Bandhan Life iInvest II

What is Bandhan Life iInvest II?

Bandhan Life iInvest II is a Unit-Linked Non-Participating Individual Life Insurance Savings Plan. In this policy, the investment risk in the investment portfolio is borne by the policyholder. It does not offer any liquidity during the first five years of the contract, meaning the policyholder cannot surrender or withdraw monies invested in the unit-linked insurance product completely or partially until the end of the fifth policy year.

Features of Bandhan Life iInvest II

• Insurance and Wealth Creation: Provides insurance coverage while creating wealth.

• Return of Charges: Mortality charges are returned at maturity, and allocation charges (as applicable) are returned at the end of the 10th policy year.

• Loyalty Additions: Starting from the 15th policy year, loyalty additions boost returns.

• Investment Choice: Offers a choice of investment strategies to suit investment needs and a wide range of funds to suit investment profiles.

• Fund Flexibility: Allows switching between funds.

• Settlement Option: Provides the choice of receiving maturity payouts in installments.

• Tax Benefits: Policy is eligible for tax benefits as per prevailing tax laws.

• Optional Flexibilities: Switching between portfolio strategies, top-up premiums, liquidity through partial withdrawal, settlement option, change in premium payment term, reduction in premium, premium redirection, and switching between funds.

Eligibility Criteria of Bandhan Life iInvest II

Benefits of Bandhan Life iInvest II

• Death Benefit: On the death of the life assured during the policy term, the claimant will receive the sum of the base death benefit and top-up death benefit (if any), provided the policy is in force.

  • The base death benefit is the highest of the Base Fund Value or Base Sum Assured on death.

  • Base Sum Assured on death is the highest of Base Sum Assured and 105% of the premiums paid up to the date of death.

  • Top-up death benefit is the highest of Top-Up Sum Assured and Top-Up Fund Value.

• Maturity Benefit: On survival of the life assured until the end of the policy term, the total fund value applicable on the date of maturity will be paid as a lump sum amount. The policyholder has the option to receive the maturity benefit as a systematic payout for a maximum of five years under the settlement option.

  • Total fund value includes return of mortality charges, return of premium allocation charges (if applicable), and loyalty additions.

• Return of Mortality Charges: An amount equal to the total of mortality charges including the extra mortality charges (excluding taxes) if any, which were deducted from the fund during the 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.

• Return of Premium Allocation Charges (if applicable): An amount equal to total of premium allocation charges deducted from the base premium (excluding taxes) during the policy term will be added back to the Base Fund value at the end of the 10th policy year in the same proportion as the value of the total units held in each fund at the time of allocation provided all the due premiums have been received. Allocation charges pertaining to Top-up Premium will not be refunded.

• Loyalty Additions: The policyholder will receive loyalty units starting from the end of the 15th policy year and every 5th policy year thereafter until maturity.

• Investment Options and Portfolio Strategies: Option to choose between a Self-Managed Portfolio Strategy and a Lifestyle Portfolio Strategy.

Additional Policy Details of Bandhan Life iInvest II

• Investment Strategies:

  • Self-Managed Portfolio Strategy: Allows policyholders to allocate premiums across 9 segregated funds to meet financial objectives.

  • Lifestyle Portfolio Strategy: Automatically adjusts the mix between Equity and Debt based on the policy duration.

• Top-Up Premiums: Policyholder has the option of paying Top-up Premium anytime except during the last 5 policy years besides base premium payments.

• Partial Withdrawal: Available after the first 5 policy years, allowing withdrawal of money from the fund value.

• Settlement Option: Maturity benefit can be received in structured payouts over a period not exceeding 5 years from the maturity date.

• Premium Redirection: Allows the policyholder to change the premium proportions in various segregated Funds. This facility is only applicable for Self-Managed Portfolio Strategy and will be processed free of charge in any policy year.

• Switching between Funds: The policyholder can use this facility to transfer their existing investment from one unit linked fund to another within the Self-Managed Portfolio Strategy. There is no restriction on the number of switches policyholders can make and all switches will be free of charge.

• Change in Premium Payment Term: This option allows the policyholder to change the premium payment term (PPT) subject to the available sum assured multiple, premium payment term and policy term in his/her policy any time after the payment of first 5 policy years' full premium and provided all due premiums have been paid till date. To avail this facility, the policyholder must intimate the company at least 90 days prior to the due date of last installment premium during the premium payment term. The PPT can be changed only for limited pay policies. The sum assured multiple and the policy term shall remain the same as selected at inception of the policy.

Exclusions Under Bandhan Life iInvest II

• Suicide Exclusion: If death occurs due to suicide within 12 months from the date of commencement of risk or from the date of revival of the policy, the nominee or beneficiary will be entitled to the total fund value available on the date of intimation of death.

• Restrictions on withdrawals and surrenders: The Unit Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender/withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of the fifth policy year.