Bandhan Life ULIP Plus Plan Review: Features, Benefits & IRR Analysis

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Is Bandhan Life’s ULIP Plus Plan really the “plus factor” in wealth and protection — or just another ULIP with marketing dazzle?

Is Bandhan Life’s ULIP Plus Plan a compelling alternative to mutual funds + term insurance — or do the charges and lock-in drag its real return potential?

Is Bandhan Life ULIP Plus Plan your gateway to “market-linked security” — or just another hybrid product that might struggle when markets disappoint?

In this review, we’ll explore its features, benefits, and drawbacks in detail, along with illustrative examples to help you make an informed decision.

What is the Bandhan Life ULIP Plus?

Bandhan Life ULIP Plus is a Unit-Linked Non-Participating Individual Life Insurance Savings Plan. It integrates life insurance with market-linked investment opportunities.

Whether you’re planning for your dream home or a comfortable retirement, Bandhan Life ULIP Plus helps you secure your future and grow your wealth.

What are the features of the Bandhan Life ULIP Plus?

Return of Charges: Allocation Charges (as applicable) are refunded at the end of the 10th policy year, and up to 3 times the Mortality Charges are returned from the 11th policy year onwards.
Loyalty Additions: Added from the 7th policy year to enhance your overall returns.
Women Advantage: Enjoy a special discount on allocation charges for women policyholders.
Investment Flexibility: Choose from five investment strategies tailored to your financial goals.
Liquidity Option: Create a secondary income stream through partial withdrawals.
Tax Benefits: Eligible for tax advantages as per the prevailing tax laws.

Who is eligible for the Bandhan Life ULIP Plus?

	Minimum	Maximum
Entry Age	18 years	55 years
Maturity Age	38 years	85 years
Policy Term	20 years	40 years, subject to maximum maturity age
Premium	SAM<40	No limit, subject to Board-approved underwriting Policy.
	Annual Mode: ₹75,000
	Other than annual mode: ₹ 1,00,000
	SAM>=40
	Annual Mode: ₹1,00,000
	Other than annual mode: ₹ 1,20,000
Premium Pay Term	Limited Pay: 5 / 7 / 10 / 12 / 15/ 20/ 25 /30 /35 yearsRegular Pay: Premium payment term is the same as policy term
Top-up Premium	₹ 5,000	No limit, subject to Board-approved underwriting Policy.
Premium Payment Mode	Monthly, Quarterly, Half-Yearly & Annual.
Base Sum Assured	21 times of Annualised Premium	50 times of Annualised Premium, subject to Board-approved Underwriting Policy
Top-up Sum assured	1.25 times of Top-up Premium or 10 times of Top-up Premium

What are the benefits of the Bandhan Life ULIP Plus?

1. Death Benefit

In case of death of the life assured during the Bandhan Life’s ULIP Plus 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).

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 (excluding top-up premium) 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’s ULIP Plus 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:

The plan shall return mortality charges starting from the 11th policy year, if all due premiums have been paid in full and the policy is in force

Return of Premium Allocation Charges (if applicable)

An amount equal to the total of premium allocation charges deducted during the Bandhan Life’s ULIP Plus Plan policy term will be added back to the Base Fund value at the end of the 10th policy year, provided all the due premiums have been received.

Loyalty Additions:

Loyalty units will be added from the end of the 7th policy year and thereafter at the end of each policy year (percentage varies for each year), till maturity.

What are the investment strategies and fund options in the Bandhan Life ULIP Plus?

You have the option to choose from the following portfolio strategies:

Self-Managed Portfolio Strategy
Lifestyle Portfolio Strategy
Target Asset Allocation Strategy
Automatic Transfer Strategy
Stabilised Gains 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 number), 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 Bandhan Life’s ULIP Plus Plan policy nears maturity.

Under this strategy, depending on the duration of your 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%

C. Target Asset Allocation Strategy

Under this strategy, you can allocate your premiums between any two segregated funds available with this Policy, in the proportion of your choice. Your portfolio will be rebalanced every quarter to ensure that this asset allocation is maintained.

