Is the Digit Icon Guaranteed Savings Plan – Income Variant truly a reliable path to long-term financial security, or is it simply another polished product with hidden limitations?
Can the Digit Icon Income Variant genuinely deliver the guaranteed benefits it promises, or should smart investors look beyond the marketing claims?
Will the Digit Icon Guaranteed Savings Plan safeguard your future income the way you expect, or does it fall short when compared to more flexible investment options?
In this review, we break down the plan’s features, along with its key benefits and limitations, to help you make an informed decision.
Table of Contents
What is the Digit Icon Guaranteed Savings Plan – Income?
What are the features of the Digit Icon Guaranteed Savings Plan – Income?
What are the plan variants in the Digit Icon Guaranteed Savings Plan – Income?
What are the benefits of the Digit Icon Guaranteed Savings Plan – Income?
Grace Period, Discontinuance and Revival of the Digit Icon Guaranteed Savings Plan – Income
Free Look Period for the Digit Icon Guaranteed Savings Plan – Income
Surrendering the Digit Icon Guaranteed Savings Plan – Income
What are the advantages of the Digit Icon Guaranteed Savings Plan – Income?
What are the disadvantages of the Digit Icon Guaranteed Savings Plan – Income?
Research Methodology of Digit Icon Guaranteed Savings Plan – Income
Benefit Illustration – IRR Analysis of Digit ICON Guaranteed Savings Plan – Income
Digit ICON Guaranteed Savings Plan – Income Vs. Other Investments
Digit ICON Guaranteed Savings Plan – Income Vs. Pure-term + Equity Mutual Fund
Final Verdict on Digit ICON Guaranteed Savings Plan – Income
What is the Digit Icon Guaranteed Savings Plan – Income?
Digit Icon Guaranteed Savings Plan is a non-linked, non-participating individual life insurance savings plan. It provides both life insurance protection and guaranteed income or maturity benefits, depending on the variant chosen by the policyholder.
What are the features of the Digit Icon Guaranteed Savings Plan – Income?
- Life insurance cover to secure your family’s financial future
- Built-in additional death benefit in case of accidental death
- Enhanced protection through features like Policy Continuance Benefit and Family Income Benefit
- Flexibility to choose when you want the guaranteed income to start and how long it should continue
- Choice to receive the guaranteed income monthly or annually
- Option to accumulate the guaranteed income and withdraw it later—either partially or fully—based on your needs
- Freedom to select a guaranteed income that remains constant or increases over the payout period
What are the plan variants in the Digit Icon Guaranteed Savings Plan – Income?
There are four variants under the Digit Icon Guaranteed Savings plan.
- Lump-sum Benefit
- Income Benefit
- Income + Lumpsum Benefit
- Whole Life Benefit
This article focuses on the Income benefit variant.
What are the benefits of the Digit Icon Guaranteed Savings Plan – Income?
Death benefit
For Single Life (with only one Life Assured under the Policy), the Death Benefit payable shall be the highest of the following:
- Sum Assured on Death plus accrued special additions, if any, OR
- 105% of Total Premiums Paid as on the date of death of the Life Assured, OR
- Surrender Value applicable as on the date of death of the Life Assured.
For Joint Life (with two lives being assured under the Policy)
Under Joint Life, two lives will be covered under one Policy. Joint Life Option shall be available for the Single Premium Policy only.
In case of the first death during the Policy Term, the Death Benefit equal to 1.25 times of Single Premium shall be payable. The Policy shall continue till the occurrence of the second death or till Policy Maturity Date, whichever is earlier.
In case of second death during the Policy Term, the Death Benefit equal to 10 times of Single Premium plus accrued Special Additions, if any, shall be payable.
Accidental Death Benefit is an in-built feature
Survival benefit
A regular stream of Guaranteed Income (GI) will be paid during the chosen Income Period. The following options will be available to you at inception under the Income Benefit variant:
Maturity benefit
Maturity benefit will not be applicable under this variant
Grace Period, Discontinuance and Revival of the Digit Icon Guaranteed Savings Plan – Income
Grace Period
A Grace Period of fifteen (15) days from the due date of the first unpaid Premium for Policies with a monthly Premium payment frequency and thirty (30) days from the due date of the first unpaid Premium for all other available Premium payment frequencies will be allowed for the payment of each due Premium instalment.
Discontinuance
Lapse: If at least one full year’s Premiums have not been paid, the Policy will lapse on the expiry of the Grace Period until the Policy is revived for full Benefits within the Revival Period.
