferred to a discontinued policy fund. The investor will be provided a revival period of 3 years to revive the ULIP.