The rebalancing of units shall be done on the last day of each Policy quarter. If the last day of the quarter is a non-working day, then the next working day’s NAV will be applicable.

D. Automatic Transfer Strategy

Under this strategy, you may invest your premium in any of the available Debt-Oriented Funds (i.e., Debt Fund, Secure Fund, or Liquid Fund), and systematically transfer a fixed amount every month into any one of the Equity-Oriented Funds (i.e., Blue Chip Equity Fund, Opportunity Fund, Accelerator Fund, Flexi Cap Fund, or Mid Cap Fund).

The total Annual Premium net of Premium Allocation Charges (if any) will be invested in the chosen Debt-Oriented Fund. The Units in the chosen Debt-Oriented Fund will then be systematically transferred in equal instalments on a monthly basis to the selected Equity-Oriented Fund.

E. Stabilised Gains portfolio strategy

Under this option, the Premium, after deducting the Premium Allocation Charges, shall be allocated and invested in the Accelerator Fund.

The Fund Value will be tracked on a daily basis. If the Fund Value in the Accelerator Fund appreciates by 10% or more of the net invested amount, the amount corresponding to such appreciation shall be transferred from the Accelerator Fund to the Debt Fund at the prevailing unit price effective on the date the appreciation threshold is met.

If it does not achieve an appreciation of 10% or more relative to the net invested amount, the Fund Value shall remain fully invested in the Accelerator Fund.

What are the charges of the Bandhan Life ULIP Plus?

i. Premium Allocation Charge

The premium allocation charge (as a % of annualised premium) is deducted from the premium amount at the time of premium payment, and units are allocated in the chosen fund thereafter.

First 5 years – Annual mode -6% and other modes -5%
6^th year onwards – NIL
Top-up Premium – 2%

ii. Fund Management Charge (FMC)

S.no	Fund Name	Fund Management Charge (FMC)
1	Blue Chip Equity Fund	1.35%
2	Accelerator Fund	1.35%
3	Opportunity Fund	1.35%
4	Stable Fund	1.35%
5	Secure Fund	1.00%
6	Debt Fund	1.10%
7	Flexi Cap Fund	1.35%
8	Liquid Fund	0.50%
9	Mid Cap Fund	1.35%
	Discontinued Policy fund	0.50%

iii. Policy Administration Charge

This charge shall represent the expenses other than those covered by the Premium Allocation Charge and the Fund management charge.

This charge is levied at the beginning of each Policy month from the Unit Fund by cancelling Units for an equivalent amount

First 5 policy years – 1.08% p.a.
From 6^th year till the end of the policy term – 4.50% p.a.
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 the Base Fund Value

iv. 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 Charges: Compared to other market-linked investment options, the charges under this plan are significantly higher and are levied throughout the Bandhan Life’s ULIP Plus Plan policy term.

These recurring deductions reduce the effective investment amount, thereby lowering your overall returns over the long run.

Grace Period, Discontinuance and Revival of the Bandhan Life ULIP Plus

Grace Period

Grace period is a period of 15 days for the 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 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’s ULIP Plus Plan policy term.

Free Look Period for the Bandhan Life ULIP Plus

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 ULIP Plus

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 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 ULIP Plus?

Top-up Option: Enhance your investment by paying Top-up Premiums.
Liquidity Options: Access funds through Partial Withdrawals, with the choice of:
1. Systematic Partial Withdrawal
2. Retirement Income Plan
3. Chosen-rate Withdrawal Plan
Settlement Option: Receive your maturity benefit as structured payouts over a chosen period (up to 5 years from the maturity date).
Policy Flexibility: Modify your Premium Paying Term, reduce your Premium, or adjust the Sum Assured Multiple (SAM) as per your needs.
Fund Management Flexibility: Change premium allocation proportions across various funds and switch between funds anytime based on your investment strategy.

What are the disadvantages of the Bandhan Life ULIP Plus?

