app.icici-pru-life-time-classic-calculator.title

ICICI Pru Life Time Classic Calculator

What this calculator does

ICICI Pru Life Time Classic (UIN: 105L155V10) is a unit-linked, non-participating, individual life insurance plan. Unlike a traditional savings plan, the premium you pay (after a Premium Allocation Charge is deducted) buys units in a market-linked fund, so the Fund Value grows or falls with market performance rather than at a fixed guaranteed rate. A Fund Management Charge is embedded in the fund's growth rate, and a Policy Administration Charge plus a mortality Cost of Insurance (charged on the difference between your Sum Assured and the current Fund Value) are deducted from the fund every year. To reward staying invested, the plan credits a Loyalty Addition to the fund from policy year 6 onward, and a larger Wealth Booster from year 10 (and every 5th year after that).

Four choices shape the projection:

• Age at Entry - determines your Sum Assured multiple and mortality charges.
• Annualized Premium - the yearly premium amount you commit to paying.
• Premium Payment Term (PPT) - how many years you pay premiums (5, 7, or 10 years).
• Policy Term - the total number of years the policy runs before maturity (10 to 30 years), which must be at least as long as the PPT.
• Expected Fund Growth Rate - the gross annual return your chosen fund is assumed to earn, using the two illustration rates insurers are required to show (4% conservative, 8% optimistic).

This calculator gives you an indicative projection of:

• the Sum Assured, fixed at inception as a multiple of your Annualized Premium
• the total premium payable over your Premium Payment Term
• the total charges (allocation, mortality, and administration) deducted over the Policy Term
• the total Loyalty Additions and Wealth Boosters credited to the fund
• the projected Fund Value at maturity
• a year-by-year schedule showing the premium paid, projected Fund Value, and death benefit payable in that policy year

Formula Used

Eligibility. Entry age must be between 8 and 60 years, the Policy Term must be at least as long as the Premium Payment Term, and the policy must mature by age 75:

$$EntryAge + PolicyTerm \le 75 \qquad \text{and} \qquad PolicyTerm \ge PPT$$

Sum Assured. A multiple of the Annualized Premium fixed at inception - a lower multiple applies from age 45 onward, reflecting the higher mortality cost of covering older lives:

$$SumAssured = AnnualizedPremium \times \begin{cases} 10 & EntryAge < 45 \\ 7 & EntryAge \ge 45 \end{cases}$$

Premium Allocation Charge. A percentage of each year's premium is deducted before the rest is invested into units - higher in the first year, tapering down after:

$$AllocationRate(year) = \begin{cases} 6\% & year = 1 \\ 4\% & 2 \le year \le 5 \\ 2\% & year > 5 \end{cases}$$

Fund growth, net of Fund Management Charge. The Fund Management Charge (1.35% p.a.) is deducted from the gross Expected Fund Growth Rate you select before it is applied to the Fund Value:

$$NetGrowthRate = ExpectedFundGrowthRate - 1.35\%$$

Mortality charge (Cost of Insurance). Charged each year on the Sum at Risk (the shortfall between Sum Assured and current Fund Value), at an illustrative rate per ₹1,000 of Sum at Risk that rises with age:

$$SumAtRisk(year) = \max(0,\; SumAssured - FundValue(year))$$ $$MortalityRatePer1000(age) = \begin{cases} 1.0 & age \le 25 \\ 1.5 & 26 \text{-} 35 \\ 2.5 & 36 \text{-} 45 \\ 5.0 & 46 \text{-} 55 \\ 10.0 & 56 \text{-} 65 \\ 18.0 & age > 65 \end{cases}$$

Policy Administration Charge. Starts at ₹720/year, escalating 5% annually, capped at ₹6,000/year:

$$AdminCharge(year) = \min\left(720 \times 1.05^{\,year-1},\; 6000\right)$$

Loyalty Addition and Wealth Booster. From policy year 6 onward, a Loyalty Addition equal to 0.20% of the Fund Value is credited every year. From year 10 (and every 5th year after), an additional Wealth Booster equal to 0.50% of the average Fund Value over the preceding 5 years is also credited:

$$LoyaltyAddition(year) = 0.20\% \times FundValue(year), \quad year \ge 6$$ $$WealthBooster(year) = 0.50\% \times \overline{FundValue}_{\,year-5 \ldots year-1}, \quad year \ge 10,\ year \bmod 5 = 0$$

Fund Value each policy year. Net premium is added, mortality and administration charges are deducted, the balance grows at the net growth rate, and then any Loyalty Addition or Wealth Booster for that year is credited:

$$FundValue(year) = \Big[FundValue(year-1) + NetPremium(year) - MortalityCharge(year) - AdminCharge(year)\Big] \times (1 + NetGrowthRate) + LoyaltyAddition(year) + WealthBooster(year)$$

Death Benefit. Payable any time during the Policy Term, this is the higher of the Sum Assured, the current Fund Value, or 105% of premiums paid to date:

$$DeathBenefit(year) = \max\left(SumAssured,\; FundValue(year),\; 1.05 \times PremiumsPaidToDate(year)\right)$$

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. Select your Expected Fund Growth Rate - 4% for a conservative estimate, 8% for an optimistic one.
4. Submit to see your Sum Assured, total charges, loyalty additions, projected Fund Value at maturity, and the year-by-year schedule.

Worked Example

A 35-year-old chooses an Annualized Premium of ₹1,00,000, a 10-year Premium Payment Term, a 20-year Policy Term, and the 8% optimistic growth rate.

• Sum Assured (age below 45, 10x multiple): 10 × ₹1,00,000 = ₹10,00,000
• Year 1: ₹1,00,000 premium less a 6% Allocation Charge (₹6,000) invests ₹94,000; after mortality and admin charges and net growth, the Fund Value ends the year around ₹98,000
• Year 10 (last premium year, Loyalty Additions running, first Wealth Booster credited): Fund Value grows to roughly ₹13.9 lakh, comfortably above the ₹10 lakh Sum Assured
• Year 20 (maturity, no more premiums since year 10, growth plus Loyalty Additions and Wealth Boosters compounding): projected Fund Value around ₹27 lakh
• Total premium paid: ₹1,00,000 × 10 = ₹10,00,000; total charges deducted over the 20 years come to roughly ₹65,000

This is an illustrative model of the plan's charge structure, not a reproduction of ICICI Prudential's official rates or fund performance - actual returns depend on the fund(s) you choose and market conditions, so always refer to the insurer's Benefit Illustration before buying a policy.