Bandhan Life iTerm Elite Plan

Key Features for Bandhan Life iTerm Elite Plan

Here are the key features of this term insurance plan: 

• The plan offers comprehensive protection at affordable premiums.

• You can choose to increase or decrease the cover with the flexible sum assured options as per your needs.

• The cover continuance benefit allows you to defer the due premium payments without policy lapse.

• You can get coverage for your spouse with this plan.

• With this plan, you get a special gift upon becoming a mother.

• The Bandhan iTerm Elite plan offers access to Health Management Services.

• You can exit the plan early and receive a percentage of the premiums paid.

• Get up to 17% discount on the first year premiums.

• Claim term insurance tax benefits as per the prevailing tax laws.

Benefits Offered Under the Bandhan iTerm Elite

Death Benefit

On the death of the policyholder, given that all the premiums have been duly paid, the highest of the following death benefits will be paid to the nominee.

• For Single Pay: (10 times for ages <60 years and 1.25 times for ages >=60 years) of the single premiums.

• For other premium payment options: 11 times the Annualised Premiums

• 105% of the total premiums paid plus underwriting extra premiums, if any as on the death date.

• Base sum assured

The base sum assured will be equal to the sum assured selected by the policyholder at the time of policy purchase or will be the revised sum assured after selecting the Adapt Assure option.

Death Benefit Payout Option

The nominee can choose from the following claim payout options as per their suitability:

• 100% of the death benefit will be paid as a lump sum

• 100% of the death benefit as monthly incomes

• 50% fo the benefit as lump sum and the remaining 50% as monthly incomes 

This option can be selected at the time of claim or when buying the policy. If the monthly income option is selected, the benefit will be paid as installments over 5 or 10 years (as selected by the claimant). If no option is selected, the default option will be considered a lump sum benefit.

Insta Payment on Claim Registration

On intimating the claim to the insurer, the instant claim benefit of 1% up to a max of 1 Lakh will be paid to the nominee. The waiting period for this benefit will be 3 years from the date of purchase or revival of the policy. The remaining claim amount will be paid on the successful verification of the claim.

Maturity Benefits

There are no maturity benefits offered under this plan.

Eligibility Conditions of Bandhan iTerm Elite Term Plan

Here are the eligibility conditions to buy this Bandhan term insurance plan online:

Additional Benefits Offered With the Bandhan Life iTerm Elite Plan

Gift to Mothers: Female customers of the policy can receive a gift benefit on childbirth or legal adoption. This benefit is available to be claimed twice within the policy term, given that the policy is still in force at the time of each event.

• First childbirth/adoption: A benefit equivalent to 10% of the total premiums paid (plus underwriting premiums, if any) till the date of the first event will be paid.

• Second childbirth/adoption: On the first benefit claim being already made, an additional 10% of the total premium paid (plus underwriting premiums, if any) from the date of the first event, will be paid to the mother.

To avail this benefit, you need to present the birth certificate or the adoption documents. The benefit can be claimed after at least 1 year of the policy, and can be claimed till the policyholder reaches 45 years of age. There should also be a gap of 1 year between the first and the second claim of the benefits.

Cover for Homemakers: Under this benefit, both you and your partner can get comprehensive financial cover. You can buy an additional policy for your spouse at any time during the policy term (except the last 10 policy years). Term insurance riders will not be available under this homemaker policy. The benefit will be available for policies where the life assured as a sum assured of 1 Crore or higher. The maximum sum assured under the policy allowed will be equal to 50% of your sum assured (capped at 50 Lakhs).

Adapt Assure: With this option, you can increase or decrease your sum assured twice during the premium payment term. The increase or decrease in sum assured will be in effect from the next policy anniversary. To increase the sum assured, the following conditions are applicable:

• Medical tests are compulsory at the time of increasing the life cover.

• The sum assured can be increased from 25% to 100% (in multiples of 5%) of the original base sum assured, and additional premiums will be applicable.

• The additional premiums will be calculated based on the attained age, increased sum assured, remaining policy term, remaining premium payments at the time of policy anniversary. 

