When it comes to securing your family’s future, choosing the right term insurance plan is crucial. Two of the biggest players in the Indian insurance market—LIC (Life Insurance Corporation of India) and HDFC Life—offer competitive term insurance plans. But which one is better for you in 2025?
In this detailed LIC vs HDFC term plan comparison, we’ll break down their features, benefits, premiums, claim settlement ratios, rider options, and more. Whether you’re looking at LIC Tech Term vs HDFC Click 2 Protect Life, or just want to compare LIC and HDFC term plans, this guide will help you make an informed decision.
🛡️ What Is a Term Insurance Plan?
A term insurance plan is a pure life insurance product that offers financial protection to your family in case of your untimely death. It comes with:
Affordable premiums
High sum assured
No maturity benefit (unless return of premium option is chosen)
Both LIC and HDFC offer online term insurance policies tailored to different life stages and needs.
🧭 LIC vs HDFC Term Plan Comparison – Quick Overview
| Feature | LIC Tech Term | HDFC Click 2 Protect Life |
|---|---|---|
| Plan Type | Pure term plan (online) | Comprehensive term plan |
| Entry Age | 18 to 65 years | 18 to 65 years |
| Maximum Maturity Age | 80 years | 85 years |
| Policy Term | 10 – 40 years | 5 – 85 years |
| Minimum Sum Assured | ₹50 Lakhs | ₹25 Lakhs |
| Premium Payment Options | Regular / Single / Limited | Regular / Single / Limited |
| Claim Settlement Ratio (2023) | 98.52% | 99.39% |
| Riders Available | Accidental Death Benefit | Accidental Death, Critical Illness, Waiver Rider |
| Return of Premium Option | No | Optional |
| Online Purchase Available | Yes | Yes |
🧩 LIC Term Plan Comparison with HDFC: Key Features
1. Policy Flexibility
LIC Tech Term is a pure protection plan with no frills—ideal for those who want simple, high-coverage insurance at low cost.
HDFC Click 2 Protect Life, on the other hand, offers multiple plan options:
Life Option
Life + CI Rebalance Option (includes critical illness cover)
Income Plus Option (monthly income benefit)
Verdict: If you need flexible plan types or want built-in critical illness benefits, HDFC wins.
2. Premium Comparison: LIC vs HDFC Term Plan Premium Comparison
Let’s compare annual premiums for a 30-year-old non-smoker male, looking for ₹1 Crore sum assured for a 30-year term.
| Plan Name | Annual Premium (Approx) |
|---|---|
| LIC Tech Term | ₹11,200 – ₹12,000 |
| HDFC Click 2 Protect Life | ₹10,500 – ₹11,800 |
Premiums may vary based on health, rider selection, and payment frequency. Use a term insurance premium calculator for precise estimates.
Verdict: HDFC offers slightly lower premiums for similar coverage with more customization.
3. Claim Settlement Ratio: Trustworthiness of Insurer
As per IRDAI term insurance guidelines (Annual Report 2023):
LIC’s claim settlement ratio: 98.52%
HDFC Life’s claim settlement ratio: 99.39%
Both companies are highly trustworthy, but HDFC has a slight edge.
4. Rider Options – Added Protection
| Rider Option | LIC Tech Term | HDFC Click 2 Protect Life |
|---|---|---|
| Accidental Death Benefit | ✅ Available | ✅ Available |
| Critical Illness Cover | ❌ Not available | ✅ Available |
| Waiver of Premium on CI | ❌ Not available | ✅ Available |
| Income Benefit Rider | ❌ Not available | ✅ Available |
Verdict: HDFC clearly offers more comprehensive rider options, allowing for better customization and financial protection for family.
5. Return of Premium (ROP) Option
LIC Tech Term does not offer ROP.
HDFC Click 2 Protect Life has an optional ROP, where premiums are returned if the policyholder survives the term.
If you prefer to get your premiums back, HDFC has an advantage.
🧠 LIC vs HDFC Life Insurance Review: Pros and Cons
✅ LIC Tech Term Pros:
Backed by India’s oldest and most trusted insurer
Higher insurance company credibility
Simple plan with no confusing options
❌ LIC Tech Term Cons:
No return of premium
Limited rider options
Higher minimum sum assured (₹50L)
✅ HDFC Click 2 Protect Life Pros:
More rider and plan options
Lower entry sum assured
Optional ROP and monthly income options
❌ HDFC Click 2 Protect Life Cons:
Slightly more complex to understand
Private insurer (less legacy trust than LIC)
🧮 Tools to Help You Choose: Term Insurance Premium Calculator
Before buying, always use an online term insurance premium calculator to:
Customize sum assured and riders
View real-time premium estimates
Compare multiple insurers side-by-side
Both LIC and HDFC offer calculators on their official websites.
🧾 Final Thoughts: Best Term Insurance LIC or HDFC?
There’s no one-size-fits-all answer to the LIC vs HDFC term plan comparison. Here’s how to decide:
| If you prefer… | Choose… |
|---|---|
| Simplicity and brand trust | LIC Tech Term |
| More benefits, lower premium, flexibility | HDFC Click 2 Protect Life |
| Return of premium option | HDFC |
| Critical illness coverage | HDFC |
| Highest claim settlement ratio | HDFC (slightly) |
📌 FAQs – LIC vs HDFC Term Plan Comparison
1. Which is better – LIC Tech Term or HDFC Click 2 Protect Life?
If you want simple protection and trust LIC’s legacy, go for LIC Tech Term. If you want flexibility, critical illness riders, and ROP options, HDFC Click 2 Protect Life is better.
2. What is the difference between LIC and HDFC term insurance features?
LIC offers a straightforward plan with limited rider options. HDFC offers more customization, including critical illness, income benefit, and return of premium.
3. Does LIC or HDFC offer better claim settlement ratios in India?
Both have excellent ratios. As of IRDAI 2023 data:
LIC: 98.52%
HDFC Life: 99.39%
HDFC has a slight edge in speed and convenience too.
4. Can I buy these term plans online?
Yes. Both LIC and HDFC offer online term insurance policies. You can apply, upload documents, and pay premiums digitally.
5. Do both LIC and HDFC offer critical illness coverage?
Only HDFC offers critical illness rider options. LIC Tech Term does not currently provide CI cover.
6. Which has a better premium for a ₹1 Crore sum assured?
HDFC Click 2 Protect Life usually has slightly lower premiums, depending on the term and age. Always use a term insurance premium calculator to compare in real time.
7. How do I compare LIC and HDFC term plans effectively?
Use a side-by-side feature table, assess:
Claim ratios
Premiums
Sum assured
Rider options
Financial goals (ROP, monthly income, etc.)
✅ Conclusion: LIC vs HDFC Term Plan Comparison – Choose Based on Your Needs
Choosing between LIC and HDFC term insurance depends on what you value most—simplicity and credibility, or flexibility and comprehensive benefits.
If you’re someone who trusts traditional names and wants a pure term cover, LIC Tech Term will serve you well. But if you want the flexibility to add riders, opt for return of premium, or receive monthly payouts, HDFC Click 2 Protect Life is an excellent choice in 2025.
Always compare LIC and HDFC term plans side-by-side using official calculators, read policy documents carefully, and choose what’s best for your family’s financial future.
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