No Loan Facility: The plan does not offer any loan provision.
Risk-Return Imbalance: The returns are not commensurate with the level of risk involved.
Inadequate Coverage: The sum assured may not be sufficient to meet your family’s financial needs.
Charge Refund Limitation: Although certain charges are refunded, the time value of money is not factored in, reducing the actual benefit.

Research Methodology of Bandhan Life ULIP Plus

This section evaluates the potential returns of the Bandhan Life ULIP Plus Plan. Since the plan invests in market-linked funds, it carries a certain level of risk — and ideally, the returns should justify that risk.

Let’s examine whether the plan delivers on that expectation using the benefit illustration provided in the Bandhan Life’s ULIP Plus Plan policy brochure.

Benefit Illustration – IRR Analysis of Bandhan Life ULIP Plus

A 35-year-old male invests in the Bandhan Life ULIP Plus Plan with a Sum Assured of ₹30 Lakhs. The Policy Term is 25 years, and the Premium Paying Term is 10 years.

The Annual Premium is ₹1 Lakh. The fund value at the end of 25 years is payable as the maturity benefit.

Male	30 years
Sum Assured	₹ 30,00,000
Policy Term	25 years
Premium Paying Term	10 years
Annualised Premium	₹ 1,00,000

As per the illustration, the Projected Investment Rate of Return (PIRR) is assumed at 4% p.a. and 8% p.a. These projections are not guaranteed, as the actual value depends on multiple factors, including market performance and fund management.

		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	30,00,000	-1,00,000	30,00,000
36	2	-1,00,000	30,00,000	-1,00,000	30,00,000
37	3	-1,00,000	30,00,000	-1,00,000	30,00,000
38	4	-1,00,000	30,00,000	-1,00,000	30,00,000
39	5	-1,00,000	30,00,000	-1,00,000	30,00,000
40	6	-1,00,000	30,00,000	-1,00,000	30,00,000
41	7	-1,00,000	30,00,000	-1,00,000	30,00,000
42	8	-1,00,000	30,00,000	-1,00,000	30,00,000
43	9	-1,00,000	30,00,000	-1,00,000	30,00,000
44	10	-1,00,000	30,00,000	-1,00,000	30,00,000
45	11	0	30,00,000	0	30,00,000
46	12	0	30,00,000	0	30,00,000
47	13	0	30,00,000	0	30,00,000
48	14	0	30,00,000	0	30,00,000
49	15	0	30,00,000	0	30,00,000
50	16	0	30,00,000	0	30,00,000
51	17	0	30,00,000	0	30,00,000
52	18	0	30,00,000	0	30,00,000
53	19	0	30,00,000	0	30,00,000
54	20	0	30,00,000	0	30,00,000
55	21	0	30,00,000	0	30,00,000
56	22	0	30,00,000	0	30,00,000
57	23	0	30,00,000	0	30,00,000
58	24	0	30,00,000	0	30,00,000
59	25	0	30,00,000	0	30,00,000
60		16,76,661		34,66,326

	IRR	2.54%		6.18%

At 4% p.a., the fund value is ₹16.76 Lakhs, yielding an IRR of 2.54% as per the Bandhan Life’s ULIP Plus Plan maturity calculator— lower than even a savings bank account.

At 8% p.a., the fund value is ₹34.66 Lakhs, translating to an IRR of 6.18% as per the Bandhan Life’s ULIP Plus Plan maturity calculator— which is still below average fixed deposit returns.

In both scenarios, the returns are not proportionate to the market risk involved. Moreover, the returns fail to beat inflation, meaning the plan does not effectively support long-term wealth accumulation.

Considering the low returns, liquidity restrictions, and inadequate life cover, the Bandhan Life ULIP Plus Plan does not stand out as a suitable investment option for your portfolio.

Bandhan Life ULIP Plus Vs. Other Investments

Market-linked alternatives such as mutual funds often generate better returns than ULIPs.

To understand this better, let’s compare the Bandhan Life ULIP Plus Plan with a more efficient combination of products using the same parameters as in the earlier illustration.

Instead of combining insurance and investment under one plan, let’s separate the two components for better transparency and efficiency.

