ICICI Pru Gift Pro Calculator

ICICI Pru Gift Pro Calculator

What this calculator does

ICICI Pru Gift Pro (UIN: 105N201V07) is a non-linked, non-participating, individual savings life insurance plan built around Guaranteed Income paid at a time of your choosing. Every benefit is fixed at the time you buy the policy - nothing depends on bonuses the insurer may or may not declare later.

You choose one of three Income Options at inception:

• Early Income - Guaranteed Income starts from Policy Year 1, running alongside your premium payments for the years you're still paying, then continuing alone.
• Regular Income - Guaranteed Income starts only once your Premium Payment Term ends, and continues until the end of a Policy Term you choose.
• Life Long Income - Guaranteed Income starts once your Premium Payment Term ends and continues for the whole of life, up to age 99 - useful for a retirement-style income stream that can't outlive you.

Whichever option you pick, a Guaranteed Maturity Benefit - a percentage of your total premiums paid, chosen when you buy the policy - is paid at the end of the benefit period alongside the final income instalment. If the life insured passes away during the benefit period, a lump-sum Death Benefit is paid to the nominee instead.

This calculator gives you an indicative estimate of:

• the Annual Guaranteed Income and the per-instalment amount for your chosen payment mode
• the Guaranteed Maturity Benefit payable at the end of the benefit period
• the Death Benefit payable to your family, which rises over time as premiums accrue
• a year-by-year schedule showing the phase (paying premiums, receiving income, or both), the income payout, and the death benefit for that policy year

Formula Used

Eligibility. Entry age must be between 0 and 60 years. For Early Income and Regular Income, the chosen Policy Term must be longer than the Premium Payment Term (PPT) and the policy must mature by age 99. For Life Long Income, the effective Policy Term always runs to age 99:

$$EntryAge + PolicyTerm \le 99 \qquad \text{and} \qquad PolicyTerm > PPT$$

Income start year depends on the Income Option:

$$IncomeStartYear = \begin{cases} 1 & \text{Early Income} \\ PPT + 1 & \text{Regular or Life Long Income} \end{cases}$$

Guaranteed Income rate. The illustrative base rate (as a fraction of Annualized Premium) rises with a longer Premium Payment Term, then is scaled by the Income Option - Early Income pays a slightly lower rate since payouts begin immediately, Life Long Income pays a lower per-year rate since it runs for many more years:

$$BaseRate(PPT) \in \{0.52, 0.56, 0.60, 0.64, 0.68, 0.75\} \text{ for } PPT \in \{5, 6, 7, 8, 10, 12\}$$ $$EffectiveRate = BaseRate(PPT) \times OptionFactor, \quad OptionFactor \in \{0.85, 1.00, 0.70\}$$ $$AnnualGuaranteedIncome = EffectiveRate \times AnnualizedPremium$$

Total income is paid every year from the Income Start Year through the end of the Policy Term:

$$TotalGuaranteedIncome = AnnualGuaranteedIncome \times (PolicyTerm - IncomeStartYear + 1)$$

Guaranteed Maturity Benefit. A percentage of total premiums paid over the PPT, chosen at inception (100%, 125%, or 150%), paid at the end of the benefit period:

$$MaturityBenefit = \frac{MaturityBenefitPercent}{100} \times (AnnualizedPremium \times PPT)$$

Death Benefit. The Sum Assured multiplies the Annualized Premium by 10x if entry age is under 45, or 7x otherwise. The Death Benefit paid is the highest of the Sum Assured, 7 times the Annualized Premium, or 105% of premiums paid to date:

$$DeathBenefit(year) = \max\left(SumAssured,\; 7 \times AnnualizedPremium,\; 1.05 \times PremiumsPaidToDate(year)\right)$$

How to Use

1. Enter your Age at Entry and the Annualized Premium you plan to pay each year.
2. Choose your Premium Payment Term (5 to 12 years).
3. Pick your Income Option - Early, Regular, or Life Long Income.
4. For Early or Regular Income, choose a Policy Term longer than your Premium Payment Term (this is ignored for Life Long Income, which always runs to age 99).
5. Pick your preferred Guaranteed Maturity Benefit percentage and Payment Mode.
6. Submit to see your income schedule, maturity benefit, and death cover.

Worked Example

A 35-year-old chooses an Annualized Premium of ₹1,00,000, a 10-year Premium Payment Term, Regular Income, a 20-year Policy Term, a 100% Guaranteed Maturity Benefit, paying yearly.

• Effective rate: 0.68 (PPT 10) × 1.00 (Regular Income) = 0.68
• Income Start Year: 10 + 1 = 11
• Annual Guaranteed Income: 0.68 × ₹1,00,000 = ₹68,000, paid every year from Year 11 through Year 20 (10 years)
• Total Guaranteed Income: ₹68,000 × 10 = ₹6,80,000
• Guaranteed Maturity Benefit: 100% × (₹1,00,000 × 10) = ₹10,00,000, paid at the end of Year 20
• Total Payout: ₹6,80,000 + ₹10,00,000 = ₹16,80,000
• Death Benefit (Year 1): max(₹10,00,000, 7 × ₹1,00,000, 1.05 × ₹1,00,000) = ₹10,00,000

This is an illustrative model of the plan's benefit structure, not a reproduction of ICICI Prudential's official rates - always refer to the insurer's benefit illustration before buying a policy.