• After any increase in the sum assured, any future decrease will be allowed from 25% to 50% of the prevailing sum assured.

• The policyholder cannot discontinue the additional premiums and only pay the base premiums once the sum assured has been increased.

To decrease the sum assured, the following conditions need to be followed:

• Only allowed from 25% to 50% as of the prevailing sum assured, with a corresponding decrease in premiums, subject to the minimum sum assured and/or premiums available under the plan.

• Premiums will be estimated based on the age at inception, decreased sum assured, original policy term, and original premium payment term.

This option can be used after 3 completed policy years and before the last 5 premium paying years.

Special Exit Value (SEV): The Special Exit Value (SEV) feature lets you exit the policy early if your need for term insurance reduces before the policy term ends, while recovering premiums paid.

For Limited Pay

• Dual Exit Option: Exit at 55 and 65 years. At 55, you can receive up to 50% of total premiums paid. At 65, the remaining amount is paid and the policy ends.

• Single Exit Option: Exit once at 65 years and receive 100% of total premiums paid, after which the policy terminates.

For Regular Pay

• You can exit once in the policy term minus 15th year window and receive 100% of total premiums paid till date, after which the policy ends.

The conditions you need to satisfy to avail this benefit: 

• Available only for active in-force policies

• Entry age should be up to 40 years

• Policy term must be 30 years or more

• Maturity age should be 70 years or above

• No extra premium is charged for this feature

• Not available for single pay policies

• Applies only to base policy premium, excluding rider premiums

In limited pay, even if you claim 50% at age 55, the death benefit remains unchanged, making this a flexible exit feature without reducing family protection.

Change in Premium Payment Option: This feature allows you to switch your premium payment mode from regular pay to limited pay during the 1st policy year, giving you more flexibility if your financial planning changes after purchase.

• The switch is allowed only within the first policy year

• It is subject to minimum premium eligibility conditions

• Once changed, premiums are recalculated as per limited pay rates based on the original entry age and policy term

• Any premium difference arising from the switch for the first year is adjusted and paid by the policyholder or insurer, as applicable, along with the next premium due

This option is useful if you later prefer to finish premium payments earlier while keeping the same coverage tenure.

Health Management Services: The plan also offers complimentary health management services through Bandhan Life’s registered service providers, helping you access better care beyond core life cover.

• You can avail services like international medical second opinion, doctor consultations, and wellness support

• These services are available only when the policy or rider is active and in-force

• Access depends on the availability of the service provider and eligibility conditions

• Wherever required, the primary diagnosis must be done by a registered medical practitioner

• The services are optional and completely complimentary for eligible life insured members

• They are provided by independent third-party partners, and Bandhan Life may update, replace, or discontinue them from time to time

This feature adds a useful layer of preventive care and expert medical guidance, making the plan more supportive for long-term health needs.

Cover Continuance Benefit: The Cover Continuance Benefit allows you to defer your due premium for up to 12 consecutive months, while keeping the full base cover and attached rider benefits active during this period.

• Available only after 3 completed policy years, provided all due premiums are paid and the policy is in force

• The deferment period lasts for 12 consecutive months from the first unpaid premium due date

• You must inform the insurer 45 days in advance of the premium due date (30 days for monthly mode)

• At the end of the continuance period, the outstanding premium plus the next due premium must be paid

• If not paid within the grace period of the next premium, the policy becomes lapsed

• In case of a claim during this period, the death benefit is paid after deducting unpaid premiums, including rider premiums if applicable

• This benefit can be used multiple times with a 5-policy-year gap from the previous usage

• If Adapt Assure is used, a 3-year waiting period applies from the sum assured change

• Not available in the last year of the premium paying term

• No interest is charged on deferred premiums

• Applicable for both regular pay and limited pay policies

This feature is useful when you need short-term premium flexibility without losing policy protection.

Discounts: This life insurance plan offers first-year premium discounts based on the purchase channel and customer eligibility.