Reduced paid-up: If at least one full year’s Premiums have been paid and if any subsequent Premium which is due has not been paid by the end of the Grace Period, the Policy will acquire reduced paid-up status, and the Policyholder / Claimant will be eligible for Reduced Paid-up Benefit.
Revival
If the policy is in lapsed or in reduced paid-up status, it may be revived for full Benefits before the Policy Maturity Date, but within five years from the due date for payment of the first unpaid Premium.
Free Look Period for the Digit Icon Guaranteed Savings Plan – Income
If you do not agree with the terms and conditions of the Policy, you have the option to request cancellation of the Policy by returning the original Policy Document (in case the physical copy of the Policy Document was sent to the Policyholder) along with a written request stating the reasons for objection within 30 days from the date of receipt of the Policy Document.
Surrendering the Digit Icon Guaranteed Savings Plan – Income
In case of Single Premium Policies, the Policy can be surrendered at any time after the Policy Commencement Date.
For Limited Pay and Regular Pay Policies, the Policy can be surrendered any time after completion of the first Policy Year, provided at least one full year’s Premiums have been paid.
The Surrender Value payable shall be the higher of Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV).
What are the advantages of the Digit Icon Guaranteed Savings Plan – Income?
- The Policy Continuance Benefit on death ensures your family continues to receive the benefits even in your absence
- If the policyholder passes away during the income benefit period, the Family Income Option ensures the income payouts continue to the nominee
- Policy Continuance Benefit also applies upon the diagnosis of a critical illness
- Additional advantages include Senior Citizen Health Benefits and Wellness Benefits
- Premiums paid and benefits received may be eligible for tax benefits as per prevailing tax laws
What are the disadvantages of the Digit Icon Guaranteed Savings Plan – Income?
- Although the Digit Icon Guaranteed Savings plan provides guaranteed benefits, the overall returns are on the lower side
- The sum assured may not be adequate to fully cover long-term financial goals
- Receiving income benefits interrupts compounding, which can limit wealth creation
- The survival benefit is unlikely to support large or big-ticket financial needs
Research Methodology of Digit Icon Guaranteed Savings Plan – Income
Under the Digit ICON Guaranteed Savings Plan – Income Variant, you receive Survival Benefits at fixed intervals. While these payouts are guaranteed, it is important to evaluate the actual returns before investing.
Calculating the Internal Rate of Return (IRR) offers a clearer picture. Let us consider the case study from the sales brochure.
Benefit Illustration – IRR Analysis of Digit ICON Guaranteed Savings Plan – Income
A 35-year-old male chooses the Income Variant and pays an annual premium of ₹1,00,000. The Premium Payment Term is 8 years, and the Income Payout Period is 12 years, with payouts received annually. This makes the total policy term 20 years.
| Male | 35 years |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 8 years |
| Annualised Premium | ₹ 1,00,000 |
The Survival Benefit begins at the end of the 9th policy year and continues until the end of the 20th year, during which he receives ₹1,04,745 every year.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,00,000 | 10,00,000 |
| 36 | 2 | -1,00,000 | 10,00,000 |
| 37 | 3 | -1,00,000 | 10,00,000 |
| 38 | 4 | -1,00,000 | 10,00,000 |
| 39 | 5 | -1,00,000 | 10,00,000 |
| 40 | 6 | -1,00,000 | 10,00,000 |
| 41 | 7 | -1,00,000 | 10,00,000 |
| 42 | 8 | -1,00,000 | 10,00,000 |
| 43 | 9 | 0 | 10,00,000 |
| 44 | 10 | 1,04,745 | 10,00,000 |
| 45 | 11 | 1,04,745 | 10,00,000 |
| 46 | 12 | 1,04,745 | 10,00,000 |
| 47 | 13 | 1,04,745 | 10,00,000 |
| 48 | 14 | 1,04,745 | 10,00,000 |
| 49 | 15 | 1,04,745 | 10,00,000 |
| 50 | 16 | 1,04,745 | 10,00,000 |
| 51 | 17 | 1,04,745 | 10,00,000 |
| 52 | 18 | 1,04,745 | 10,00,000 |
| 53 | 19 | 1,04,745 | 10,00,000 |
| 54 | 20 | 1,04,745 | 10,00,000 |
| 55 | 1,04,745 | ||
| IRR | 4.25% |
Based on these cash flows, the IRR works out to 4.25% as per the Digit Icon Guaranteed Savings Plan maturity calculator. Additionally, since the Survival Benefit is paid out regularly, it may likely be spent on discretionary expenses—defeating the very goal of long-term savings.
