ICICI Pru Linked Waiver of Premium Rider Calculator

ICICI Pru Linked Waiver of Premium Rider Calculator

ICICI Pru Linked Waiver of Premium Rider (UIN: 105A045V02) is a unit-linked, non-participating rider that can be attached to an eligible ICICI Prudential ULIP base plan. If the life covered under the rider suffers a Total and Permanent Disability due to accident or sickness during the rider term, all future premiums due on the base policy (and any other attached riders) from that point onward are waived - the base policy continues to receive its full premium allocation, into the fund, exactly as if you had kept paying it yourself. This calculator gives you an illustrative estimate of the yearly rider charge and the reducing amount of future premium it protects - it does not replace the insurer's official rider terms, Customer Information Sheet or Benefit Illustration.

Who this rider is for

Anyone paying a meaningful annual premium into an ICICI Pru ULIP who wants to make sure that a disability - one serious enough to stop them earning, not just an accident - doesn't also stall the fund they're building for a goal like retirement or a child's education. Because it is a linked rider, it has no separate premium of its own; instead, its cost is recovered every year by cancelling units from the policy's fund value, the same way mortality and other policy charges are deducted in a ULIP.

What the rider pays

• Waiver of future premiums: on a valid Total and Permanent Disability claim, every base policy premium (and premiums on any other attached riders) that would otherwise fall due after the claim is admitted, right up to the end of the Rider Term, is credited into the fund on your behalf. Nothing is paid to you directly - the benefit is that your fund keeps growing without you having to keep funding it.
• Reducing amount at risk: because only the remaining premiums are ever at stake, the maximum amount the rider is protecting shrinks by one annual premium every year the policy runs claim-free - a disability in year 1 waives many more years of premium than the same disability in year 18 of a 20-year Rider Term.

What drives the rider charge

Unlike an accident-only rider, this rider is priced on the risk of disability from any cause - accident or illness - so, like a mortality-based charge, the rate rises with age at entry. Occupation also matters: physically demanding or hazardous occupations carry a higher chance of a disabling injury, so the insurer applies an occupation loading on top of the age-based rate, same as it does for other rider types. Because the charge is recovered by cancelling fund units rather than billed as a separate premium, it is not grossed up with GST the way a non-linked rider premium is.

$$\text{Average Waiver Amount} = \text{Annual ULIP Premium} \times \frac{\text{Rider Term} + 1}{2}$$ $$\text{Yearly Rider Charge} = \frac{\text{Average Waiver Amount}}{1000} \times \text{Rate per 1{,}000} \times \text{Occupation Loading}$$

The average waiver amount (rather than the full, undiscounted total) is used because the amount actually at risk declines every year as premiums are paid without a claim - pricing on the full total across every year of the term would overcharge for a benefit that, on average, covers only about half that much.

Worked example

A 35-year-old (Class 1 occupation) pays a ₹40,000 annual premium into an ICICI Pru ULIP and opts for this rider for a 20-year Rider Term, matching the remaining premium paying term of the base policy. The calculator computes the yearly rider charge that will be deducted from the fund by cancelling units, and shows how the maximum premium amount protected shrinks from ₹8,00,000 in year 1 down to ₹40,000 in the rider's final year, so you can see exactly how much of your future premium outlay stays protected at any point during the term.

How to use this calculator

1. Enter your age at entry and the Rider Term (in years) - normally the remaining premium paying term of the base policy.
2. Enter the Annual ULIP Premium you want protected.
3. Select your Occupation Class.
4. Submit to see the yearly rider charge, the total rider charge over the term, the maximum premium amount protected, and a year-wise schedule of how much future premium remains waivable in each policy year.

This tool is for illustration only. Actual rider charges depend on the insurer's underwriting, medical and occupation risk assessment, applicable taxes and prevailing fund charges, and can differ materially from this estimate - always confirm the exact figure with ICICI Prudential Life Insurance or your policy document before buying this rider.