Lesson 38 of 53 · Term plan, endowment or ULIP · 4 min read · Reviewed 29 Oct 2026
A ULIP has a 5-year lock-in: stop or surrender it inside that and the money moves to a discontinued policy fund, paid out after the fifth year. An endowment plan pays a surrender value after one full year’s premium, set by IRDAI’s minimum formula. Every new policy has a 30-day free look to return it.
A term plan only pays on death. Endowment plans and ULIPs mix cover with saving.
A ULIP locks money for 5 years. Stopping early moves it to a discontinued policy fund until the lock-in ends.
An endowment plan’s surrender value is payable after one full year’s premium, under IRDAI’s minimum formula.
Key idea: You have 30 days from receiving the policy document to return it under the free look.
Try the short quiz on this page to check what stuck.
Savings plans with a surrender value must offer a loan. ULIPs can’t.
15 days for monthly premiums and 30 days for others.
It depends on the premium and issue date; check your policy’s terms and a CA.
For learning only, not investment advice. Built in India by a team that tracks its own money on Reva.