Bandhan Term Insurance Review 2025

Bandhan Term Insurance: Overview 

Bandhan Term Insurance spans plans like iTerm Prime, iTerm Comfort, and iTerm Return of Premium (TROP). All plans listed above offer affordable coverage (starting at min ₹25 lakhs), return of premiums on survival, and a high Claim Settlement Ratio (99.59% avg. across 2022-25), which collectively boost customer confidence.

Introduction

When exploring reliable term insurance options, Bandhan Life Insurance may not be as well-known as larger players, given its smaller market share and business volume. However, it’s steadily growing its presence thanks to the backing by Bandhan Bank. 

Founded in 2008 as Aegon Religare Life Insurance, the insurer was rebranded in 2024 after acquisition by Bandhan Financial Holdings. It now offers a range of digital-first insurance solutions. 

In this guide, we explore Bandhan Life Term Insurance, its features, benefits, documents, buying process, alongside our expert insights.

Still confused between term insurance plans? Talk to Ditto advisors for honest, unbiased advice.

Bandhan Term Insurance Plans: Comparison Table

Benefits of Bandhan Term Insurance

1) Flexible Plan Options:

Bandhan Term Insurance offers a choice to suit different financial preferences.

• iTerm Prime / iTerm Comfort: These two are pure protection plans. They give maximum cover at a low cost.
• iTerm Return of Premium (iTROP): This plan provides protection, but if you survive the entire policy term, 100% of the total premiums paid are returned to you. A great choice for those who want life cover without letting their premium money go to waste.

Learn more about the plans in detail here. 

2) Special Exit Value (SEV) Feature:

Certain plans, like iTerm Prime and iTerm Comfort, include a 'Special Exit Value' option. This feature allows you to exit the policy mid-term, usually around the age of 55, and get back the total premiums you have paid till that point. 

To use the Special Exit Value (SEV) feature, you must have bought the policy at age 40 or below and chosen a term that ends at age 70 or later. You can exit once between ages 55 and 56, provided the policy is active and fully paid.

On exit, you’ll receive a refund of all base premiums paid (excluding rider premiums and taxes). Once exercised, the policy ends immediately, and life cover ceases.

3) Affordable Premiums for High Coverage:

Bandhan term insurance lets you get a large life cover at economical , budget-friendly premiums. 

For a 28-year-old in Delhi, Bandhan’s ₹1 crore term cover costs ₹9,576/year (iTerm Prime, till age 65) and ₹16,162/year (iTerm Comfort, till age 65). 

If extended till age 70, the premiums become ₹10,766/year (iTerm Prime) and ₹18,463/year (iTerm Comfort) where you get the inbuilt SEV feature.

4) Enhanced Protection via Rider:

Bandhan Term Insurance plans offer the Accidental Death (AD) Benefit Rider (to be bought separately).

If the Life Assured dies in an accident, the nominee receives an extra lump-sum amount equal to the rider’s Sum Assured, in addition to the base policy cover. For example, with a ₹1 crore base policy and a ₹20 lakh AD rider, the nominee would get ₹1.2 crore in case of accidental death.

5) Attractive Tax Benefits:

The premiums paid towards your Bandhan Term Insurance are  eligible for deductions under Section 80C (old tax regime) of the Income Tax Act, 1961. Furthermore, the final death benefit received by your nominee is generally tax-free under Section 10(10D).

Cons of Bandhan Term Insurance

1. Limited Product Depth: Bandhan’s term plans lack several important in-built features found in modern term policies, and also various rider options such as Critical Illness Rider, Waiver of Premium, Accidental Total and Permanent Disability cover, and Terminal Illness Benefit.
2. Limited Death Payout Options: While many top insurers such as HDFC Life, ICICI Prudential, Max Life, and Tata AIA offer flexible choices like monthly income, increasing income, or an auto-increasing cover (5%–10% yearly), Bandhan term plans only provide a lump-sum payout. There’s no instalment or inflation-linked option for the death benefit.
3. Digital Claim Support: Bandhan Life allows you to initiate a claim online or through a call, but the actual claim submission and documentation still need offline or branch-level follow-up. Unlike fully digital insurers (like Acko and Digit), the end-to-end claim process isn’t completely online yet.

How to Buy Bandhan Term Insurance?

Buying a Bandhan Term Insurance policy is surprisingly simple and digital-first.

1. Calculate Your Need: Start by estimating how much protection your family would need to maintain their lifestyle. You can use tools like the Term Insurance Cover Calculator by Ditto. This will give you a personalized recommendation based on your age, income, and expenses. 
2. Choose the Right Plan: Select between the pure term plans (iTerm Prime/Comfort) or the Return of Premium plan (iTROP) based on whether you want the survival benefit.
3. Online Application: Visit the Bandhan Life website or an aggregator platform and fill in accurate personal, income, and health details.
4. Pay the First Premium: Once you submit the application, pay the initial premium to begin the underwriting process.
5. Underwriting: Bandhan Life conducts digital underwriting. Depending on your profile, they may request a Video Medical Examination (V-MER) or a physical medical test.
6. Policy Decision: After underwriting, you receive the approval decision, and your policy document is issued digitally.

Documents Required to Buy Bandhan Term Insurance

The online buying process for Bandhan Term Insurance requires minimal paperwork, but you must be ready with the following:

• Photograph
• Identity Proof (PAN/Aadhar card, passport, driver's license)
• Address Proof (Aadhar card, utility bills, passport)
• Income Proof (latest salary slips, Form 16, ITR documentation)
• Proposal Form (duly filled and signed)
• Medical Proof (if requested by the insurer based on age or cover amount)

Inclusions and Exclusions of Bandhan Term Insurance

Inclusions (What Bandhan Term Insurance Covers)

Bandhan Term Insurance pays a lump-sum death benefit if the policyholder passes away during the policy term. It also offers optional accidental death cover and allows policy revival within five years of lapse. 

Exclusions (What Bandhan Term Insurance Does NOT Cover)

Claims are not paid in cases involving suicide within 12 months, self-inflicted harm, substance abuse, criminal activity, war, or non-disclosure of material information. Non-payment of premiums leads to policy lapse.

Documents Required for Filing a Claim for Bandhan Term Insurance

For any Bandhan Term Insurance claim, the nominee must submit the claimant statement, death certificate, KYC proofs, bank details, relationship proof, and employment certificate if applicable. Additional medical records are required for natural or illness-related deaths, as per IRDAI claim guidelines.

For accidental, suicide, or murder cases, documents like the FIR, post-mortem report, inquest report, police panchnama, and other investigation reports may be needed. These help the insurer verify the circumstances of death before settling the claim, in line with standard IRDAI protocols.

For more information related to documents and claims, read here.

Why Talk to Ditto for Term Insurance

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Confused about the right term insurance? Speak to Ditto’s certified advisors for free, unbiased guidance. Book your call now, slots fill up fast!

Conclusion

Bandhan Term Insurance offers affordable protection and flexible plan options like iTerm Prime and iTROP. It has an impressive claim performance, with a 99.59% % Claim Settlement Ratio between 2022-25 and 97.40% Amount Settlement Ratio between 2021 and 2024. However, its average complaint volume per 10,000 claims is 39.67 (FY 2022–25), which is notably higher than many leading term insurers.

Bandhan Life is still establishing its market position, with smaller business volume and limited product flexibility. Its plans lack key riders and customization features that many modern insurers provide. Overall, Bandhan’s offerings are dependable but basic. There are currently stronger and more customizable term plans in the market that offer better value and long-term peace of mind.

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