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Is the Bandhan Life iInvest Advantage Plan truly the smart way to build long-term wealth — or just another ULIP dressed in “advantageous” packaging?
Is the Bandhan Life iInvest Advantage Plan ideal for disciplined, long-horizon investors — or too complex for someone who just wants a simple market-linked savings plan?
Can the Bandhan Life iInvest Advantage Plan outperform simpler investment options like mutual funds + term insurance over the long run — or will ULIP’s inherent trade-offs limit its real worth?
In this review, we’ll take a closer look at the plan’s features, benefits, and drawbacks—along with a detailed illustration to help you make an informed decision.
Table of Contents:
What is the Bandhan Life iInvest Advantage Plan?
What are the features of the Bandhan Life iInvest Advantage Plan?
What are the benefits of the Bandhan Life iInvest Advantage Plan?
What are the investment strategies and fund options in the Bandhan Life iInvest Advantage Plan?
What are the charges of the Bandhan Life iInvest Advantage Plan?
Grace Period, Discontinuance and Revival of the Bandhan Life iInvest Advantage Plan
Free Look Period for the Bandhan Life iInvest Advantage Plan
Surrendering the Bandhan Life iInvest Advantage Plan
What are the advantages of the Bandhan Life iInvest Advantage Plan?
What are the disadvantages of the Bandhan Life iInvest Advantage Plan?
Research Methodology of Bandhan Life iInvest Advantage Plan
Benefit Illustration – IRR Analysis of Bandhan Life iInvest Advantage Plan
Bandhan Life iInvest Advantage Plan Vs. Other Investments
Bandhan Life iInvest Advantage Plan Vs. Pure-term + PPF/Equity Mutual Fund
Final Verdict on Bandhan Life iInvest Advantage Plan
What is the Bandhan Life iInvest Advantage Plan?
Bandhan Life iInvest Advantage Plan is a Unit-Linked Non-Participating Individual Life Insurance Savings Plan.
It provides a life insurance cover to safeguard the future of your loved ones, while also providing you with the opportunity to participate in market-linked returns, which you can customise to suit your needs.
What are the features of the Bandhan Life iInvest Advantage Plan?
- Multiple investment strategies to match your financial goals.
- Access to a diverse range of funds tailored to your investment profile.
- Loyalty additions starting from the 15th policy year to enhance your overall returns.
- Refund of mortality charges at the time of maturity.
- Eligibility for tax benefits as per prevailing tax laws.
- Flexibility to switch between funds as per market conditions or changing goals.
- Option to receive the maturity benefit in instalments through the settlement option.
Who is eligible for the Bandhan Life iInvest Advantage Plan?
| Minimum | Maximum | |
| Entry Age | 3 months | 60 years |
| Maturity Age | 18 years | 75 years |
| Policy Term | 10 years (when the sum assured multiple is between 7 – 14) 15 years (when the sum assured multiple is between 15 – 20) |
40 years, subject to maximum maturity age |
| Premium | Annual Mode: ₹36,000 Half-Yearly Mode: ₹18,000 Quarterly mode: ₹9,000 Monthly Mode: ₹3,000 |
No limit, subject to Board-approved underwriting Policy. |
| Premium Pay Term | Premium paying term | Policy term |
| Sum Assured Multiple: 7 -10: 5, 7, 10 years – 39 years | 10 years – 40 years | |
| Sum Assured Multiple: 11-14: 7, 10 years – 39 years | 10 years – 40 years | |
| Sum Assured Multiple: 15-20: 7, 10 years – 39 years | 15 years – 40 years | |
| Top-up Premium | ₹ 5,000 | No limit, subject to Board-approved underwriting Policy. |
| Premium Payment Mode | Monthly, Quarterly, Half-Yearly & Annual. | |
| Base Sum Assured | 7 times of Annualised Premium | 20 times of Annualised Premium, subject to Board-approved Underwriting Policy |
| Top-up Sum assured | 1.25 times the Top-up Premium | |
What are the benefits of the Bandhan Life iInvest Advantage Plan?
