ICICI Pru Shubh Raksha Credit Calculator

ICICI Pru Shubh Raksha Credit Calculator

ICICI Pru Shubh Raksha Credit (UIN: 105N159V03) is a non-linked, non-participating, individual, pure risk premium life insurance plan designed to protect a loan or other credit facility. If the life assured passes away during the policy term, the sum assured pay-out can be used by the nominee to close the outstanding loan, so the family is not left carrying the debt. This calculator gives you an illustrative estimate of the premium and the cover schedule over your loan tenure - it does not replace the insurer's official benefit illustration.

Who this plan is for

Anyone taking a home loan, a business loan, or any other large credit facility can use a credit life plan like Shubh Raksha Credit to make sure the loan doesn't become a burden on their family if something happens to them. Because it is a pure protection (term-style) plan with no maturity benefit, premiums are typically much lower than an equivalent savings-linked policy for the same sum assured.

Cover Type: Level vs Reducing

• Level Sum Assured: the cover stays equal to the original loan amount for the entire tenure, regardless of how much of the loan has been repaid.
• Reducing Sum Assured: the cover reduces every year in line with the loan's outstanding balance (calculated the same way a bank calculates a reducing-balance EMI loan), so it always tracks what is actually still owed. This option is usually cheaper since the average cover over the tenure is lower.

The outstanding balance on a reducing-balance loan of principal P, annual interest rate r, and total tenure of n months, after k months have elapsed, is:

$$B(k) = P \times \frac{(1+i)^n - (1+i)^k}{(1+i)^n - 1}, \quad i = \frac{r}{12 \times 100}$$

Premium Paying Options

• Single Pay: one lump-sum premium paid at the start of the policy.
• Limited Pay: premiums paid every year for a shorter period than the full loan tenure (5 or 10 years less), after which the cover continues with no further premium due.
• Regular Pay: premiums paid every year for the full loan tenure.

Within any of the recurring options you can also choose how often you pay - yearly, half-yearly, quarterly, or monthly - which changes the size of each instalment (more frequent instalments carry a small loading).

How the illustrative premium is estimated

The calculator applies an illustrative tabular mortality rate (₹ per ₹1,000 of sum assured) that increases with age and policy term, adjusted for gender and smoking habit, with a rebate for high sum assured. For the Reducing option, the rate is applied to the average sum assured across the tenure rather than the full loan amount:

$$\text{Annual Premium} = \frac{\text{Average Sum Assured}}{1000} \times \text{Rate per 1{,}000}$$

A Single Premium is estimated as a discounted lump sum equivalent of the total regular-pay premiums that would otherwise be paid over the full tenure.

Worked example

A 32-year-old non-smoking male takes a ₹50,00,000 home loan for 20 years at 8.5% interest, and chooses Reducing cover with a 10-year Limited Pay option, paid yearly. The calculator estimates the average outstanding balance over the tenure, applies the tabular rate for a 32-year-old over a 10-year premium paying term, and shows the resulting yearly premium along with a year-by-year schedule of the loan balance and cover amount.

How to use this calculator

1. Enter your age, gender, and smoking/tobacco habit.
2. Enter the loan amount, tenure, and interest rate.
3. Choose Level or Reducing cover, and a premium paying option and payment mode.
4. Submit to see the premium payable, the total premium over the paying term, and the yearly loan balance / cover schedule.

This tool is for illustration only. Actual premiums depend on medical underwriting, the insurer's current rate card, and applicable taxes - always confirm the exact figure with ICICI Prudential Life Insurance or a licensed advisor before buying a policy.