I just heard that my Life Policy has an encashment section. I was told that I can withdraw part of the amount. Can anyone enlighten me on how does this work or how will it affect my Life Policy.

ILP: You can submit a partial withdrawal by selling specific amount of unit from the funds. As long funds in policy enough to pay for premium, policy remain active.

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Whole Life: You are partial surrender your policy thus reduce our future payout permanently.

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You need to know yours is which.

Different life insurance works differently especially for whole life vs whole life with cash , etc. In short, you best check with your financial advisor or the insurance agent for the correct answers.