The insurance regulator has said that partial withdrawals would now be available under pension products from life insurance companies to meet certain specific financial needs of the policyholders. Typically pension and retirement plans offered by life insurers have low liquidity and may also have a long gap between accumulation and payment periods, making it difficult for policyholders to meet urgent financial needs. policyholders would now be able to make partial withdrawals in individual pension products during deferment of up to 25 per cent of total premiums paid as on the date of the partial withdrawal and such withdrawals will not result in termination of the policy contract.
Withdrawals will be allowed only three times during the deferment period and only against stipulated reasons like higher education or marriage of children, purchase/construction of residential house/flat, medical expenses, treatment of critical illness.
