ICICI Pru Group Nischit Aay Yojna Calculator

ICICI Pru Group Nischit Aay Yojna Calculator

ICICI Pru Group Nischit Aay Yojna (UIN: 105N203V02) is a non-linked, non-participating group term life insurance plan under which the group can choose how the death benefit reaches a member's nominee - either as a single lump sum, or converted into a guaranteed level income paid out over a fixed number of years ("Nischit Aay" literally means "guaranteed income" in Hindi). This calculator gives you an independent, illustrative estimate of the group premium and, if the income option is chosen, the size of that guaranteed income - it is not affiliated with or endorsed by ICICI Prudential Life Insurance Company Limited, and actual figures are always set by the insurer after underwriting the specific group.

Why convert a lump sum into income

A large lump sum paid to a nominee immediately after a member's death is not always the most useful form of protection, especially for a family that depends on the member's regular earnings. Nischit Aay Yojna lets the group choose to have the Sum Assured paid out instead as a predictable, level yearly amount for a fixed period - functioning much like the member's income would have, rather than a single windfall the family must manage and invest themselves.

How the premium is estimated

For the average age and occupation risk category of the group, this calculator applies an illustrative age-banded mortality rate per ₹1,000 of Sum Assured:

$$\text{Annual Premium per Member} = \frac{\text{Sum Assured per Member}}{1000} \times \text{Rate per Mille}$$

The rate is loaded higher for a Hazardous occupation category than Standard, and discounted for larger groups, since risk is pooled across more members with less adverse selection than an individually underwritten policy.

How the guaranteed income is estimated

If Guaranteed Income Payout is selected, the Sum Assured is treated as a present value that must fund a level annual income for the chosen payout period, discounted at the plan's assumed income rate:

$$\text{Annual Income} = \frac{\text{Sum Assured} \times r}{1 - (1+r)^{-n}}$$

where r is the assumed annual income rate and n is the income payout period in years. The calculator also shows a year-wise schedule of how the underlying balance grows with interest and shrinks as each year's income is paid out, ending at zero at the end of the payout period. If Lump Sum Payout is selected instead, the full Sum Assured is shown as a single payment in year one.

How to use this calculator

1. Enter the Number of Members in the group (minimum 10).
2. Enter the group's Average Age in years.
3. Enter the Sum Assured per Member - the death benefit amount before any income conversion.
4. Enter the Policy Term in years.
5. Choose the Occupation Risk Category - Standard or Hazardous.
6. Choose the Death Benefit Payout Option - Lump Sum or Guaranteed Income.
7. If Guaranteed Income is chosen, enter the Income Payout Period and the Assumed Income Rate used to size the yearly instalment.

Worked example

A cooperative bank covers 500 members, average age 40, Sum Assured ₹5,00,000 per member, Standard occupation, with the Guaranteed Income option over a 10-year payout period at an assumed 6% income rate. The calculator prices the annual premium per member and the total group premium, then converts the ₹5,00,000 Sum Assured into a level guaranteed annual income - shown alongside a year-wise schedule of the payout balance.

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, premiums, and income rates for ICICI Pru Group Nischit Aay Yojna are determined by the insurer based on the 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.