For any long-term investment, returns must outpace inflation. Unfortunately, the Digit ICON Guaranteed Savings Plan falls short on this front, making it unsuitable for a growth-oriented portfolio.
Digit ICON Guaranteed Savings Plan – Income Vs. Other Investments
Now, let’s explore how the same annual premium from the earlier illustration can be used more efficiently. The Digit ICON Guaranteed Savings Plan combines life cover with survival benefits—but separating insurance and investment often works better.
You can take a pure-term life insurance policy for protection and invest the remaining amount to achieve your financial goals.
Digit ICON Guaranteed Savings Plan – Income Vs. Pure-term + Equity Mutual Fund
A pure-term plan with a ₹10 lakh sum assured costs about ₹13,900 annually for a 20-year term and a 5-year premium payment term. This leaves ₹86,100 (from the ₹1 lakh budget) available for investment each year. Your investment choice should suit your risk appetite.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 5 years |
| Annualised Premium | ₹ 13,900 |
| Investment | ₹ 86,100 |
Let’s assume ₹86,100 is invested annually in an equity mutual fund for the first 5 years. Since the premium-paying term in the earlier example was 8 years, the full ₹1 lakh can be invested for the remaining 3 years.
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -1,00,000 | 10,00,000 |
| 36 | 2 | -1,00,000 | 10,00,000 |
| 37 | 3 | -1,00,000 | 10,00,000 |
| 38 | 4 | -1,00,000 | 10,00,000 |
| 39 | 5 | -1,00,000 | 10,00,000 |
| 40 | 6 | -1,00,000 | 10,00,000 |
| 41 | 7 | -1,00,000 | 10,00,000 |
| 42 | 8 | -1,00,000 | 10,00,000 |
| 43 | 9 | 0 | 10,00,000 |
| 44 | 10 | 1,04,745 | 10,00,000 |
| 45 | 11 | 1,04,745 | 10,00,000 |
| 46 | 12 | 1,04,745 | 10,00,000 |
| 47 | 13 | 1,04,745 | 10,00,000 |
| 48 | 14 | 1,04,745 | 10,00,000 |
| 49 | 15 | 1,04,745 | 10,00,000 |
| 50 | 16 | 1,04,745 | 10,00,000 |
| 51 | 17 | 1,04,745 | 10,00,000 |
| 52 | 18 | 1,04,745 | 10,00,000 |
| 53 | 19 | 1,04,745 | 10,00,000 |
| 54 | 20 | 1,04,745 | 10,00,000 |
| 55 | 9,12,765 | ||
| IRR | 7.70% |
After 8 years, the accumulated corpus is shifted into a debt instrument, as annual withdrawals are required. On exiting the equity fund, capital gains tax is payable.
Pre-tax fund value: ₹12.38 lakh
Post-tax value: ₹11.90 lakh
This amount is then invested in a debt product yielding 7%, from which ₹1.04 lakh is withdrawn annually. In the final year, the remaining balance is withdrawn completely.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 8 years | 12,38,617 |
| Purchase price | 7,30,500 |
| Long-Term Capital Gains | 5,08,117 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 3,83,117 |
| Tax paid on LTCG | 47,890 |
| Maturity value after tax | 11,90,727 |
For this cash flow, the IRR works out to 7.70%. A long-term investment that outperforms inflation is always favourable. And if you avoid annual withdrawals and let the investment compound, the returns would be even higher—because compounding delivers maximum benefits over time.
This comparison shows that both returns and cash-flow efficiency matter when choosing an investment product.
Under the Digit ICON Guaranteed Savings Plan, the income payouts are insufficient to meet meaningful financial goals, and the overall returns remain unsatisfactory.
Final Verdict on Digit ICON Guaranteed Savings Plan – Income
The Digit ICON Guaranteed Savings Plan – Income Variant does not participate in profits and is not market-linked. All benefits are fixed and guaranteed right from the beginning.
The Survival Benefit starts after the Premium Payment Term and is meant to support recurring expenses. However, the plan does not offer any maturity benefit and it also has a high agent commission.
While the cash flow is predetermined and comes with flexible payout options, and the Policy Continuance Benefit ensures your nominee receives the scheduled benefits, the returns tell a different story. When the IRR is below par, the value of guaranteed income diminishes.
To stay ahead of inflation, your investments must earn returns higher than the inflation rate. The primary reason for the low returns here is the bundling of insurance and investment into a single product.
A more efficient strategy is to buy a pure-term life insurance policy for protection and invest separately to meet your financial goals.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
For personalised guidance, consider consulting a Certified Financial Planner (CFP) who can help you design a customised financial plan for your family’s long-term well-being.
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