• For digital purchases, the discount is 15% for limited pay, 2% for single pay, and 4% to 10% for regular pay, subject to the Board Approved Underwriting Policy

• An additional 2% first-year discount is available for existing Bandhan Life customers and employees

• Existing customers include current or past individual policyholders (as life assured or proposer) with PAN registered with Bandhan Life

• If multiple discounts apply, the maximum first-year discount cap is:

  • 6% for regular pay with sum assured below ₹75 lakh

  • 12% for regular pay with sum assured of ₹75 lakh or above

  • 17% for limited pay

  • 2% for single pay

The final eligibility and discount process is applied as per the insurer’s Board Approved Underwriting Policy.

Add-on Optional Coverages (Riders): Bandhan Life iTerm Elite also lets you strengthen your base life cover with an optional rider, provided its policy term and premium payment term match the base plan and there is no overlap in benefits.

• Bandhan Life Enhanced Accidental Death Benefit Rider: Pays a lump sum of up to 3 times the base sum assured if the life assured dies due to an accident within 180 days of the incident

• No maturity benefit is payable under this rider

• Rider terms, conditions, and eligibility should be checked in the respective sales brochure before purchase

This rider is useful if you want extra financial protection against accidental death risks.

Option to Attach or Detach Riders: The available riders are optional and come at an extra cost, allowing you to customise your Bandhan Life iTerm Elite cover as needed.

• Riders can be added at policy inception or anytime during the base plan’s premium payment term, subject to rider eligibility

• Adding a rider is subject to underwriting requirements

• Riders can also be detached later if your needs change

• Any rider addition or removal becomes effective from the next premium due date after the request is accepted

This feature gives you the flexibility to upgrade or simplify your coverage over time.

Policy Details of the Bandhan iTerm Elite Plan

Surrender Benefit

This product does not provide any surrender benefit, so no surrender value is payable on early exit.

Free Look Period

You get a 30-day free look period from the date of receiving the policy (physical or electronic). If no claim has been made and you are not satisfied, you can cancel the policy within this period. The insurer will refund the premium after deducting proportionate risk premium, medical examination expenses (if any), and stamp duty. Once this amount is paid, the policy terminates and all rights and benefits end.

Grace Period

If a premium is missed, you get a 15-day grace period for monthly frequency and 30 days for all other payment modes. During this period, the policy continues to remain in force without any interest charge.

Lapse and Unexpired Risk Premium Value (URPV)

If premiums remain unpaid after the grace period, the policy lapses and cover ceases.

• Regular Pay: No benefit is payable once the policy lapses

• Limited Pay: If 2 full years’ premiums have been paid, the policy acquires URPV in case of voluntary termination or if the life assured survives till the end of the revival period

• Single Pay: The policy acquires URPV immediately after single premium payment

URPV is calculated as per the insurer’s defined formula using:

• premiums paid

• underwriting extra premiums

• remaining coverage term

• URPV factor

• less any SEV / Gift to Mothers benefit already paid

The policy terminates once URPV is paid.

Policy Revival

A lapsed policy can be revived within 5 consecutive completed years from the due date of the first unpaid premium, before the policy term expires.

• Revival is subject to the insurer’s Board Approved Underwriting Policy

• All outstanding premiums with applicable interest must be paid

• The current interest rate for FY 2025-26 is 8.50% p.a. compounded annually

• On revival, all benefits are restored in full

• If revival is not requested within the allowed period, the policy terminates after the revival period, and URPV is paid if applicable

• Riders cannot be revived independently and must be revived with the base plan

This version now stays much closer to the exact wording and conditions from your source.

Suicide Exclusion

Under the suicide exclusion clause, if death occurs due to suicide within 12 months from policy commencement or revival, the claimant will receive 100% of total premiums paid plus underwriting extra premiums (if any), or the surrender value available on the date of death, whichever is higher, provided the policy is in force.

If suicide occurs within 12 months of increasing the sum assured under the Adapt Assure option, the payout includes:

• the base sum assured at original commencement

• any earlier sum assured increases completed more than 12 months before death

• 100% of premiums paid for the most recent increased additional sum assured

The policy terminates after this payout.