Bandhan Life ULIP Plus Vs. Pure-term + Equity Mutual Fund

Life Cover: A pure term insurance policy offering a ₹30 lakh sum assured would cost around ₹21,700 per year.

This leaves a balance of ₹78,300, which can be invested according to your goals and risk appetite. Let’s assume this remaining amount is invested in an equity mutual fund.

Pure Term Life Insurance Policy
Sum Assured	₹ 30,00,000
Policy Term	25 years
Premium Paying Term	10 years
Annualised Premium	₹ 21,700
Investment	₹ 78,300

Now, comparing the outcomes over the same 25-year period:

		Term insurance + Equity Mutual Fund
Age	Year	Term Insurance premium + Equity Mutual Fund	Death benefit
35	1	-1,00,000	30,00,000
36	2	-1,00,000	30,00,000
37	3	-1,00,000	30,00,000
38	4	-1,00,000	30,00,000
39	5	-1,00,000	30,00,000
40	6	-1,00,000	30,00,000
41	7	-1,00,000	30,00,000
42	8	-1,00,000	30,00,000
43	9	-1,00,000	30,00,000
44	10	-1,00,000	30,00,000
45	11	0	30,00,000
46	12	0	30,00,000
47	13	0	30,00,000
48	14	0	30,00,000
49	15	0	30,00,000
50	16	0	30,00,000
51	17	0	30,00,000
52	18	0	30,00,000
53	19	0	30,00,000
54	20	0	30,00,000
55	21	0	30,00,000
56	22	0	30,00,000
57	23	0	30,00,000
58	24	0	30,00,000
59	25	0	30,00,000
60		74,84,120

	IRR	10.11%

The pre-tax maturity value from the equity mutual fund is ₹84.23 lakhs. After accounting for capital gains tax, the post-tax maturity value stands at ₹74.84 lakhs.

The post-tax IRR for this term insurance + mutual fund combination works out to 10.11%. This return not only beats inflation but also enables faster wealth accumulation over the long term.

Equity Mutual Fund Tax Calculation
Maturity value after 25 years	84,23,565
Purchase price	7,83,000
Long-Term Capital Gains	76,40,565
Exemption limit	1,25,000
Taxable LTCG	75,15,565
Tax paid on LTCG	9,39,446
Maturity value after tax	74,84,120

In contrast, the Bandhan Life ULIP Plus Plan delivers much lower returns despite involving market risk. Hence, separating insurance and investment proves to be a more rewarding and efficient strategy for building wealth.

Final Verdict on the Bandhan Life ULIP Plus

As the name suggests, Bandhan Life ULIP Plus is a Unit-Linked Insurance Plan (ULIP) that combines life insurance coverage with a market-linked investment component.

However, the product comes with high charges compared to other market-linked investment options. Although some charges are refunded later, the time value of money is ignored — meaning the refund doesn’t truly compensate for the impact of these deductions.

Since only the net premium (after charges) is invested, your long-term returns are adversely affected.

An analysis of the benefit illustration clearly shows that the returns are low for an equity-linked product, and the risk–return balance is not proportionate and it also has a high agent commission.

Investing in the Bandhan Life ULIP Plus Plan can slow down your wealth accumulation, potentially leaving you short of your financial goals, especially when you factor in inflation.

A more effective approach is to separate insurance and investment.

For life protection, opt for a pure term life insurance policy, which offers adequate coverage at a lower cost.
For wealth creation, channel your savings into better-yielding investment products like mutual funds that align with your goals and risk tolerance.

Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?

Before finalising any investment, always evaluate the risk and return potential. If you’re unsure about how to analyse a product, consult a qualified financial advisor.

They can assess your current financial position and recommend investments best suited to your risk profile and future goals.

Bandhan Life ULIP Plus Plan: Good or Bad? A Detailed ULIP Review

Table of Contents:

What is the Bandhan Life ULIP Plus?

What are the features of the Bandhan Life ULIP Plus?

Who is eligible for the Bandhan Life ULIP Plus?