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ICICI Pru Guaranteed Income For Tomorrow Calculator

ICICI Pru Guaranteed Income For Tomorrow (GIFT) is a non-linked, non-participating individual life insurance savings plan. You pay premiums for a chosen Premium Payment Term, and in return receive a Guaranteed Income every year for a chosen Income Period - fixed at policy inception and unaffected by market performance, unlike a ULIP. This calculator projects that guaranteed income, the total payout over the Income Period, the Sum Assured, and the Death Benefit payable to your nominee.

The Two Headline Choices

Income Option decides when the payouts begin:

• Early Income - guaranteed income starts from Policy Year 2, while you may still be paying premiums, giving you cash flow sooner.
• Regular Income - guaranteed income starts only after the Premium Payment Term ends, once you're done paying premiums.

Income Benefit Type decides how the payout behaves over time:

• Level Income - the same guaranteed amount every year of the Income Period.
• Increasing Income - a smaller amount in the first year, growing by 5% p.a. (simple) every subsequent year of the Income Period, to help keep pace with rising costs.

How the Guaranteed Income Is Calculated

$$\text{Level Annual Income} = \text{Annual Premium} \times \text{Income Rate}(PPT) \times \text{Income Option Factor}$$

The Income Rate rises with a longer Premium Payment Term (PPT) - paying premiums for longer builds a larger guaranteed income - and Early Income applies a discount factor relative to Regular Income, since payouts start sooner and run partly alongside your premium payments.

For Increasing Income, the first year's payout starts lower and then grows:

$$\text{Income in Year } k = \text{First Year Income} \times \big(1 + 0.05 \times (k - 1)\big)$$

where k is the year's position within the Income Period (k = 1 in the first income year).

When Income Starts and Ends

$$\text{Income Start Year} = \begin{cases} 2, & \text{Early Income} \\ PPT + 1, & \text{Regular Income} \end{cases}$$ $$\text{Income End Year} = \text{Income Start Year} + \text{Income Period} - 1$$

The overall Policy Term runs until the later of the Premium Payment Term or the Income End Year.

Sum Assured and Death Benefit

The Sum Assured follows the common IRDAI-style minimum norm for traditional plans, based on your Age at Entry:

$$\text{Sum Assured} = \max\Big(\text{Age} < 45 \; ? \; 10\times AP : 7\times AP,\quad \text{Age} < 45 \; ? \; 0.5 : 0.25 \; \times PT \times AP\Big)$$

Where AP is the Annual Premium and PT is the Policy Term. If you pass away during the policy term, your nominee receives the Death Benefit - the higher of the Sum Assured or 105% of premiums paid till date - over and above any income installments already due.

How to Use This Calculator

1. Enter your Age at Entry.
2. Enter the Annual Premium you plan to pay.
3. Choose your Premium Payment Term - 5, 6, 7, 8, 10, or 12 years.
4. Choose your Income Option - Early Income or Regular Income.
5. Choose your Income Benefit Type - Level or Increasing.
6. Choose your Income Period - how many years the guaranteed income is paid for.
7. Choose a Payment Mode for how the income installment is split.
8. Submit to see your Policy Term, Sum Assured, total premiums paid, the first year's guaranteed income, the total guaranteed income over the Income Period, and a year-by-year payout and death benefit schedule.

Worked Example

A 35-year-old with an Annual Premium of ₹1,00,000, a 10-year Premium Payment Term, Regular Income, Level Income Benefit, and a 15-year Income Period:

• Sum Assured: ₹12,50,000 (0.5 x Policy Term x Annual Premium = 0.5 x 25 x ₹1,00,000, which exceeds 10x Annual Premium since entry age is under 45)
• Total Premiums Paid: ₹10,00,000 (₹1,00,000 x 10 years)
• Guaranteed Income: ₹80,000 every year, from Policy Year 11 through Policy Year 25
• Total Guaranteed Income: ₹12,00,000 over the 15-year Income Period
• Policy Term: 25 years

Important Notes

• This is a guaranteed, non-linked plan - the income amounts are fixed at policy inception and do not depend on market or fund performance, unlike a ULIP.
• Early Income pays a lower rate than Regular Income for a comparable Premium Payment Term, since payouts begin sooner and may overlap with your premium-paying years.
• The figures on this page are illustrative. They are modeled on the general shape of Indian guaranteed-income traditional plans and are not a reproduction of ICICI Prudential Life's official Benefit Illustration for UIN 105N182V13.
• 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 Guaranteed Income For Tomorrow policy document and Benefit Illustration before making any purchase decision.