When it comes to protecting your family’s future, choosing the right term insurance plan is one of the most important financial decisions you can make. Two of the biggest names in India’s life insurance space—LIC and HDFC Life—offer popular term insurance products with strong claim records and competitive features.
But when it’s time to decide between them, which one should you go for?
This article is your complete guide to LIC vs HDFC term plan in 2025. We’ll compare them across key aspects like premiums, benefits, riders, claim settlement ratios, and more—so you can confidently choose the plan that suits your needs.
✅ What Is a Term Insurance Plan and Why Do You Need It?
Before we jump into the LIC vs HDFC term insurance comparison, let’s quickly understand what term insurance is all about.
Term insurance is a life insurance policy that provides financial protection for a specific period. If the policyholder dies during the term, their nominee receives the sum assured—a tax-free lump sum amount. It’s the most affordable way to secure your family’s future.
Benefits of a Term Plan:
High coverage at low premiums
Death benefit for family security
Tax benefits under Sections 80C and 10(10D)
Optional riders for enhanced protection
Peace of mind knowing your family is protected
🔍 LIC vs HDFC Term Plan: A Quick Snapshot
Here’s a side-by-side overview of both insurers’ flagship term insurance plans:
| Feature | LIC Tech Term | HDFC Click 2 Protect Life |
|---|---|---|
| Insurer Type | Public Sector | Private Sector |
| Entry Age | 18 – 65 years | 18 – 65 years |
| Maximum Policy Term | Up to 40 years | Up to 85 years of age |
| Minimum Sum Assured | ₹50 lakh | ₹25 lakh |
| Claim Settlement Ratio (2023)* | 98.52% | 99.39% |
| Premium Payment Options | Single, Regular, Limited | Single, Regular, Limited |
| Riders Available | Accidental Death Benefit | Accidental Death, Waiver of Premium, Critical Illness |
| Return of Premium Option | No | Yes (optional) |
| Purchase Mode | Online Only | Online & Offline |
*As per IRDAI Annual Report 2023-24
🧾 Premium Comparison: LIC vs HDFC Term Insurance
One of the biggest deciding factors is how much premium you’ll pay for your term policy.
Let’s take an example:
A 30-year-old non-smoker male looking for a ₹1 crore sum assured for a policy term of 30 years.
| Company | Annual Premium (Approx.) |
|---|---|
| LIC Tech Term | ₹10,800 – ₹12,500 |
| HDFC Click 2 Protect | ₹9,000 – ₹11,000 |
👉 LIC premiums are slightly higher, primarily because LIC is a public insurer with a legacy of trust. HDFC Life offers more flexibility in premium payment and slightly lower costs.
🛡️ Benefit Comparison: LIC Term Plan vs HDFC Term Plan
Let’s break down the LIC term plan benefits vs HDFC term plan benefits across the board:
✔️ LIC Tech Term Benefits:
Pure protection term plan
Two death benefit options: Level Sum Assured and Increasing Sum Assured
Discounts for female lives and non-smokers
Policy available only through online purchase
✔️ HDFC Click 2 Protect Life Benefits:
Multiple plan options: Life, Life Plus, Life & CI Rebalance
Accidental death benefit rider and premium waiver options
Critical Illness Cover in specific variants
Option for Return of Premium on maturity
✅ Verdict: HDFC offers more customizable features, especially for those looking for riders and return of premium benefits.
📊 LIC vs HDFC Claim Settlement Ratio
When it comes to term insurance, claim settlement ratio (CSR) is crucial. A higher ratio means your family is more likely to receive the claim without hassle.
| Insurer | Claim Settlement Ratio (2023-24) |
|---|---|
| LIC | 98.52% |
| HDFC | 99.39% |
✅ While both are excellent, HDFC slightly edges ahead in claim efficiency.
🔄 Difference Between LIC and HDFC Term Insurance: Key Points
| Parameter | LIC Term Insurance | HDFC Term Insurance |
|---|---|---|
| Trust & Brand Value | Highest (Government-backed) | High (Reputed private insurer) |
| Premium Affordability | Higher | Lower |
| Flexibility | Moderate | High (multiple plan options) |
| Riders | Limited | Extensive |
| Online Availability | Yes (only online) | Yes (online and offline) |
👵 LIC vs HDFC Term Insurance for Senior Citizens
Many individuals in their late 50s and early 60s look to buy term insurance.
LIC allows entry up to age 65 but with limited term coverage options.
HDFC also allows entry till 65 and offers premium waiver riders—helpful if you face income uncertainty.
However, premiums rise significantly for senior citizens in both plans.
👉 Tip: If you’re 50+, compare both on the basis of premium and available riders before choosing.
🧩 Riders and Customization: What Extras Can You Add?
Riders can enhance your term plan’s coverage:
✅ LIC Term Plan Riders:
Accidental Death Benefit Rider
✅ HDFC Click 2 Protect Riders:
Accidental Death Rider
Critical Illness Rider
Premium Waiver Rider
👉 If you’re looking for term insurance policy with riders, HDFC is the better option in 2025.
💡 Real-Life Scenario Comparison
Rahul (Age 32) is a software engineer with a ₹1 crore goal for life coverage. He compares both LIC and HDFC:
LIC Tech Term premium: ₹11,000/year
HDFC Click 2 Protect Life (with critical illness + return of premium): ₹14,000/year
Rahul wants additional protection and likes the return option. So, he chooses HDFC for customization.
On the other hand, Meena (Age 45), a government employee, prefers trust and simplicity. She opts for LIC Tech Term, valuing its solid reputation and minimal frills.
📲 Buying Experience and Customer Support
LIC:
Only online purchase for Tech Term
Website is functional but not user-friendly for all
Traditional process with fewer customization options
HDFC Life:
Smooth digital purchase journey
Detailed plan customization on website/app
Faster support response time
✅ In 2025, HDFC’s tech-driven support gives it an edge for digital-savvy buyers.
📘 Conclusion: Best Term Plan LIC or HDFC in 2025?
Choosing between LIC vs HDFC term plan boils down to your preferences:
Want a reliable, government-backed insurer with high credibility? ✅ Go with LIC
Want a customizable plan with riders and better digital experience? ✅ Choose HDFC Life
Both plans offer strong protection—but if you’re looking for flexibility, HDFC Click 2 Protect Life has more to offer in 2025.
❓ FAQs About LIC vs HDFC Term Plan
1. What is the difference between LIC and HDFC term insurance?
The key difference lies in customization—LIC offers basic protection, while HDFC offers flexible riders, plan types, and return of premium options.
2. Which has better claim settlement—LIC or HDFC?
Both are excellent, but HDFC has a slightly higher claim settlement ratio at 99.39%, while LIC stands at 98.52%.
3. Can I buy LIC and HDFC term plans online?
Yes. LIC Tech Term is available only online, while HDFC Click 2 Protect can be purchased online or through agents.
4. Which term plan is best for senior citizens—LIC or HDFC?
Both offer term insurance up to age 65, but HDFC offers more rider options, making it slightly better for senior citizens seeking enhanced cover.
5. Does HDFC offer return of premium option?
Yes, HDFC Click 2 Protect offers a Return of Premium option. LIC Tech Term does not.
6. What riders can I get with HDFC Click 2 Protect Life?
You can add critical illness cover, accidental death benefit, and premium waiver rider with HDFC Life.
7. Are both LIC and HDFC IRDAI-approved?
Yes, both companies are IRDAI-licensed insurers, fully regulated and trustworthy.
Comments (0)