ICICI Pru Gift Select Calculator

ICICI Pru Gift Select Calculator

What this calculator does

ICICI Pru Gift Select (UIN: 105N223V05) is a non-linked, non-participating, individual savings life insurance plan built around one headline feature: Guaranteed Income starting from the first day of the policy. Unlike plans where income only begins after premiums finish, Gift Select pays a Guaranteed Income every year of the Policy Term - including the years you are still paying premiums.

Three choices shape the benefit:

• Premium Payment Term (PPT) - how many years you pay premiums (5 to 15 years).
• Policy Term - the total number of years Guaranteed Income is paid (17 to 50 years), which must be at least as long as the PPT.
• Guaranteed Income Option - Level Guaranteed Income stays flat every year, or Increasing Guaranteed Income grows by 5% each year on a compounding basis, useful for keeping pace with rising costs over a long income period.

At the end of the Policy Term, a Guaranteed Maturity Benefit - a percentage of your total premiums paid, chosen when you buy the policy - is paid out alongside the final income instalment. If the life insured passes away during the Policy Term, a lump-sum Death Benefit is paid to the nominee.

This calculator gives you an indicative estimate of:

• the premium payable per instalment and in total, based on your chosen mode
• the Guaranteed Income you'd receive in Year 1, and the total income received across the whole Policy Term
• the Guaranteed Maturity Benefit payable at the end of the Policy Term
• 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 income only), the income payout, and the death benefit for that policy year

Formula Used

Eligibility. Entry age must be between 18 and 60 years, the Policy Term must be at least as long as the Premium Payment Term, and the policy must mature by age 99:

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

Premium payable. The Annualized Premium you enter is loaded slightly for more frequent payment modes (reflecting the insurer's cost of collecting premiums more often):

$$InstalmentPremium = AnnualizedPremium \times ModeFactor$$ $$TotalPremiumPayable = InstalmentPremium \times InstalmentsPerYear \times PPT$$

Guaranteed Income rate. The illustrative annual income rate (as a fraction of Annualized Premium) rises slightly with a longer Premium Payment Term, since a longer PPT means a larger total premium base funding the guarantee:

$$IncomeRate = 0.055 + 0.0015 \times (PPT - 5)$$

Level Guaranteed Income pays the same amount every policy year from Year 1 through the end of the Policy Term:

$$Income_{level} = IncomeRate \times AnnualizedPremium$$ $$TotalIncome_{level} = Income_{level} \times PolicyTerm$$

Increasing Guaranteed Income starts lower (80% of the level income) but compounds by 5% every year:

$$Income_{year} = 0.8 \times Income_{level} \times (1.05)^{year - 1}$$ $$TotalIncome_{increasing} = \frac{Income_{year=1} \times \left[(1.05)^{PolicyTerm} - 1\right]}{0.05}$$

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 Policy Term:

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

Death Benefit. The Sum Assured is 11 times the Annualized Premium; if this is lower than 105% of premiums paid to date, the higher amount is paid (a standard guaranteed floor used across traditional Indian savings plans):

$$DeathBenefit(year) = \max\left(11 \times AnnualizedPremium,\; 1.05 \times PremiumsPaidToDate(year)\right)$$

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 and Policy Term (the Policy Term must be equal to or longer than the Premium Payment Term).
3. Pick Level or Increasing Guaranteed Income, and your preferred Guaranteed Maturity Benefit percentage.
4. Select your Premium Payment Mode (Yearly, Half-Yearly, Quarterly, or Monthly).
5. Submit to see your premium, 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, a 25-year Policy Term, Level Guaranteed Income, and a 100% Guaranteed Maturity Benefit, paying yearly.

• Income rate: 0.055 + 0.0015 × (10 - 5) = 0.0625
• Year 1 Guaranteed Income: 0.0625 × ₹1,00,000 = ₹6,250, paid every year for 25 years
• Total Guaranteed Income: ₹6,250 × 25 = ₹1,56,250
• Guaranteed Maturity Benefit: 100% × (₹1,00,000 × 10) = ₹10,00,000, paid at the end of Year 25
• Death Benefit (Year 1): max(11 × ₹1,00,000, 1.05 × ₹1,00,000) = ₹11,00,000

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.