When it comes to securing your family’s financial future, term insurance is one of the most effective and affordable tools. Among the most popular insurers in India, LIC (Life Insurance Corporation of India) and HDFC Life are two giants known for their reliable term plans.
But when you compare LIC vs HDFC Life for term insurance, which one is better for you?
This article breaks it down in simple terms to help you make an informed decision.
🛡️ What is a Term Insurance Plan?
A term plan is a pure life insurance policy. It provides financial protection to your loved ones in case of your untimely death during the policy term. These plans do not offer maturity benefits, which makes them affordable and high coverage options.
🔍 Why Compare LIC and HDFC Life?
Both LIC and HDFC Life offer term insurance plans with:
- Large sum assured options (up to ₹1–2 crore or more)
- Flexible premium payment terms
- Claim settlement support
- Tax benefits under Section 80C and 10(10D)
But there are key differences in features, pricing, claim process, and customer experience.
🏆 LIC vs HDFC Life Term Plans: Quick Comparison
| Feature | LIC Tech Term Plan | HDFC Life Click 2 Protect Super |
|---|---|---|
| Sum Assured | ₹50 lakh to ₹2 crore+ | ₹50 lakh to ₹10 crore |
| Entry Age | 18 – 65 years | 18 – 65 years |
| Policy Term | 10 – 40 years | 5 – 85 years (till age 99) |
| Claim Settlement Ratio (FY 2022–23) | 98.52% | 99.39% |
| Medical Test | Required (in most cases) | Required (in most cases) |
| Premium (₹1 Cr SA, 30 yrs, 25 yrs term) | Approx. ₹13,000/year | Approx. ₹10,500/year |
| Riders | Accidental Death, Disability | Accidental Death, Waiver of Premium, Income Benefit |
| Online Application | Yes | Yes |
Note: Premiums and features vary based on age, health, smoking habits, etc.
💰 Premium Comparison Example (Non-Smoker, Age 30)
- LIC Tech Term (₹1 crore cover for 30 years): ₹13,500 per year
- HDFC Click 2 Protect Super (Same criteria): ₹10,800 per year
👉 Verdict: HDFC Life is more budget-friendly for younger, healthy individuals.
✅ Key Benefits of LIC Term Plan
- Trusted Brand: LIC is India’s oldest and most trusted life insurer.
- High Claim Settlement: LIC is known for hassle-free claim payouts.
- Offline & Online Access: Available through agents and online.
- Strong Rural Reach: Ideal for families in non-metro areas.
✅ Key Benefits of HDFC Life Term Plan
- More Customization: Offers multiple options like income payouts, increasing sum assured, etc.
- Cheaper Premiums: Generally lower than LIC for the same coverage.
- Advanced Features: Flexible policy terms, optional riders, and cover up to age 99.
- Better Digital Experience: Smooth online purchase and tracking process.
🔄 Which One Should You Choose?
| You Should Choose | If You Want… |
|---|---|
| LIC Tech Term | Trust, simplicity, brand reliability, offline support |
| HDFC Life | Custom plans, lower premiums, digital purchase, add-on riders |
🔗 Internal Link Suggestion:
👉 Read more: How to Choose the Best Term Insurance Plan in India – 2025 Guide
🌐 External Link Suggestion:
👉 Compare plans on IRDAI’s Official Website
🙋 Frequently Asked Questions (FAQs)
Q1. Which insurer has a better claim settlement ratio?
HDFC Life has a slightly higher claim settlement ratio (~99.39%) compared to LIC (~98.52%).
Q2. Which is cheaper: LIC or HDFC Life?
HDFC Life generally offers lower premiums for similar coverage, especially for young and healthy individuals.
Q3. Can I buy both LIC and HDFC term plans?
Yes, you can hold multiple term insurance policies from different insurers if you meet the eligibility criteria.
Q4. Is LIC a government company?
Yes, LIC is a government-owned life insurance provider, while HDFC Life is a private sector company.
Q5. Can I increase my sum assured later?
Most plans allow you to increase your coverage through riders or during major life events like marriage or childbirth.
🧠 Final Thoughts
When it comes to LIC vs HDFC Life, the best term plan really depends on your priorities:
- Want legacy and trust? 👉 Go with LIC.
- Want affordability and features? 👉 Choose HDFC Life.
Regardless of the provider, having term insurance is a smart and necessary step in protecting your family’s future.
So compare well, read the fine print, and secure your peace of mind today.
Last Updated on August 6, 2025 by Singh Sumit
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