The Hindu Business Line : Kotak Easy Growth Plan

KOTAK Easy Growth is a single-premium unit-linked plan. The features are similar to those offered by other market-linked plans. It is structured as a single-premium plan but allows you to invest additional sums that will go towards investments.

You can choose a higher or lower risk cover depending on the need. The plan allows you to choose a life cover of either five times the single premium or 1.02 times the single premium. The important point to consider here is the tax benefit. According to the tax laws, if your premium payment in any year exceeds 20 per cent of the sum assured, you will not be eligible for the exemption on withdrawal or maturity.

Similarly, when paying additional sums into the plan any time, one has to keep in mind that the amount paid is less than 20 per cent of the sum assured to get the tax benefit. The features are very similar to other unit linked plans:

You can choose from four investment funds with different investment patterns to suit your risk profile.

You can switch between funds by paying in the buy-sell spread charges.

You can withdraw at any time subject to a balance of Rs 50,000. The high balance requirement limits your flexibility to some extent.

The plan does not have a maturity period. You can stay invested as long as you want.

You can make lumpsum payments into the plan when you have excess liquidity. They will attract a charge of 2.5 per cent.

On death, the sum assured less any withdrawals made are paid out.

At age 61, the life cover will become equivalent to the higher of the initial single premium amount or the unit value.

You can take a loan of up to 50 per cent of the surrender value of the policy.

The life cover charges are deducted on a one-year renewal basis.

If you have chosen the five times life cover option, you can add additional benefits such as Critical Illness Benefit, Accidental Death Benefit and Permanent Disability Benefit.

Readers are requested to compare products featured under this column with similar ones offered by other players.

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