ICICI Pru Signature Secure Calculator

ICICI Pru Signature Secure Calculator

What this calculator does

ICICI Pru Signature Secure (UIN: 105L210V01) is a pure protection term insurance plan: if you pass away during the Policy Term, your family receives a death benefit. Two choices make it different from a plain term plan:

• Cover Option - Level Cover keeps the Sum Assured fixed for the whole term, or Increasing Cover grows the death benefit by 5% every year (compounding), up to a cap of 2x the original Sum Assured, at the same premium structure - useful if you want your family's protection to keep pace with rising costs of living.
• Payout Option - choose how the death benefit is paid to your family: as a single Lump Sum, spread out as Monthly Income over 10 years, or split as Lump Sum + Monthly Income (half immediately, half as a 10-year income stream).

This calculator gives you an indicative estimate of:

• whether your chosen Sum Assured is adequate for your Annual Income, using an income-multiple guideline that reduces as you get older
• the premium for your chosen Sum Assured, Policy Term, Cover Option, Premium Paying Option, and payment mode - factoring in age, gender, and smoking/tobacco habit
• the payout breakdown your family would actually receive under your chosen Payout Option
• the added cost of two optional riders - a Critical Illness Rider and an Accidental Death Benefit Rider
• a year-by-year schedule of premiums paid to date and the death benefit payable in each shown policy year (which grows over time if you picked Increasing Cover)

Formula Used

Eligibility. Entry age must be between 18 and 65 years, the Policy Term between 10 and 40 years, and cover must end by age 100:

$$EntryAge + PolicyTerm \le 100$$

Recommended cover (income adequacy). The recommended Sum Assured is a multiple of Annual Income that reduces with age, since fewer working years remain to replace as you get older:

$$Multiple(age) = \begin{cases} 20 & age \le 30 \\ 16 & 30 < age \le 40 \\ 12 & 40 < age \le 50 \\ 6 & age > 50 \end{cases} \qquad RecommendedSumAssured = AnnualIncome \times Multiple(age)$$

If your chosen Sum Assured is below this, the calculator flags the policy as under-insured for your income.

Base mortality rate. The illustrative tabular annual rate (₹ per ₹1,000 Sum Assured) rises with age at entry and, more gently, with the length of the Policy Term:

$$BaseRate(age, term) = 0.38 + age \times 0.045 + term \times 0.008$$

Loadings and rebates. A smoker/tobacco-user loading and a female rebate are applied multiplicatively, and a High Sum Assured Rebate (per ₹1,000) is subtracted for larger policies:

$$Rate = BaseRate \times SmokerFactor \times GenderFactor - Rebate(SumAssured)$$

Increasing Cover loading. If you choose Increasing Cover, the level annual premium carries an additional loading, since the insurer's average exposure over the term is higher than a flat Sum Assured:

$$Rate_{increasing} = Rate \times 1.35$$

Cover at claim. Under Level Cover the death benefit stays at the original Sum Assured throughout. Under Increasing Cover, the cover in policy year (y) is:

$$Cover(y) = \min\big(SumAssured \times 1.05^{\,y-1},\ SumAssured \times 2\big)$$

Base premium.

$$AnnualBasePremium = \frac{SumAssured}{1000} \times Rate$$

Premium Paying Option. Regular Pay spreads the premium across the full Policy Term. Limited Pay (10/15/20 years) compresses the same total cost into fewer years, with a modest discount for collecting premiums earlier:

$$TotalBasePremium = AnnualBasePremium \times PolicyTerm \times 0.93 \ \text{(Limited Pay only)}$$

Riders. The Critical Illness Rider cover is capped at 25% of the base Sum Assured (max ₹40 lakh); the Accidental Death Benefit Rider cover equals the base Sum Assured (max ₹1 crore):

$$CIRate(age) = 0.32 + age \times 0.011 \ \text{(₹ per ₹1,000 of CI cover)} \qquad ADBRate = 0.40 \ \text{(₹ per ₹1,000 of ADB cover)}$$

Payment mode. Yearly premium is split into half-yearly, quarterly, or monthly installments using standard loading factors (1.00 / 0.51 / 0.26 / 0.0875) that reflect the extra cost of collecting premiums more frequently.

Payout breakdown. For a death benefit (D) at the year of claim:

$$LumpSum = D \qquad MonthlyIncome = \frac{D}{100} \ \text{per month, for 10 years} \qquad LumpSum{+}Income: \ \frac{D}{2} \ \text{immediately, plus} \ \frac{D}{200} \ \text{per month, for 10 years}$$

How to use it

1. Enter your Age at Entry, Gender, and Smoking/Tobacco Habit.
2. Enter your Annual Income so the calculator can check if your cover is adequate.
3. Choose your Policy Term and desired Sum Assured.
4. Pick a Cover Option (Level or Increasing) and a Payout Option (Lump Sum, Monthly Income, or a mix of both).
5. Choose a Premium Paying Option and Payment Mode.
6. Optionally add the Critical Illness and/or Accidental Death Benefit riders.
7. Submit to see your premium, payout breakdown, rider costs, and the year-by-year benefit schedule.

Worked example

A 32-year-old non-smoking male, Annual Income ₹15,00,000, wants a Sum Assured of ₹1,00,00,000 over a 30-year Policy Term, Regular Pay, yearly mode, with Increasing Cover and the Lump Sum + Monthly Income payout, plus the Critical Illness Rider.

• Recommended Sum Assured: ₹15,00,000 × 20 = ₹3,00,00,000 → the chosen ₹1 crore is below this guideline, so the calculator flags the cover as potentially inadequate.
• Base rate: (0.38 + 32 \times 0.045 + 30 \times 0.008 = 2.06) per ₹1,000, loaded by 1.35x for Increasing Cover.
• Annual base premium works out from this rate applied to the ₹1,00,00,000 Sum Assured, plus the Critical Illness Rider premium on top.
• At claim in, say, year 15, the cover has grown toward the 2x cap; the payout is split as an immediate lump sum plus a 10-year monthly income stream on the remainder.

This calculator provides indicative estimates for informational purposes only, based on a simplified illustrative rate table. Actual premiums are underwritten by ICICI Prudential Life Insurance based on medical, financial, and other factors - refer to the official policy document and a licensed advisor before purchasing.