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Is the Digit Icon Guaranteed Savings Plan – Income + Lumpsum Variant truly a smart path to financial security, or does it fall short when compared to better wealth-building options?
Can the Digit Icon Income + Lumpsum Variant genuinely support your long-term goals, or is it just another traditional plan wrapped in attractive marketing?
Does the Digit Icon Guaranteed Savings Plan really offer meaningful returns, or are you settling for predictability at the cost of growth?This review walks you through the plan’s key features, benefits, and limitations—along with a detailed illustration—to help you make an informed decision.
Table of Contents
What is the Digit Icon Guaranteed Savings Plan – Income + Lumpsum?
What are the features of the Digit Icon Guaranteed Savings Plan – Income + Lumpsum?
What are the plan variants in the Digit Icon Guaranteed Savings Plan – Income + Lumpsum?
What are the benefits of the Digit Icon Guaranteed Savings Plan – Income + Lumpsum?
Free Look Period for the Digit Icon Guaranteed Savings Plan – Income + Lumpsum
Surrendering the Digit Icon Guaranteed Savings Plan – Income + Lumpsum
What are the advantages of the Digit Icon Guaranteed Savings Plan – Income + Lumpsum?
What are the disadvantages of the Digit Icon Guaranteed Savings Plan – Income + Lumpsum?
Research Methodology of Digit Icon Guaranteed Savings Plan – Income + Lumpsum
Benefit Illustration – IRR Analysis of Digit Icon Guaranteed Savings Plan – Income + Lumpsum
Digit Icon Guaranteed Savings Plan Income + Lumpsum Vs. Other Investments
Digit Icon Guaranteed Savings Plan Income + Lumpsum Vs. Pure-term + Equity Mutual Fund
Final Verdict on the Digit Icon Guaranteed Savings Plan Income + Lumpsum
What is the Digit Icon Guaranteed Savings Plan – Income + Lumpsum?
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 + Lumpsum?
- Comprehensive Life Cover: Provides strong financial protection for your family through its extensive life insurance component.
- Assured Returns: Offers guaranteed, fixed returns that remain unaffected by market fluctuations.
- Enhanced Protection: In case of accidental death, the nominee receives twice the Sum Assured, ensuring added financial security.
- Tax Benefits: Premiums qualify for deductions under Section 80C, and policy payouts are exempt under Section 10(10D) of the Income Tax Act.
What are the plan variants in the Digit Icon Guaranteed Savings Plan – Income + Lumpsum?
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 Lump sum benefit variant.
What are the benefits of the Digit Icon Guaranteed Savings Plan – Income + Lumpsum?
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 plus Lumpsum Benefit variant:
Maturity Benefit
If Guaranteed Income (GI) payout starts during Premium Payment Term (GI starts in 1st, 2nd or 5th policy year), then,
- Sum Assured on Maturity + Accrued Special Additions, if any
If Guaranteed Income (GI) payout starts after completion of Premium Payment Term (GI starts in PPT+1st or PPT+2nd, PPT+4th or PPT+6th policy year), then
- Sum Assured on Maturity, which will be equal to 50% or 100% or 150% of the Total Annualised Premium payable.
Any one of the Sum Assured on Maturity percentages (as mentioned in the previous bullet point) can be chosen by you at inception.
Grace Period, Discontinuance and Revival of the Digit Icon Guaranteed Savings Plan – Income + Lumpsum
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 + Lumpsum
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 + Lumpsum
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 + Lumpsum?
- Critical Illness Coverage: Offers financial protection against a broad range of specified critical illnesses.
- Loan Facility: Allows policyholders to borrow up to 80% of the surrender value when they need funds.
- Wellness Benefits: Provides access to 15+ wellness features designed to promote and reward healthier habits.
- Flexible Options: Choose your premium amount, payment frequency, and policy term based on your financial comfort and long-term goals.
- Policy Continuance Benefit: Ensures that your family continues to receive all scheduled benefits even if you are no longer around.
- Family Income Option: If the policyholder passes away during the income benefit period, the regular income payouts continue seamlessly to the nominee.
What are the disadvantages of the Digit Icon Guaranteed Savings Plan – Income + Lumpsum?
- Interrupts Compounding: Receiving income payouts during the policy term breaks the compounding process, which can restrict long-term wealth creation.
