ICICI Pru Group Loan Secure Calculator
ICICI Pru Group Loan Secure (UIN: 105N152V04) is a non-linked, non-participating group term life insurance plan designed for lenders - banks, NBFCs, housing finance companies, and microfinance institutions - to protect an outstanding loan against a borrower's death. Unlike a standard group term plan where the Sum Assured stays flat or renews yearly at the same level, this is a Credit Life plan: the Sum Assured is tied directly to the borrower's outstanding loan balance and reduces automatically every year as the loan is repaid. This calculator gives you an independent, illustrative estimate of the premium such a group might pay - it is not affiliated with or endorsed by ICICI Prudential Life Insurance Company Limited, and actual premiums are always set by the insurer after underwriting the specific loan portfolio.
Why a reducing Sum Assured
A home loan, business loan, or vehicle loan is repaid in instalments over its tenure, so the amount the lender stands to lose if a borrower dies falls every year - it is highest on day one and zero once the loan is fully repaid. Group Loan Secure prices cover against this declining balance rather than a flat amount, which is why it typically costs less over the loan term than an equivalent flat-cover group term plan.
How the reducing balance is estimated
This calculator amortizes your loan amount using the standard reducing-balance EMI formula for the tenure and interest rate you enter, then reads off the outstanding balance at the start of each policy year:
where P is the loan amount, r is the monthly interest rate, and n is the number of
monthly instalments. The outstanding balance after m months follows the standard
amortization formula and forms the Sum Assured for that policy year.
How the premium is estimated
For each policy year, an illustrative age-banded mortality rate per ₹1,000 of Sum Assured is applied to the average outstanding balance for that year:
The rate is loaded higher for a Hazardous occupation category than Standard, and discounted for larger groups, since risk is pooled across more borrowers with less adverse selection than an individually underwritten loan. You can choose how the resulting cost is packaged:
- Single Premium - the sum of every policy year's cost is paid once, upfront, for the full loan tenure.
- Regular Premium (Yearly) - only the first year's cost is paid as a premium now, with the premium re-rated each year as the outstanding balance falls and the borrower ages.
How to use this calculator
- Enter the Number of Borrowers in the group (minimum 10).
- Enter the group's Average Age in years.
- Enter the Average Loan Amount per Borrower - the starting loan/Sum Assured amount.
- Enter the Loan Tenure in years.
- Enter the Loan Interest Rate (% p.a., reducing balance) used to amortize the loan.
- Choose the Occupation Risk Category - Standard or Hazardous.
- Choose the Premium Payment Option - Single Premium or Regular Premium (Yearly).
Worked example
A housing finance company covers 200 borrowers, average age 38, with an average loan of ₹15,00,000 over a 15-year tenure at 9% interest, Standard occupation, and Single Premium. The calculator amortizes each borrower's loan year by year, prices the declining Sum Assured at each year's mortality rate, and sums those costs into a single premium per borrower - along with the total premium for the whole group and a year-wise schedule showing how the outstanding balance and cover shrink over the loan term.
Disclaimer
This calculator is an independent estimation tool and is not affiliated with or endorsed by ICICI Prudential Life Insurance Company Limited. Actual underwriting, mortality rates, and premiums for ICICI Pru Group Loan Secure are determined by the insurer based on the lender's and borrower group's risk profile and can differ materially from the figures shown here. Always refer to the official policy document and Benefit Illustration before making a decision.