LIC of India Vs HDFC Life Insurance

LIC of India Vs HDFC Life Insurance

Life insurance policy is one of the most popular insurances among the policy-seekers. Upon the untimely death of the policyholder, the insurer offers a lump sum amount of money to the beneficiary of the policy. The money can be taken as a lump sum amount in instalments so that the family does not have to suffer any financial crisis. When we are talking about life insurers, we cannot overlook two names – LIC Life Insurance and HDFC Life Insurance. Both companies have been there in the market for a long period. To keep pace with the growing demand of digitalisation both companies have come up with different online facilities for their customers. The life plans of these two insurers are customer-friendly and have come up with different benefits so that the customers can reap the maximum advantages. 

Comparison Between LIC of India and HDFC Life Insurance Company

The following table gives you a sketch of these two life insurers and their comparisons.

ParametersLife Insurance Corporation of IndiaHDFC Life Insurance Company
Type of the insurerPublic sector life insurerPrivate sector life insurer
Number of term plans3681
Premium payment optionsFlexible, one can choose from different optionsYou can opt to pay an annual premium, half-yearly premiums, quarterly premiums or even make monthly payments.
Online buying facility for life plansAvailable, but for selective plansAvailable
Insurance Ombudsman facilityAt present, there are 12 centres operating all over the country.Not available
Additional benefitsAvailable after paying an extra premium amountVarious additional benefits are available
Claim settlement ratio as per the IRDAI Annual Report 2021-2298.74%98.66%
Online claim facilityNot availableYes. Available
Tax benefitAvailable, as per the prevailing tax lawsPremium paid under term insurance policies are eligible for deductions as per the tax laws.
ChatBot facilityLIC MitraEtty
Solvency ratio as of March 20221.851.76
SATELLITE SAMPARK officesExclusively for LICNot available
Premiums underwrittenRs. 428,024.97 croresRs. 45,962.83 crores
ConnectivityIt has 2048 fully computerised 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.
Equity share capital as of March 2022Rs. 2112.62 croresRs. 6325.00 crores

Know About Life Insurance Corporation of India

Life Insurance Corporation of India is one of the largest life insurance insurance investors in India. It was established on 1st September 1956 and the headquarters is in Mumbai. To form LIC more than 245 public solicitors and insurance companies were merged. Presently the company has offered a sack full of life insurance plans including endowment plans, money back plans, ULIP plans, pension plans, etc. It has been there in the market for more than 60 years and during this period, it has gained popularity among the customers and it has a solid background and very well-built record. The policies are mostly popular because of their customer-friendly nature and for having low premium rates.

What are the benefits of life insurance plans under the Life Insurance Corporation of India?

Here are the important mentions.

  • This insurer has more than 2000 official branches, 113 divisional offices, 8 zonal offices, and 1381 satellite offices spread all over India. ECS and ATM premium facilities are also available with LIC. Therefore, if anyone wants to get connected with this insurer, he/she can easily do so.
  • This company has been there in the insurance market for over 6 decades. During this period, the Corporation has built its foundation very strong with a good record. So, people tend to rely on LIC more than anything else.
  • SATELLITE SAMPARK has been launched by LIC which is closer to the customers. It is a small digitised customer service that can keep the customer record with full transparency.
  • The company has come up with a sack full of life insurance plans such as money-back plans, pension plans, health plans, endowment plans, and many more. So, the customers can choose any one according to their convenience.
  • Life Insurance Corporation of India is known for its low premium rate. However, the premium rates depend on various factors such as the age of the insured person, pre-existing diseases, health history, background, etc. LIC tries to keep the premium rate in such a way so that common people can easily avail of their plans.
  • To keep pace with the growing demand for digitalisation, LIC has come up with different online facilities such as renewal, online premium submission, customer portal, etc.
  • Calculators have become important parts of the insurance market as it helps to estimate the premium amount one has to pay for the selected plan. LIC has presented different online calculators such as term insurance calculators, investment calculators, premium calculators, etc. so that the customers can benefit from those.

Let’s Find Out Details About HDFC Life Insurance Company

HDFC Life Insurance Company has been in the market since 14th August 2000. The company sells group and individual insurance policies. The most unique thing about this insurer is that it has come up with more than 80 life insurance products so that the customers can select any one of those according to their choice. This company also offers numerous discounts such as discounts for female customers which is a good step to encourage more women in the country to save money. Over 2 decades it has been there in the insurance market successfully and is becoming more popular day by day.

Major highlights of the life insurance under HDFC Life Insurance Company

The important mentions are as follows.

  • The number of plans matters a lot when it comes to the life insurance company. This company has more than 80 life insurance policies such as child plans, ULIP plans, endowment plans, retirement plans, group plans, etc. so that the policy-seekers can choose according to their requirements.
  • Flexibility is another important feature of this insurer. If you are buying a life product from this insurer then you can choose the policy tenure, premium payment term, and premium payment frequency as per your choice.
  • Different additional covers are available with the life products of this insurer to enhance the strength of the policy. This additional cover can be purchased by paying a little extra premium amount.
  • The claim settlement ratio of this insurer is 98.66% according to the Annual Report of IRDAI of the financial year 2021-2022. Therefore, if you are buying a life product from this insurer, you do not have to worry about the settlement of your claim.
  • If the earning member of the family faces an untimely death who is also the insured person then the company will be there to help you financially so that the family members do not have to go through a financial crisis.
  • If anything happens to the insured person, then the family does not have to worry about the debts in the form of loans such as home loans, car loans, educational loans, credit card bills, etc. as the payouts that will be received from the insurer, the family can pay off the debts from there.
  • With HDFC life insurance plans, you can invest small amounts to build a corpus so that you can fulfil your dreams and live a financially secure life.
  • Everyone wants to live the golden days of retirement life worry-free. HDFC Life Insurance has come up with certain plans that help you to build a corpus amount systematically so that you can live your retirement life without any tension.

LIC of India, or HDFC Life Insurance company, which one is better against all odds?

When it comes to choosing between LIC Life Insurance and HDFC Life Insurance, becomes the hardest part because both companies are very popular in their fields. LIC has been there in the insurance market for more than 60 years, and at the same time over 2 decades, HDFC is gaining popularity. If you want a good background, reliability and a life insurance plan with a lower premium rate, then LIC is the ideal one for you. On the other hand, if you want more plans to choose from, flexibility, and different unique benefits, then you should go for the HDFC one. Therefore, it depends on the requirements of the policy seekers what they want, their budget, etc. which company he/she would go for. However, it is highly suggested that before selecting any insurer, one should go through the exclusions, inclusions, and compare the premium amount, and only then invest in one.

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