- Limited Support for Major Goals: The survival benefit may not be adequate to meet large or big-ticket financial requirements.
- Modest Returns: Although the Digit Icon Guaranteed Savings plan provides guaranteed benefits, the overall returns tend to be on the lower side.
- Lower Sum Assured: The sum assured may not be enough to fully cover your long-term financial goals and responsibilities.
Research Methodology of Digit Icon Guaranteed Savings Plan – Income + Lumpsum
From a liquidity standpoint, the Digit Icon Guaranteed Savings Plan provides guaranteed survival benefits throughout the income payout period, along with a lump sum maturity benefit.
Evaluating the returns using percentage-based metrics—such as the Internal Rate of Return (IRR)—helps investors assess the Digit Icon Guaranteed Savings plan more effectively. Below is an illustration based on the figures provided in the policy brochure.
Benefit Illustration – IRR Analysis of Digit Icon Guaranteed Savings Plan – Income + Lumpsum
A 35-year-old male invests ₹1,00,000 per year in the Digit Icon Guaranteed Savings Plan, choosing a 10-year premium payment term, a 30-year policy term, and a 30-year income payout period under the Income + Lumpsum Benefit Option.
He opts for annual income payouts and has a sum assured of ₹10 lakhs.
| Male | 35 years |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 30 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
Starting from the end of the first policy year, he receives a survival benefit of ₹20,000 annually. At the end of the policy term, he also receives a lump sum amount of ₹22.73 lakhs. All these benefits are guaranteed, resulting in an IRR of 5.15%.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,00,000 | 10,00,000 |
| 36 | 2 | -80,000 | 10,00,000 |
| 37 | 3 | -80,000 | 10,00,000 |
| 38 | 4 | -80,000 | 10,00,000 |
| 39 | 5 | -80,000 | 10,00,000 |
| 40 | 6 | -80,000 | 10,00,000 |
| 41 | 7 | -80,000 | 10,00,000 |
| 42 | 8 | -80,000 | 10,00,000 |
| 43 | 9 | -80,000 | 10,00,000 |
| 44 | 10 | -80,000 | 10,00,000 |
| 45 | 11 | 20,000 | 10,00,000 |
| 46 | 12 | 20,000 | 10,00,000 |
| 47 | 13 | 20,000 | 10,00,000 |
| 48 | 14 | 20,000 | 10,00,000 |
| 49 | 15 | 20,000 | 10,00,000 |
| 50 | 16 | 20,000 | 10,00,000 |
| 51 | 17 | 20,000 | 10,00,000 |
| 52 | 18 | 20,000 | 10,00,000 |
| 53 | 19 | 20,000 | 10,00,000 |
| 54 | 20 | 20,000 | 10,00,000 |
| 55 | 21 | 20,000 | 10,00,000 |
| 56 | 22 | 20,000 | 10,00,000 |
| 57 | 23 | 20,000 | 10,00,000 |
| 58 | 24 | 20,000 | 10,00,000 |
| 59 | 25 | 20,000 | 10,00,000 |
| 60 | 26 | 20,000 | 10,00,000 |
| 61 | 27 | 20,000 | 10,00,000 |
| 62 | 28 | 20,000 | 10,00,000 |
| 63 | 29 | 20,000 | 10,00,000 |
| 64 | 30 | 20,000 | 10,00,000 |
| 65 | 22,93,920 | ||
| IRR | 5.15% |
While the plan offers predictability, this long-term return of just 5.15% as per the Digit Icon Guaranteed Savings Plan maturity calculator, is not attractive for an investor.
The annual survival benefits reduce the final lump sum, and neither the yearly payouts nor the maturity amount is substantial enough to meet major financial goals. As a result, the Digit Icon Guaranteed Savings Plan may not be a beneficial investment option.
Digit Icon Guaranteed Savings Plan Income + Lumpsum Vs. Other Investments
The Digit Icon Guaranteed Savings Plan’s returns struggle to keep up with inflation over the long term. To achieve better growth, it’s wiser to channel your savings into more efficient alternatives.
By separating insurance and investment, you can benefit from higher returns, improved liquidity, and greater flexibility. Let’s explore how this alternate strategy works.
Digit Icon Guaranteed Savings Plan Income + Lumpsum Vs. Pure-term + Equity Mutual Fund
Using the same annual outlay of ₹1 lakh, you can divide the amount between pure insurance coverage and investments.
