ICICI Pru Gold Calculator

ICICI Pru Gold Calculator

ICICI Pru Gold is a participating (with-bonus) protection and savings plan that pays you a regular income for whole of life - from the start of your Income Period all the way to age 99 - funded by premiums paid over a shorter Premium Payment Term. Because it is a participating plan, your regular income has two parts: a Guaranteed Income (GI) fixed at inception, and a Cash Bonus (CB) linked to bonuses the company may declare, which is not guaranteed. This calculator projects your GI, CB, any Guaranteed Booster, total income, and the Death Benefit payable to your nominee.

The Three Plan Options

Choose one option at inception - it cannot be changed later:

• Immediate Income - regular income starts from Policy Year 1, overlapping with your premium-paying years, and continues for the rest of the policy term.
• Immediate Income with Booster - same as Immediate Income, but a Guaranteed Booster (an extra lump sum) is paid on top of the regular income every 5th policy year. To fund this, the regular Guaranteed Income rate is slightly lower than the plain Immediate Income option.
• Deferred Income - you choose a Deferment Period (as early as Policy Year 2, as late as Premium Payment Term + 1), during which no income is paid. Once income starts, the rate is higher, since it has had time to build up.

How the Guaranteed Income Is Calculated

$$\text{Base Rate} = \text{Income Rate}(PPT)$$

The base Income Rate rises with a longer Premium Payment Term (PPT) - paying premiums for longer builds a larger guaranteed income.

$$\text{Higher Premium Benefit} = \begin{cases} 1.25\%, & AP \geq 10{,}00{,}000 \\ 1.00\%, & AP \geq 5{,}00{,}000 \\ 0.25\%, & AP \geq 1{,}00{,}000 \\ 0\%, & \text{otherwise} \end{cases}$$

A larger Annualized Premium (AP) earns an extra rate on top of the base rate, reflecting the plan's Higher Premium Benefit.

$$\text{Effective GI Rate} = \text{Base Rate} + \text{Higher Premium Benefit}$$

For Immediate Income with Booster, this rate is scaled down by a factor of 0.92 to help fund the periodic booster. For Deferred Income, the rate is increased by 3% for every year of deferment beyond the minimum of 2 years:

$$\text{Deferred Effective GI Rate} = \text{Effective GI Rate} + 0.03 \times (\text{Deferment Period} - 2)$$ $$\text{Annual Guaranteed Income} = AP \times \text{Effective GI Rate}$$

Cash Bonus and Guaranteed Booster

$$\text{Annual Cash Bonus} = 2\% \times \text{Sum Assured on Death}$$

The Cash Bonus is illustrative and non-guaranteed - it depends on bonuses the company actually declares. The Guaranteed Booster, paid every 5th policy year under the Booster option, equals one year's Annualized Premium.

Sum Assured and Death Benefit

$$\text{Sum Assured on Death} = \begin{cases} 10 \times AP, & \text{Age at Entry} < 45 \\ 7 \times AP, & \text{Age at Entry} \geq 45 \end{cases}$$

If you pass away during the policy term, your nominee receives the Death Benefit - the highest of three amounts:

$$\text{Death Benefit} = \max\big(\text{Sum Assured on Death},\; 7 \times AP,\; 1.05 \times \text{Total Premiums Paid till Date}\big)$$

The Policy Term itself runs from your Age at Entry until age 99, since Gold's regular income is designed to continue for whole of life.

How to Use This Calculator

1. Enter your Age at Entry.
2. Enter your Annualized Premium.
3. Choose your Premium Payment Term - 5, 6, 7, 8, 10, or 12 years.
4. Choose your Plan Option - Immediate Income, Immediate Income with Booster, or Deferred Income.
5. If you chose Deferred Income, enter your Deferment Period in years.
6. Choose a Payment Mode for how the Guaranteed Income installment is split.
7. Submit to see your Policy Term, Sum Assured, total premiums paid, Guaranteed Income, Cash Bonus, Booster (if applicable), total income over the policy term, and a year-by-year payout and death benefit schedule.

Worked Example

A 35-year-old choosing Immediate Income, with an Annualized Premium of ₹1,00,000 and a 10-year Premium Payment Term:

• Policy Term: 64 years (age 35 to age 99)
• Sum Assured on Death: ₹10,00,000 (10 x Annual Premium, since entry age is under 45)
• Total Premiums Paid: ₹10,00,000 (₹1,00,000 x 10 years)
• Effective GI Rate: 70.25% (base rate of 70% for a 10-year PPT, plus a 0.25% Higher Premium Benefit for a ₹1,00,000 premium)
• Annual Guaranteed Income: ₹70,250, paid every year from Policy Year 1
• Annual Cash Bonus (illustrative): ₹20,000
• Total Income over the Policy Term: ₹57,76,000 (Guaranteed Income plus Cash Bonus over 64 years)

Important Notes

• Only the Guaranteed Income and Death Benefit are guaranteed. The Cash Bonus depends on bonuses the company actually declares each year and is shown here as an illustrative estimate, not a promise.
• The figures on this page are illustrative. They are modeled on the general shape of this class of Indian participating income plan and are not a reproduction of ICICI Prudential Life's official Benefit Illustration for UIN 105N190V07.
• Tax benefits may be available on premiums under Section 80C and on the income/death benefit under Section 10(10D) of the Income Tax Act, subject to the conditions in force at the time.
• This calculator is for educational illustration only and does not constitute financial or insurance advice. Refer to the official ICICI Pru Gold policy document and Benefit Illustration before making any purchase decision.