Bandhan Life Insurance Review

Founded in 2008 as Aegon Religare Life Insurance, Bandhan Life has transformed into a digitally driven life insurer headquartered in Mumbai. Originally a joint venture between Aegon N.V. and The Times Group, it was acquired by Bandhan Financial Holdings in 2024 and then rebranded as Bandhan Life. The company offers term plans, savings and investment plans, child plans, and ULIPs through banks, agents, brokers, and digital platforms. Between 2021 and 2024, Bandhan Life reported an average annual business income of just ₹49 crore. While it is yet to establish consistent profitability, the insurer maintained a strong solvency ratio of 2.9—well above the regulatory requirement.

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Overview

Overview of Bandhan Life Insurance

Bandhan Life offers affordable protection plans like iTerm Prime, iTerm Comfort, and Saral Jeevan Bima. These pure term products are designed to provide financial security to families in case of the policyholder’s death. While Bandhan Life doesn’t heavily rely on traditional bancassurance channels, its strength lies in tech-driven convenience, enabling customers to buy, manage, and claim policies entirely online. The company aims to reach underserved segments through simplified processes and high claim reliability, making it a strong choice for digital-savvy and first-time insurance buyers.

Claim Settlement Ratio of Bandhan Life Insurance

One of the most crucial factors when choosing a life insurance provider is the Claim Settlement Ratio (CSR), which indicates the percentage of claims the insurer successfully pays out in a given year. The CSR is calculated as:

(Total number of claims settled by the insurer in a year / Total number of claims received in that year) × 100

A high CSR reflects an insurer’s reliability, especially when dealing with the substantial sums associated with life insurance. A CSR above 97% is generally considered strong, and reviewing performance over the last few years against the industry average can provide useful insights.

Here’s how Bandhan Life performs:

Insight: Bandhan Life has maintained an impressive average CSR of 99.35% over the past three years—on par with HDFC, Axis Max, and Bajaj, and well above the industry average of 98.13%. While this consistency is a positive sign, claim settlement alone shouldn’t drive your insurer choice.

Amount Settlement Ratio of Bandhan Life Insurance

The Amount Settlement Ratio (ASR) is an important metric that helps assess whether an insurer is fairly honoring the value of both small and large claims. The ASR is calculated as:

(Total amount of claims settled / Total amount of claims filed) × 100

A high ASR, typically above 90%, indicates that the insurer is financially stable and committed to settling claims equitably, regardless of their size. This ratio provides a clear picture of how well an insurer is fulfilling its financial obligations when it comes to the actual value of claims paid out.

Here’s how Bandhan Life has performed in terms of ASR over the past three years:

Insight: Bandhan Life has maintained a strong average ASR of 97.40% over the past three years, well above the industry average of 94.17%. This consistently high payout performance highlights that Bandhan Life not only processes a large volume of claims but also honors them fairly in terms of value. For customers, this means fewer surprises when it comes to receiving the actual claim amount—an essential indicator of trust and financial strength.

Complaint Volume of Bandhan Life Insurance

Beyond just claims and payouts, it’s insightful to examine how often customers raise concerns about an insurer. This is where complaint volume comes into play. Measured as the number of complaints per 10,000 claims, this metric sheds light on the insurer’s service quality — from how effectively claims are managed to how responsive they are when issues arise.

Here’s how Bandhan Life Insurance has performed in terms of complaint volume over the past three years:

Insight: Bandhan Life Insurance saw a decrease in complaint volume from 61.0 complaints per 10,000 claims in FY 2022-2023 to 29.0 in FY 2023-2024, reflecting improvements in handling customer concerns and claim processes. However, the average of 45.3 complaints per 10,000 claims remains higher than the industry median of 15, which suggests there’s still room for enhancement. Monitoring future trends will help assess whether these positive changes continue, ultimately reflecting the company’s commitment to refining its customer service and ensuring a smooth experience for policyholders.

Offered Riders in Bandhan Life Insurance’s Term Insurance Plans

Term Insurance Plans Offered by Bandhan Life Insurance

1) Bandhan Life iTerm Prime

Bandhan Life iTerm Prime is a comprehensive term insurance plan designed to provide robust financial protection for your family, combining high life cover with affordable premiums. With its flexible features, optional riders, and exclusive online benefits, it’s especially well-suited for individuals looking for a simple yet powerful digital-first life insurance solution.

