IDFC Term Insurance Review 2026

Q: Which bank is good for term insurance?

Banks such as IDFC First Bank can be good distribution channels if you prefer assisted buying and in-branch support. However, banks do not issue insurance policies or handle claims, so the experience largely depends on the insurer offering the term plan.

Q: Who is the best company for term life insurance?

There is no single best insurer for everyone. However, insurers like HDFC Life and Axis Max Life are often considered reliable based on factors such as claim performance, product transparency, and financial strength.

Q: Is buying term insurance through a bank a good idea?

Buying term insurance through a bank can be suitable if you value in-person assistance. However, it is important to compare plans across insurers to ensure you get the most appropriate coverage and pricing.

Quick Overview

IDFC First Bank acts as a Corporate Agent (CA0106) registered with the Insurance Regulatory and Development Authority of India (IRDAI). The bank is not the insurer and does not underwrite risk, decide claim outcomes, or design products.

Many people buy term insurance through their bank because it feels easy and familiar. But convenience alone does not always translate into clarity around coverage, insurer responsibility, or what happens at the time of a claim.

At Ditto, we reviewed IRDAI disclosures and publicly available information to explain how IDFC First Bank’s term insurance model works, its partner insurers, and the types of term plans typically offered.

Life Insurers Partnered With IDFC First Bank

According to its website disclosures, these partners include:

List of Plans Offered by IDFC FIRST Bank

The exact plans available can vary based on insurer partnerships, branch location, and ongoing campaigns. However, here’s a list of the types of life insurance plans commonly listed on the bank’s website:

Term Insurance (Pure Protection)
You can get coverage for a chosen term, and if death happens during this policy term, the benefit is paid to the nominee. There are multiple payout options: lump sum/lump sum + annuity/ annuity.

For example, IDFC FIRST Bank’s term insurance page lists these plans: HDFC Life Click 2 Protect Life, ICICI Prudential iProtect Smart, Sampoorna Raksha Supreme, ABSLI Salaried Term Plan, ABSLI DigiShield Plan, Bajaj Life eTouch II, ABSLI Income Suraksha Plan.
Investment-Linked Life Insurance (ULIPs)
ULIPs combine life insurance and market-linked investments. A portion of your premium goes towards life coverage, while the remaining amount is invested in the market. For example: SBI Smart Fortune Builder and Bajaj Goal Assure IV.
Savings/Traditional Life Insurance Plans
These plans are designed to pay out a lump sum at the end of a specified term. They also include a death benefit during the policy term. Some examples of this type are non-linked savings plans that offer guaranteed benefits, like the Guaranteed Income Insurance Plan. Additionally, there are participating income plans (bonus-linked), such as Sanchay Par Advantage and ICICI Pru Gold.
Govt Life Cover via PMSBY/PMJJBY
IDFC’s Pradhan Mantri Insurance page covers the PMJJBY scheme, which provides ₹2 lakh of death cover for any cause. It also mentions PMSBY, which is an accident cover scheme.
Optional Riders and Add-ons
Depending on the insurer, customers may be offered optional riders. These can include critical illness cover, accidental death benefit, or waiver of premium.

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Things to Keep in Mind When Buying Life/Term Insurance Through Any Bank

The Insurer Handles Underwriting and Claims

The insurer (not the bank) designs the product, conducts underwriting (medical/financial checks), issues the policy, and makes claim decisions. Your bank RM may help with paperwork or follow-ups, but the insurer’s decision is final, and the bank has no say in claims.

Limited Insurer and Plan Choices

Banks sell policies only from their partner insurers, which means you may not see the best-priced or best-suited option for your age, health, or preferences. You could miss plans with better premiums, higher cover, riders with better coverage, or underwriting that fits your medical history better.

Be Clear on What Type of Life Insurance You’re Buying

Not all bank-sold “life insurance” is pure term cover. You may be offered a term with return of premium, savings, or a guaranteed income plan, or a ULIP, which combines insurance with investment. If your goal is maximum protection at the lowest cost, ensure you are buying a pure term plan.

Suitability Depends on Your Profile

Choosing the right term plan requires evaluating your income, liabilities, dependents, existing cover, policy duration, payout structure, and need for riders. Bank discussions are usually short and may not go deep into these aspects unless you actively ask the right questions and assess suitability yourself.

Disclosures and Documentation Are Critical

Non-disclosure of medical history, smoking or tobacco use, hazardous activities, or existing policies is one of the most common reasons for claim delays or rejections. Always fill disclosures yourself where possible, review the proposal form carefully, and ensure your answers match your medical records and actual lifestyle.

How IDFC First Bank Earns Revenue

IDFC First Bank earns commissions from insurers for selling life insurance, as per IRDAI’s Corporate Agent Regulations and commission disclosure norms. For many term products, first-year commissions can range significantly depending on product type, premium, payment term, and frequency, with smaller renewal fees thereafter. Insurers may also pay additional performance-based rewards under their board-approved policies.

Ditto’s Note: As the insurer sets the pricing under IRDAI-approved terms, your premium remains unaffected despite your bank earning a commission.

Why Choose Ditto for Term Insurance?

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IDFC First Term Insurance: Ditto’s Take

IDFC First Bank offers access to term insurance from multiple well-known insurers, which can work well if you prefer an assisted, relationship manager-led buying experience. That said, the plans available could be limited to the bank’s partnerships at a given point in time, and suitability checks may depend heavily on how proactively the conversation is handled at the branch or RM level.

Disclosure

Ditto is also an IRDAI-licensed Corporate Agent (Licence No. CA0738), operating under the same regulatory framework as banks for insurance distribution. Our insights are shaped by hands-on experience working across insurers and distribution models, including bancassurance.

While we aim to present this guide as objectively and transparently as possible, we encourage readers to compare multiple options and choose the option that best fits their long-term needs.

Frequently Asked Questions

Can I choose the insurer when buying via IDFC First Bank?

You can choose from the insurers available through the bank at that time. However, your choice is limited to IDFC First Bank’s partner insurers and not the entire market.

Which bank is good for term insurance?

Banks like IDFC First Bank can be good distribution channels if you prefer assisted buying and in-branch support. However, banks do not issue policies or handle claims. So, the quality depends on the insurer offering the term plan.

Who is the best company for term life insurance?

No insurer is universally the best, but companies such as HDFC Life and Axis Max Life are considered reliable. This is based on claim performance, product clarity, and financial strength.