ICICI Pru Smart Goal Assure Calculator

ICICI Pru Smart Goal Assure Calculator

What this calculator does

ICICI Pru Smart Goal Assure (UIN: 105L199V01) is a non-linked, non-participating, individual savings life insurance plan built around a single future life goal - a child's education, a wedding, a retirement corpus, or any other milestone you're saving towards. You pay premiums for a chosen Premium Payment Term (PPT), and the policy matures at the end of a chosen Policy Term that lines up with when you'll need the money for your goal.

Two guarantees anchor the plan:

• Guaranteed Additions - added every policy year (not just while you're paying premiums) as a percentage of your Annualized Premium, which grow the pot working towards your goal throughout the Policy Term.
• Guaranteed Maturity Benefit - your total premiums paid plus all accumulated Guaranteed Additions, paid as a lump sum on the goal date (the end of the Policy Term).

If the life insured passes away during the Policy Term, a lump-sum Death Benefit is paid to the nominee instead, so the goal is protected even if you're not around to keep paying premiums.

This calculator gives you an indicative estimate of:

• the premium payable per instalment and in total, based on your chosen payment mode
• the Guaranteed Additions accumulated over the Policy Term
• the Guaranteed Maturity Benefit payable on your goal date
• the Death Benefit payable to your family, which rises over time as premiums accrue
• a year-by-year schedule showing premiums paid to date, Guaranteed Additions accrued, and the benefit payable for that policy year

Formula Used

Eligibility. Entry age must be between 18 and 55 years, the Policy Term must be at least as long as the Premium Payment Term, and the policy must mature by age 75:

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

Premium payable. The Annualized Premium you enter is loaded slightly for more frequent payment modes (reflecting the insurer's cost of collecting premiums more often):

$$InstalmentPremium = AnnualizedPremium \times ModeFactor$$ $$TotalPremiumPayable = InstalmentPremium \times InstalmentsPerYear \times PPT$$

Guaranteed Addition rate. The illustrative annual addition rate (as a fraction of Annualized Premium) rises slightly with a longer Premium Payment Term, since a longer PPT means a larger total premium base funding the guarantee:

$$GARate = 0.03 + 0.001 \times (PPT - 5)$$

Guaranteed Additions accrue every policy year of the Policy Term, whether or not you are still paying premiums:

$$GAAccruedToDate(year) = GARate \times AnnualizedPremium \times year$$ $$TotalGuaranteedAdditions = GARate \times AnnualizedPremium \times PolicyTerm$$

Guaranteed Maturity Benefit. Total premiums paid over the PPT, plus all accumulated Guaranteed Additions, paid on the goal date at the end of the Policy Term:

$$MaturityBenefit = (AnnualizedPremium \times PPT) + TotalGuaranteedAdditions$$

Death Benefit. The Sum Assured is 11 times the Annualized Premium; if this is lower than 105% of premiums paid to date, the higher amount is paid (a standard guaranteed floor used across traditional Indian savings plans):

$$DeathBenefit(year) = \max\left(11 \times AnnualizedPremium,\; 1.05 \times PremiumsPaidToDate(year)\right)$$

How to Use

1. Optionally name Your Life Goal (e.g. "Child's Education") so the results are easy to relate to.
2. Enter your Age at Entry and the Annualized Premium you plan to pay each year.
3. Choose your Premium Payment Term and Policy Term (the Policy Term must be equal to or longer than the Premium Payment Term, and should line up with when you'll need the money for your goal).
4. Select your Premium Payment Mode (Yearly, Half-Yearly, Quarterly, or Monthly).
5. Submit to see your premium, Guaranteed Additions, maturity benefit, and death cover.

Worked Example

A 30-year-old saving for their child's education chooses an Annualized Premium of ₹1,00,000, a 10-year Premium Payment Term, a 20-year Policy Term, paying yearly.

• Guaranteed Addition rate: 0.03 + 0.001 × (10 - 5) = 0.035 (3.5%)
• Total premiums paid (over 10 years): ₹1,00,000 × 10 = ₹10,00,000
• Total Guaranteed Additions (over 20 years): 0.035 × ₹1,00,000 × 20 = ₹70,000
• Guaranteed Maturity Benefit: ₹10,00,000 + ₹70,000 = ₹10,70,000, paid at the end of Year 20 when the goal arrives
• Death Benefit (Year 1): max(11 × ₹1,00,000, 1.05 × ₹1,00,000) = ₹11,00,000

This is an illustrative model of the plan's benefit structure, not a reproduction of ICICI Prudential's official rates - always refer to the insurer's benefit illustration before buying a policy.