Bandhan Life iTerm Prime Term Insurance Review

What is Bandhan Life iTerm Prime?

Bandhan Life iTerm Prime is designed to provide a lump-sum payout to your nominee if you pass away during the policy term. Like all pure term plans, it does not offer maturity benefits. The plan focuses on keeping premiums relatively low during your earning years while giving you long-term coverage that can extend up to age 85.

One distinctive element is the Special Exit Value (SEV), which allows policyholders to exit the plan later and receive premiums paid, subject to specific conditions. Outside of this feature, the plan follows a fairly standard term insurance structure.

Note: Eligibility rules are broadly standard, though limited-pay options come with stricter age limits compared to some competing term plans.

Key Features of Bandhan Life iTerm Prime

1. In-built Features

• Pays a lump-sum death benefit to the nominee if the life assured passes away during the policy term.
• Allows flexible premium payment frequencies: annual, half-yearly, or monthly.
• Offers a choice between regular pay and limited pay options.
• Coverage can extend up to age 85, depending on entry age and policy term.
• Includes a Special Exit Value for eligible policyholders, allowing exit with premiums paid later in life.
• Comes with a 30-day free look period to review and cancel the policy if needed.
• Provides a 15-day grace period for monthly payments and a 30-day grace period for other payment modes.

2. Optional Add-ons (riders)

Bandhan Life iTerm Prime offers an optional Accidental Death Rider. This rider pays an additional lump sum equal to the rider's sum assured if death occurs due to an accident. 

Riders are optional and available at an additional cost, and can be added at policy inception or during the premium payment term, subject to eligibility and underwriting. No maturity benefits are payable under riders.

Note: Bandhan Life shows strong claim reliability with a consistently high CSR and healthy solvency. While complaint levels have moderated over time, variability in ASR suggests claims amount consistency is still evolving, given the insurer’s relatively smaller scale.

Benefits of Bandhan Life iTerm Prime

The core benefit is financial protection for your family through a lump-sum payout on death. The death benefit is calculated as the highest of:

• 11× annualized premium
• 105% of total premiums paid
• Base sum assured

A key differentiator is the Special Exit Value, which allows eligible policyholders (entry age ≤40 and maturity ≥70) to exit the policy after age 55 and receive back the total premiums paid. This is useful if your financial responsibilities reduce significantly later in life.

That said, the plan does not offer survival benefits, income payouts, or built-in premium protection features.

Inclusions and Exclusions of Bandhan Life iTerm Prime

Common Inclusions: Most Bandhan term insurance plans generally cover death due to natural causes (for example, cardiac arrest), death resulting from terminal or critical illness, death caused by natural disasters or pandemics, and accidental death.

Common Exclusions: Before choosing a plan, it’s important to know the scenarios where Bandhan will not honor a claim. The key exclusions are highlighted in the infographic below and are generally applicable across term insurance products.

(Indicative premiums for a healthy, non-smoker male; ₹1 crore cover, premiums payable till policy maturity at age 65)

Note: Bandhan Life iTerm Prime can work well if you are buying early and want basic, no-frills cover. However, for buyers in their late 30s or 40s, term plans from more established players often offer better long-term value, even if the starting premium is slightly higher, because they typically provide more stable pricing with age, broader rider options, and more mature claims and service infrastructure.

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Ditto’s Take on Bandhan Life iTerm Prime

Bandhan Life iTerm Prime is a basic term plan with limited riders and a lump-sum payout option. While the Special Exit Value is a rare feature, it comes with strict eligibility and suits a small set of buyers.

The plan is competitively priced at younger ages, but premiums become less efficient with age. It also lacks several modern features, such as terminal illness cover, premium break options, health services, and instant claim payouts.

Additionally, Bandhan Life does not yet operate at the same scale as larger insurers like HDFC Life or ICICI Prudential, which may matter to buyers who prioritise long-term consistency, service depth, and proven claims infrastructure.

Note: Bandhan Life is not a partner insurer of Ditto. The information outlined in this article is sourced directly from the insurer’s website and other publicly available sources.