What is top-up premium?

Top Up is the additional amount over your regular premium that the policyholder can invest to get returns. This facility is only allowed in Unit Linked Insurance Plans (ULIP). Top-up Premium is not allowed during the last 5 years of the policy term. A top-up gives an advantage to increase the savings by means of investing, in addition to the regular premium


The total top-up Premiums at any point oftime shall not exceed Total Premium paid till date. In case you have surplus amount in your hands, it might be a good idea to invest the amount in your existing ULIP rather than purchasing a separate policy. You usually get a higher allocation compared to your regular premium as the allocation charges for Top Up is lower than purchasing a separate plan. You also get Additional Life Cover of equal to 125% of the Top Up Premium paid in case you are less than 45 years and 110% of the Top Up Premium in case you are 45 years or more.


All top ups come with a lock in period of 5 years and a partial withdrawal can only be made after the lock in period. Top-up premiums also enjoy the same tax benefits as a regular premium.

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