ICICI Pru Non-Linked Waiver of Premium Rider Calculator

ICICI Pru Non-Linked Waiver of Premium Rider Calculator

ICICI Pru Non-Linked Waiver of Premium Rider (UIN: 105B044V02) is a non-linked, non-participating rider that can be attached to an eligible ICICI Prudential traditional (non-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 itself continues in full force as if every remaining premium had actually been paid. This calculator gives you an illustrative estimate of the level annual rider premium 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 on a traditional ICICI Pru base plan who wants to make sure that a disability - one serious enough to stop them earning, not just an accident - doesn't also cost them their life insurance cover because they can no longer afford the premiums. Because it is a non-linked rider, its cost is not deducted from any fund value; instead, a separate, level annual premium is payable along with the base plan's own premium for as long as the rider cover continues.

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 waived. Nothing is paid to you directly - the benefit is that your base policy keeps running without you having to keep paying for 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 premium

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 cover, 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.

$$\text{Average Waiver Amount} = \text{Annual Base Premium} \times \frac{\text{Rider Term} + 1}{2}$$ $$\text{Level Annual Rider Premium} = \frac{\text{Average Waiver Amount}}{1000} \times \text{Rate per 1{,}000} \times \text{Occupation Loading} \times (1 + \text{GST Rate})$$

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 on a traditional ICICI Pru base plan and opts for this rider for a 20-year Rider Term, matching the remaining premium paying term of the base policy. The calculator computes a single level annual rider premium (with 18% GST) that stays the same every year, 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 Base Policy Premium you want protected.
3. Select your Occupation Class.
4. Submit to see the level annual rider premium (with GST), the total rider premium 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 premiums depend on the insurer's underwriting, medical and occupation risk assessment, and applicable taxes, 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.