Key Highlights of Bandhan Life iTerm Prime:

• The minimum entry age is 18 years, and the maximum entry age is 65 years (50 years for limited pay options).
• The policy term ranges from 5 years to 70 years minus entry age (65 years for POS channel).
• The minimum sum assured is ₹25 lakh, and the maximum sum assured limit depends on underwriting.
• Premium payment term options include:
  • Regular Pay
  • Limited Pay for 10/ 15 years/ pay till age 60
• Premium payment frequencies available are annual, half-yearly, and monthly.
• Optional riders only include an Accidental Death Benefit, which pays out an extra benefit in case of an accidental death, along with the base sum assured..
• The Special Exit Value feature offers a refund of premiums paid (excluding taxes) if you exit the policy during a specified window—ideal for those who feel their term plan has served its purpose and want to reclaim their premiums.
• Minimal documentation: PAN, address proof (Aadhaar or Driving License), income proof (like e-ITR), and medical records if necessary.

2) Bandhan Life iTerm Comfort

Bandhan Life iTerm Comfort is a simple yet flexible term insurance plan tailored for individuals who want straightforward protection without complicated conditions. With easy digital onboarding, flexible premium options, and a unique money-back feature, it’s built for today’s digitally savvy and value-conscious policyholders.

Key Highlights of Bandhan Life iTerm Comfort:

• The minimum entry age is 18 years, and the maximum entry age is 65 years.
• The policy term ranges from 5 years to 70 years minus entry age.
• The minimum sum assured is ₹25 lakh, and the maximum is ₹1.25Cr.
• Premium payment frequencies include monthly, half-yearly, and annual modes.
• A standout feature is the Special Exit Value at age 55 (subject to additional conditions)—eligible policyholders can receive a refund of all base premiums paid, offering a smart exit option once major life responsibilities are fulfilled.The term plan coverage ends once the exit is made.
• Optional rider available: Accidental Death Benefit, for added protection.
• Tax benefits are available under Sections 80C and 10(10D) of the Income Tax Act.

3) Bandhan Life Saral Jeevan Bima

Bandhan Life Saral Jeevan Bima is a no-frills, affordable term insurance plan built to offer essential financial protection to families in the event of the policyholder’s untimely death. Designed as a standardized product by IRDAI, it’s especially suited for first-time insurance buyers or those seeking a minimal, easy-to-understand cover without complex terms and conditions.

Key Highlights of Bandhan Life Saral Jeevan Bima:

• The plan is available to individuals aged 18 to 65 years. 
• The policy term is a minimum of 5 years and a maximum of 40 years.
• The minimum sum assured is ₹5 lakh & the maximum is₹ 25 lakh, with flexible coverage based on your needs.
• Premium payment modes include Single Pay, Limited Pay (5 or 10 years), and Regular Pay (monthly, half-yearly, or annual).
• The nominee receives a lump-sum death benefit in case of the policyholder’s death.
• For non-accidental deaths within the initial 45-day waiting period, 100% of premiums paid (excluding taxes) are returned. In accidental death, the sum assured is paid from day one.
• An optional Accidental Death Rider is available to enhance protection.

Pros and Cons of Bandhan Life Insurance

If you’re considering Bandhan Life Insurance for your life insurance needs, here’s a quick look at its key strengths and weaknesses to help you decide.

Pros of Bandhan Life Insurance

• High Claim Settlement Ratio (CSR) — Bandhan Life boasts an excellent claim settlement ratio of 99.35% (average of FY 2021–24), showcasing its commitment to honouring claims promptly and reliably. This inspires confidence in its ability to support policyholders’ families during critical times.
• High Amount Settlement Ratio (ASR) — The insurer also maintains a strong ASR of 97.40% (average of FY 2021–24), indicating that not just the number of claims but even high-value claims are settled consistently. This reflects sound financial stability and credibility.
• Strong Solvency Ratio — Bandhan Life’s solvency ratio of 2.9 is almost double the IRDAI-mandated minimum of 1.5, signaling robust capital strength and a solid ability to meet future claim obligations.

Cons of Bandhan Life Insurance

• Low Annual Business Volume and Market Share — Despite being in the market for over 15 years, with a high CSR and ASR, Bandhan Life’s annual business volume numbers and overall market share remain modest compared to larger players, which suggests a relatively smaller operational scale and limited policyholder base.
• Very High Complaint Volume — The insurer has a higher-than-average complaint volume, with an average of 45.3 complaints per 10,000 claims over the past three years, substantially above the industry median of 15. This suggests possible challenges in servicing, responsiveness, or policyholder communication.
• Limited Scope to Add Riders—Bandhan Life term plans offer fewer rider options than some leading insurers. For example, it lacks a critical illness rider or waiver of premium benefit that could enhance overall protection, limiting customization for policyholders seeking broader coverage.

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Conclusion

Bandhan Life offers simple, digital-first term plans with strong claim performance — a 99.35% CSR and 97.40% ASR between 2021 and 2024. Features like Special Exit Value add some flexibility, but limited riders, small business volume, and a recent ownership shift raise questions. A decent pick for claim-focused buyers, but worth comparing with more established insurers if you want broader coverage.