1. Death Benefit
In case of death of the life assured during the Bandhan Life iInvest Advantage Plan policy term, provided the policy is in force as on the date of death, the company will pay the claimant the sum of base death benefit and top-up death benefit (if any), (as applicable on the date of intimation of the death of the life assured):
The base death benefit is the highest of: Base Fund Value or Base sum assured on death, where
The base sum assured on death is the highest of: Base Sum Assured and 105% of the premiums paid up to the date of death.
The top-up death benefit is the highest of the Top-Up Sum Assured and Top-Up Fund Value.
2. Maturity Benefit
On survival of life assured till the end of the policy term, provided all the premiums are paid and the policy is in force, the Total Fund Value would be paid as a lump sum amount.
The Bandhan Life iInvest Advantage Plan policyholder will also have an option to receive the maturity benefit as a systematic payout for a maximum of five years under the settlement option
Total Fund Value = Base Fund Value + Top-up Fund Value
Return of Mortality Charges: An amount equal to the total of mortality charges, which were deducted from the fund during the Bandhan Life iInvest Advantage Plan policy term, will be added back to the Base Fund Value and Top-up Fund Value (if any) at maturity, provided all due premiums have been received.
Loyalty Additions: Policyholder will receive loyalty units which will be added at the end 15th policy year and every 5th policy year thereafter till maturity.
| End of Policy Year | 15th year | 20th year | 25th year | 30th year | 35th year | 40th year |
| Loyalty Addition | 1.00% | 1.25% | 1.50% | 1.75% | 2.00% | 2.25% |
What are the investment strategies and fund options in the Bandhan Life iInvest Advantage Plan?
You have the option to choose from two portfolio strategies:
- Self-Managed Portfolio Strategy
- Lifestyle Portfolio Strategy
A. Self-Managed Portfolio Strategy
Under this portfolio strategy, you have the option to allocate your premium in any of the 9 segregated funds and tailor your investment approach to meet your financial objectives. The asset allocation under each segregated fund is provided in the table below.
You can choose one or more funds and, in any proportion (as %, in whole numbers) within the Self-managed Portfolio Strategy.
You will have to specify the premium allocation in each fund chosen.
| S.no | Fund Name | Asset Allocation | Risk Profile | ||
| Equities | Fixed Interest Securities | Money Market Instruments | |||
| 1 | Blue Chip Equity Fund | 80-100% | 0% | 0-20% | High |
| 2 | Accelerator Fund | 80-100% | 0% | 0-20% | High |
| 3 | Opportunity Fund | 80-100% | 0% | 0-20% | High |
| 4 | Stable Fund | 20-80% | 20-80% | Moderate | |
| 5 | Secure Fund | 0% | 60-100% | 0-40% | Low |
| 6 | Debt Fund | 0% | 60-100% | 0-40% | Moderate |
| 7 | Flexi Cap Fund | 65-100% | 0% | 0-35% | Very High |
| 8 | Liquid Fund | 0% | 0% | 100% | Low |
| 9 | Mid Cap Fund | 80-100% | 0% | 0-20% | Very High |
B. Lifestyle Portfolio Strategy
The Lifestyle Portfolio Strategy addresses the same by providing you with the right mix between Equity and Debt, based on the duration of your investment.
This helps you automatically decrease your exposure to Equity and increase your exposure to Debt as your age increases and your policy nears maturity.