A term life insurance policy with a ₹10 lakh sum assured, a 30-year policy term, and a 10-year premium payment term costs just ₹12,400 per year. The remaining ₹87,600 can be invested to build wealth.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 30 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 12,400 |
| Investment | ₹ 87,600 |
In this illustration, the investment portion is allocated to an equity mutual fund. For the first ten years, the saved premium is invested in an equity scheme. At the end of 10 years, the accumulated amount is shifted to a debt instrument earning 7% annually.
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -1,00,000 | 10,00,000 |
| 36 | 2 | -80,000 | 10,00,000 |
| 37 | 3 | -80,000 | 10,00,000 |
| 38 | 4 | -80,000 | 10,00,000 |
| 39 | 5 | -80,000 | 10,00,000 |
| 40 | 6 | -80,000 | 10,00,000 |
| 41 | 7 | -80,000 | 10,00,000 |
| 42 | 8 | -80,000 | 10,00,000 |
| 43 | 9 | -80,000 | 10,00,000 |
| 44 | 10 | -80,000 | 10,00,000 |
| 45 | 11 | 20,000 | 10,00,000 |
| 46 | 12 | 20,000 | 10,00,000 |
| 47 | 13 | 20,000 | 10,00,000 |
| 48 | 14 | 20,000 | 10,00,000 |
| 49 | 15 | 20,000 | 10,00,000 |
| 50 | 16 | 20,000 | 10,00,000 |
| 51 | 17 | 20,000 | 10,00,000 |
| 52 | 18 | 20,000 | 10,00,000 |
| 53 | 19 | 20,000 | 10,00,000 |
| 54 | 20 | 20,000 | 10,00,000 |
| 55 | 21 | 20,000 | 10,00,000 |
| 56 | 22 | 20,000 | 10,00,000 |
| 57 | 23 | 20,000 | 10,00,000 |
| 58 | 24 | 20,000 | 10,00,000 |
| 59 | 25 | 20,000 | 10,00,000 |
| 60 | 26 | 20,000 | 10,00,000 |
| 61 | 27 | 20,000 | 10,00,000 |
| 62 | 28 | 20,000 | 10,00,000 |
| 63 | 29 | 20,000 | 10,00,000 |
| 64 | 30 | 20,000 | 10,00,000 |
| 65 | 43,15,991 | ||
| IRR | 7.42% |
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 10 years | 13,90,767 |
| Purchase price | 8,76,000 |
| Long-Term Capital Gains | 5,14,767 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 3,89,767 |
| Tax paid on LTCG | 48,721 |
| Maturity value after tax | 13,42,046 |
After factoring in capital gains tax, the post-tax maturity value comes to ₹13.42 lakhs. From this corpus, ₹20,000 is withdrawn annually, mirroring the survival benefit offered under the Digit Icon Guaranteed Savings Plan.
At the end, the remaining balance is fully withdrawn to match the lump sum payout of the Digit Icon plan, resulting in a maturity amount that is almost double that of the insurance plan.
This cash flow pattern delivers an IRR of 7.42%.
And the benefit doesn’t stop there. If you avoid annual withdrawals, your investment corpus grows even faster, leading to significantly higher returns.
This strategy also offers liquidity and flexibility—allowing you to access funds anytime—unlike the rigid and restrictive payout structure of the Digit Icon Guaranteed Savings Plan.
Final Verdict on the Digit Icon Guaranteed Savings Plan Income + Lumpsum
The Digit Icon Guaranteed Savings Plan – Income + Lumpsum Variant provides guaranteed survival benefits at regular intervals along with a final lump sum payout.
While these features offer predictability, the long-term returns are not favourable, and the life insurance coverage is too limited to provide substantial financial support to a family and it also has a high agent commission.
Overall, the combination of inadequate life cover and low returns makes this plan an unattractive choice for investors. Relying on a traditional insurance policy for regular income is not ideal.
A more effective approach is to separate insurance and investment. Build a diversified investment portfolio for long-term wealth creation, and ensure you have adequate life insurance—preferably through a pure-term policy, which is available at affordable premiums.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
For personalised advice on balancing insurance and investments, consult a Certified Financial Planner who can design a comprehensive plan aligned with your risk profile, time horizon, and life goals.
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