Facts Your Insurance Advisor Hides
2. Lock in Period
The lock in period is another feature that an advisor is usually doesn’t explain. Lock in period is the mandatory period for which the money must stay invested with the insurance company in order to derive benefits. In case one wish to withdraw a chunk of the sum during this period, there are likely to be severe consequences which will significantly reduce the net amount to be paid to the investor.
In case of withdrawal before completion of the minimum prescribed lock in period, 4 percent of the net amount gets loss. Thus one must check the lock in period stated by the company and the possibilities of any requirements for withdrawing in between and then put in the money.