Under this strategy, depending on the duration of your Bandhan Life iInvest Advantage Plan policy, the premium paid, subject to deduction of charges, if any, will be allocated between the 3 investment funds as per a pre-defined strategy as mentioned in the table below.
| Allocation in various Funds | |||
| Years to Maturity | Secure Fund | Debt Fund | Blue Chip Equity Fund |
| 40 | 0% | 0% | 100% |
| 39 to 11 | 0% | 0% | 100% |
| 10 | 0% | 10% | 90% |
| 9 | 0% | 20% | 80% |
| 8 | 0% | 30% | 70% |
| 7 | 0% | 40% | 60% |
| 6 | 0% | 50% | 50% |
| 5 | 0% | 60% | 40% |
| 4 | 0% | 70% | 30% |
| 3 | 10% | 70% | 20% |
| 2 | 30% | 60% | 10% |
| 1 | 40% | 60% | 0% |
What are the charges of the Bandhan Life iInvest Advantage Plan?
i. Premium Allocation Charges
Nil
ii. Fund Management Charge (FMC)
iii. Policy Administration Charge
No charge
iv. Mortality Charge
This charge is deducted by cancellation of units at the prevailing Unit Price at the beginning of every policy month as 1/12th of the Annual Mortality Charge. It will depend on your age and the sum at risk, which is the base death benefit in excess of Base Fund Value
v. Discontinuance/Surrender Charge
This charge will depend on the year in which the policy was discontinued. This charge is deducted by cancellation of Units at the prevailing Unit Price.
Inference from the charge: These charges are applied throughout the Bandhan Life iInvest Advantage Plan policy term, reducing your invested amount and thereby lowering your overall returns in the long run.
Grace Period, Discontinuance and Revival of the Bandhan Life iInvest Advantage Plan
Grace Period
Grace period is a period of 15 days for monthly premium payment frequency and 30 days for all other frequencies, from the due date for payment of policy premium.
Discontinuance
Discontinuance Of Premium During Lock-In Period of the Policy: transfer the Total Fund Value by creation of units into the Discontinuance Policy Fund after deducting applicable discontinuance/surrender charges.
The risk cover and rider cover, if any, will terminate on the date of discontinuance. No further charges will be levied by us other than the fund management charge applicable to the Discontinuance Policy Fund.
At the end of the lock-in period, the proceeds of the Discontinuance Policy Fund shall be paid to the policyholder, and the Bandhan Life iInvest Advantage Plan policy shall terminate.
Discontinuance Of Premium After Lock-In Period of the Policy: The policy will be converted into a reduced paid-up policy with the paid-up sum assured, i.e. (original sum assured) multiplied by a ratio of the total period for which premiums have already been paid to the maximum period for which premiums were originally payable.
Revival
You can revive the lapsed or paid-up policy within 3 consecutive years from the due date of the first unpaid premium and before the expiry of the Bandhan Life iInvest Advantage Plan policy term.
Free Look Period for the Bandhan Life iInvest Advantage Plan
Free Look means a period of thirty (30) days from the date of receipt of the policy, to review the terms and conditions of the policy, where if you disagree with any of the terms and conditions, you have the option to return the policy stating the reasons for objection.
Surrendering the Bandhan Life iInvest Advantage Plan
If the policy is surrendered during the Lock-in Period: The Total Fund Value less the Discontinuance/ Surrender Charge will be transferred to the Discontinuance Policy Fund.
Proceeds of the Discontinuance Policy Fund will be payable to the Bandhan Life iInvest Advantage Plan policyholder as surrender value at the end of the lock-in period.
If the policy is surrendered after the completion of the Lock-in Period: The Surrender Value payable to the policyholder will be the Total Fund Value as on the date of surrender
What are the advantages of the Bandhan Life iInvest Advantage Plan?
- Switching from the Lifestyle Portfolio Strategy to the Self-Managed Portfolio Strategy is permitted once every policy year, at any time during the policy term, without any charge.
- The policyholder can make Top-up Premium payments to enhance the fund value.
- Partial withdrawals from the fund value are allowed after completing the first 5 policy years.
- Under the Settlement Option, the maturity benefit can be received in structured instalments over a chosen period (not exceeding 5 years from the maturity date).
- The plan allows flexibility to modify the Premium Paying Term, reduce the premium, and switch between funds.
- You can also change the premium allocation proportions across various segregated funds as per your investment preferences.
