Lock-in period

Every unit-linked insurance plan has a five-year lock-in. During it there is no surrender and no withdrawal, full or partial — not a penalty for early exit, but no access at all.

It is a regulatory feature of the product type rather than a term set by any one insurer, and it is the thing to be most certain about before buying one.

Related terms

• ULIP A unit-linked insurance plan. Part of the premium buys cover, the rest is invested in funds you choose.
• Surrender value What the insurer pays if you end a policy early, before maturity.
• Fund value The current worth of the units held under a unit-linked policy.

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