Life insurance is a contract between an insurance policyholder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person (often the policyholder). Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policyholder typically pays a premium, either regularly or as one lump sum. The benefits may include other expenses, such as funeral expenses.
If we are talking about life insurance companies, we cannot overlook Life Insurance Corporation of India and HDFC Life Insurance Company because both the life insurers have come up with a sack full of different types of life plans so that the customers can find the suitable one according to their needs. They have online facilities such as an online customer portal, online buying process, online premium payment facility, etc. so that the customers do not find anything difficult while purchasing/renewing/claiming life insurance. To know more about these life insurers, have a look at the following mentions.
Comparison Between LIC of India and HDFC Life Insurance Company
The following table gives you a glimpse of these two insurers and their differences.
|Parameters||Life Insurance Corporation of India||HDFC Life Insurance Company|
|Number of term plans||36||81|
|Type of the insurer||Public sector life insurer||Private sector life insurer|
|Online buying facility for life plans||Available, but not for all||Available|
|Premium payment options||Flexible, one can choose from different options||You can opt to pay an annual premium, half-yearly premiums, quarterly premiums or even make monthly payments.|
|Additional benefits||Available after paying an extra premium amount||Various additional benefits are available|
|Online claim facility||Not available||Yes. Available|
|Insurance Ombudsman facility||At present, 12 centers are operating all over the country.||Not available|
|Tax benefit||Available, as per the prevailing tax laws||Premium paid under term insurance policies are eligible for deductions as per the tax laws.|
|Claim settlement ratio as per the IRDAI Annual Report 2021-22||98.74%||98.66%|
|Solvency ratio as of March 2022||1.85||1.76|
|Premiums underwritten||Rs. 428,024.97 crores||Rs. 45,962.83 crores|
|Equity share capital as of March 2022||Rs. 2112.62 crores||Rs. 6325.00 crores|
|ChatBot facility||LIC Mitra||Etty|
|SATELLITE SAMPARK offices||Exclusively for LIC||Not available|
|Connectivity||It has 2048 fully computerized branch offices, 113 divisional offices, 8 zonal offices, 1381 satellite offices, and the corporate office.||The count of distribution partnerships is over 300, comprising banks, NBFCs, MFIs, SFBs, brokers, and new ecosystem partners amongst others.|
Know About Life Insurance Corporation of India
Life Insurance Corporation of India (LIC) is an Indian multinational public sector life insurance company headquartered in Mumbai. It is India’s largest insurance company as well as the largest institutional investor with total assets under management worth ₹45.7 trillion as of March 2023. The Life Insurance Corporation of India was established on 1 September 1956, when the Parliament of India passed the Life Insurance of India Act, nationalizing the insurance industry in India. Over 245 insurance companies and provident societies were merged together. Now the company has come up with more than 30 life insurance plans including endowment plans, ULIP plans, pension plans, health plans, etc. Life Insurance Corporation continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. The life policies of this insurer are very cost-effective and customer-friendly; therefore, it is gaining popularity day by day.
What are the benefits of life insurance plans under the Life Insurance Corporation of India?
The following are the benefits.
Life Insurance Corporation of India has been in the insurance market for over six decades. Over the years, it has grown bigger winning the trust of the policy-seekers. looking at its past record of claim settlement ratio, and solvency ratio, it can be said that LIC is certainly a good choice for life insurance plans.
Today Life Insurance Corporation functions with 2048 fully computerized branch offices, 113 divisional offices, 8 zonal offices, 1381 satellite offices, and the Corporate Office. Life Insurance Corporation’s Wide Area Network covers 113 divisional offices and connects all the branches through a Metro Area Network. Life Insurance Corporation has tied up with some Banks and Service providers to offer online premium collection facilities in selected cities. Life Insurance Corporation’s ECS and ATM premium payment facility is an addition to customer convenience.
Variety of Plans:
The company offers a bunch of life plans such as endowment plans, Unit-Linked Plans, term plans, child plans, retirement plans, TROP policies, investment plans, savings plans, and many more. Therefore, one can get all the policies under one roof, and choose anyone as per his/her choice.
Life Insurance Corporation has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner, and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future.
The premium amount depends on the policy you choose and on other factors such as health conditions, pre-existing diseases, lifestyle, additional coverage, etc. However, as the company is for everyone, the price for a basic life policy starts at a very low cost.
To keep pace with the growing trend of digitalization LIC has come up with different online facilities, such as an online customer portal, online buying, and premium payment advantage for the benefit of the customers so that they can avail of all the facilities at their own pace.
The company has also offered different calculators such as term insurance calculators, premium calculators, investment calculators, etc so that the customers can calculate the premium amount according to their needs before investing in any plan.
Let’s Find Out Details About HDFC Life Insurance Company
HDFC Life Insurance Company Limited is a long-term life insurance provider headquartered in Mumbai, offering individual and group insurance services and it was incorporated on 14 August 2000. The company is a joint venture between Housing Development Finance Corporation Ltd (HDFC), one of India’s leading housing finance institutions, and Abrdn, a global investment company. this company has come up with more than 80 life insurance products, which is really one of the causes for choosing this insurer. Over the decades the company has been successful in delivering commitments and excellent services to its customers. They have also come up with several discounts and women-specific policies to encourage women to invest in life plans to secure their future.
Major highlights of the life insurance under HDFC Life Insurance Company
Here are the benefits.
Huge Number of Plans:
This insurer introduces around 81 life plans of different types such as term plans, ULIP plans, child plans, retirement plans, group plans, health plans, etc. so that one can choose anyone according to his/her need.
Claim Settlement Ratio:
According to the IRDAI Annual Report of 2021-22, HDFC Life Insurance Company has a 98.66% claim settlement ratio which is good enough to put the company on your bucket list.
To Pay off Debts:
We never know what life has in store for us. If anything were to happen to you, your family may have to deal with a car loan, a credit card bill, or other types of loans. The payout from a life insurance policy of HDFC Life can help your loved ones repay these debts.
To Fulfill Long-term Goals:
Depending on the insurance plan you choose, you can invest small amounts that will accumulate over time to help you purchase your dream home or start-up that business you have always dreamed about. And, HDFC Life is there for you to achieve your goal with their life products.
As an earning member of your family, your loss will not only hurt your family emotionally but also financially. If you have a good life cover from this insurer, your family will have a financial safety net to help them through their grief.
If you are buying a life policy from HDFC, you can get the opportunity to customize your policy as per your needs. You can choose the premium payment term, policy term, premium payment frequency, additional cover, etc.
Not every kind of insurance can help you plan for retirement. Thankfully, HDFC Life has tailor-made retirement plans that you can invest in. The earlier you purchase one of these plans, the more money you will have to enjoy once you decide to retire.
LIC of India, or HDFC Life Insurance company, which one is better against all odds?
Choosing between Life Corporation of India, and HDFC Life Insurance Company is a hard task, because LIC has been there in the market for more than 60 years and, therefore has more experience. On the other hand, HDFC Life has been gaining popularity among customers since its inception due to its unique features and customer-friendly approach. If you want affordability, you can go for LIC, but if you want to have more options while choosing a life plan and more features and benefits, HDFC Life is a better option. Moreover, everything depends on the policy-seeker on what he/she wants, what are the requirements, and what the budget is. These factors will help you to choose the most suitable one. However, before selecting any one, go through the details of the policy, the exclusions, and inclusions, and compare the premium amount using the online calculator, only then go for the more appropriate one.