What are the disadvantages of the Bandhan Life iInvest Advantage Plan?
- Policy loans are not permitted under this plan.
- No liquidity is provided during the early years of the policy.
- The sum assured might be inadequate to meet significant financial needs.
- Investments are based on the net premium, calculated after deducting applicable charges.
Research Methodology of Bandhan Life iInvest Advantage Plan
Since the plan is linked to market performance, evaluating its potential returns becomes crucial.
This section examines the investment component of the Bandhan Life iInvest Advantage Plan to understand how it performs and how it compares with other investment options.
The following Internal Rate of Return (IRR) analysis is derived from the figures provided in the Bandhan Life iInvest Advantage Plan policy brochure.
Benefit Illustration – IRR Analysis of Bandhan Life iInvest Advantage Plan
Let’s consider a 35-year-old male who purchases the plan with a sum assured of ₹10 lakhs, a policy term of 20 years, and a premium payment term of 10 years, paying an annual premium of ₹1 lakh.
| Male | 35 years |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
Assuming consistent premium payments, the policy brochure projects the potential fund value at two assumed growth rates — 4% and 8%.
These projections are purely illustrative and not guaranteed, as the actual maturity value depends on multiple factors, including fund performance and market conditions.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 36 | 2 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 37 | 3 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 38 | 4 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 39 | 5 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 40 | 6 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 41 | 7 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 42 | 8 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 43 | 9 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 44 | 10 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 45 | 11 | 0 | 10,00,000 | 0 | 10,00,000 |
| 46 | 12 | 0 | 10,00,000 | 0 | 10,00,000 |
| 47 | 13 | 0 | 10,00,000 | 0 | 10,00,000 |
| 48 | 14 | 0 | 10,00,000 | 0 | 10,00,000 |
| 49 | 15 | 0 | 10,00,000 | 0 | 10,00,000 |
| 50 | 16 | 0 | 10,00,000 | 0 | 10,00,000 |
| 51 | 17 | 0 | 10,00,000 | 0 | 10,00,000 |
| 52 | 18 | 0 | 10,00,000 | 0 | 10,00,000 |
| 53 | 19 | 0 | 10,00,000 | 0 | 10,00,000 |
| 54 | 20 | 0 | 10,00,000 | 0 | 10,00,000 |
| 55 | 14,62,165 | 26,51,467 | |||
| IRR | 2.47% | 6.38% | |||
At 4% returns, the fund value is ₹14.62 lakhs, resulting in an IRR of 2.47% as per the Bandhan Life iInvest Advantage Plan maturity calculator, which is even lower than a basic savings account interest rate.
At 8% returns, the fund value rises to ₹26.51 lakhs, giving an IRR of 6.38% as per the Bandhan Life iInvest Advantage Plan maturity calculator, roughly comparable to or lower than the returns from a bank fixed deposit.
Despite being marketed as a long-term market-linked investment, the plan’s returns remain modest, limiting its wealth creation potential.
While equity-oriented market instruments tend to generate better long-term growth, this plan falls short of delivering meaningful value.
In conclusion, sub-par returns, restricted liquidity, and an inadequate sum assured make the Bandhan Life iInvest Advantage Plan unsuitable for inclusion in your investment portfolio.
Bandhan Life iInvest Advantage Plan Vs. Other Investments
The Bandhan Life iInvest Advantage Plan falls short on two key fronts — it neither offers inflation-beating returns nor provides an adequate sum assured.
Combining insurance and investment in a single product often results in compromised performance on both sides, and this plan is no exception.
Let’s explore a more effective strategy — one that separates insurance from investment to optimise both protection and returns.
Bandhan Life iInvest Advantage Plan Vs. Pure-term + PPF/Equity Mutual Fund
You purchase a pure-term life insurance policy with a sum assured of ₹10 lakhs, paying an annual premium of ₹7,500 for 20 years, with a premium payment term of 10 years.
This leaves you with ₹92,500 each year to invest based on your risk appetite.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 7,500 |
| Investment | ₹ 92,500 |
Low-Risk Approach:
If you invest ₹92,500 annually in a Public Provident Fund (PPF), the maturity value after 20 years is ₹27.29 lakhs, delivering an IRR of 6.58%.
Interestingly, this is comparable to the 8% scenario of the Bandhan Life iInvest Advantage Plan — yet PPF is a safer, government-backed debt instrument.
| Term Insurance + PPF | Term insurance + Equity Mutual Fund | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 36 | 2 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 37 | 3 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 38 | 4 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 39 | 5 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 40 | 6 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 41 | 7 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 42 | 8 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 43 | 9 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 44 | 10 | -97,500 | 10,00,000 | -1,00,000 | 10,00,000 |
| 45 | 11 | -500 | 10,00,000 | 0 | 10,00,000 |
| 46 | 12 | -500 | 10,00,000 | 0 | 10,00,000 |
| 47 | 13 | -500 | 10,00,000 | 0 | 10,00,000 |
| 48 | 14 | -500 | 10,00,000 | 0 | 10,00,000 |
| 49 | 15 | -500 | 10,00,000 | 0 | 10,00,000 |
| 50 | 16 | 0 | 10,00,000 | 0 | 10,00,000 |
| 51 | 17 | 0 | 10,00,000 | 0 | 10,00,000 |
| 52 | 18 | 0 | 10,00,000 | 0 | 10,00,000 |
| 53 | 19 | 0 | 10,00,000 | 0 | 10,00,000 |
| 54 | 20 | 0 | 10,00,000 | 0 | 10,00,000 |
| 55 | 27,29,733 | 50,72,011 | |||
| IRR | 6.58% | 10.74% | |||
High-Risk Approach:
If you invest the same amount in an equity mutual fund, the pre-tax maturity value could reach ₹56.46 lakhs. After accounting for capital gains tax, the post-tax maturity value stands at ₹50.72 lakhs, yielding an impressive IRR of 10.74%.
Equity mutual funds, while market-linked, provide superior risk-adjusted returns, liquidity, and freedom from lock-ins.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 20 years | 56,46,584 |
| Purchase price | 9,25,000 |
| Long-Term Capital Gains | 47,21,584 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 45,96,584 |
| Tax paid on LTCG | 5,74,573 |
| Maturity value after tax | 50,72,011 |
In contrast, the Bandhan Life iInvest Advantage Plan lacks both flexibility and high return potential.
Hence, separating insurance and investment — through a pure-term plan plus tailored investment portfolio — proves to be a far more efficient and rewarding strategy for long-term financial growth.
Final Verdict on Bandhan Life iInvest Advantage Plan
The Bandhan Life iInvest Advantage Plan is a standard Unit-Linked Insurance Plan (ULIP) that combines life insurance coverage with market-linked investment opportunities.
You pay premiums for a limited period, and at maturity, you receive the fund value along with return of mortality charges and loyalty additions.
However, a deeper evaluation uncovers major shortcomings — primarily its low return potential.
The high charges associated with this ULIP significantly erode investment growth, leading to subpar returns and restricting long-term wealth creation and it also has a high agent commission.
Moreover, the inadequate sum assured further diminishes its value as a comprehensive financial solution. By blending insurance and investment, the plan ultimately compromises on both protection and performance.
A more efficient approach would be to separate insurance from investment. Safeguard your family’s financial security through a pure-term life insurance policy, which offers substantial coverage at a minimal cost.
Then, direct your savings into investment products that align with your risk appetite and financial goals — such as equity or hybrid mutual funds.
To build a robust and inflation-adjusted corpus, your investment portfolio should include higher-yielding instruments that match your long-term objectives.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
Always evaluate a product’s potential returns, costs, and flexibility before investing. And if you are unsure about choosing the right mix, consider consulting a Certified Financial Planner (CFP) for personalised, goal-based financial guidance.
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