Have you ever wondered what will happen in case of your sudden death? Who will bear the expense of your family? If you don’t think about such scenarios, then you should start thinking and choose the best life insurance.
Life insurance holds paramount importance in providing financial security and safeguarding the well-being of loved ones. Serving as a financial safety net, life insurance ensures that in the event of the policyholder’s demise, their dependents are shielded from the potentially devastating impact of lost income.
Since the market has two popular options, namely LIC’s New Tech Term and HDFC Life Click To Protect Life, you should choose one that caters to your needs. If you are in a dilemma about what to choose, let’s dig deep into the comparison between both plans and make the right choice.
Comparison Between LIC’s New Tech Term and HDFC Life Click To Protect Life
Confused between LIC’s New Tech Term and HDFC Life Click To Protect Life? Let’s take a look at the differences between the two.
| Parameters | LIC’s New Tech Term | HDFC Life Click to Protect Life |
| Minimum Age at Entry | 18 years | 18 years |
| Maximum Entry Age | 65 years (Last Birthday) | 85 years for non-PoS 65 years for PoS |
Minimum Basic Sum Assured | Rs. 50,00,000 | Rs. 20, 00, 000 (Life & CI Rebalance) Rs. 50, 000 (Fixed Term & Whole Life) |
| Premium Paying Term | Regular Premium: Same as policy term Limited Premium: [Policy Term minus 5] years for Policy Term [10 to 40] years [Policy Term minus 10] years for Policy Term [15 to 40] years Single Premium: NA | Fixed term: Single Pay, Regular Pay, Limited Pay (5 to any PPT less than PT) For whole life; Limited Pay (5, 10, 15 pay) For fixed term and whole life: Single Pay, Limited Pay (5, 10 pay) |
| Max. Basic Sum Assured | No limit, subject to Board Approved Underwriting Policy (BAUP) | |
| Riders | LIC’s Accident Benefit Rider |
|
| Death Benefit | Covered | Covered |
| Exclusions | If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of the risk, the Nominee or beneficiary of the Life Assured shall be entitled to 90% of the Single Premium paid. | In case of death due to suicide within 12 months from the date of commencement of risk under the policy or from the date of the revival of the policy, the beneficiary will receive 80% of the total premiums paid. |
| Maturity Benefit | On survival of the life assured to the end of the policy term, no maturity benefit is payable | On survival until Maturity, the Sum Assured on Maturity will be payable. |
| Discounts | Special rates for women. There are two categories of premium rates namely (1) Non-smoker rates and (2) Smoker rates. | Special premium rates for female lives and non-tobacco users |
| Loan Facility | No loan will be available. | |
What is LIC’s New Tech Term?
LIC’s New Tech-Term is a Non-Linked, Non-participating, Individual, Pure Risk Premium Life Insurance Plan. This Online plan provides financial protection to the insured’s family in case of his/her unfortunate death during the policy term. This plan will be available through the online application process only and no intermediaries will be involved.
In case of the unfortunate demise of the policyholder, the beneficiary receives a lump sum payment that is equal to 7 times the annualized premium or 105% of the premiums paid till death, whichever is higher. The absolute sum assured at death can be opted for by the policyholder at the time of policy inception between two types: level sum assured or increased sum assured. The death benefit can be taken in installments over 5, 10, or 15 years by the beneficiary.
What are the key Features and Benefits of LIC’s New Tech Term?
Here are the features and benefits of LIC’s New Tech Term insurance.
- Many Revival and Surrender Options
LIC’s New Tech Term plan offers the option for policy revival even when the policy has lapsed, it also provides a surrender benefit before the completion of the policy term.
- Flexible Payment Frequencies
This plan has many payment frequency alternatives such as annual, semi-annual, quarterly, or monthly premium payments, the policyholder can choose the duration according to his or her capability.
- Additional Riders
LIC’s Accidental Death Benefit Rider is available under regular and limited premium payment policies. You can add this rider to your base plan to enhance the coverage of the base plan by paying an additional amount included in your regular premiums.
- Flexibility in Life Cover
One of the ace features of this plan is the flexibility to choose the policy term. The customer can select a term ranging from 10 years to 40 years, depending on their age and their specific needs.
- High Coverage Options
The New Tech term plan by LIC offers high coverage options, policyholders can select desired coverage for various financial needs. The minimum sum assured is Rs. 50,00,000/- and the maximum amount has no limits.
- Increasing Sum Assured Option
With this choice, your assured sum will remain unchanged for the initial 5 years. From the sixth year until the 15th year of the policy, the assured sum will increase by 10% annually for the subsequent 10 years. By the end of the 15th policy year, your sum assured will have doubled. The assured sum will then stay consistent from the 16th policy year until the conclusion of the policy term.
- Tax Benefits
The policyholders of the LIC’s New Tech Term Plan are eligible for tax benefits as per prevailing sections of the Income Tax Act, 1961.
What is HDFC Life Click To Protect Life?
HDFC Life Click 2 Protect Life ensures comprehensive financial protection for your family. With three plan options—Life and CI Rebalance, Life Protect, and Income Plus—this plan is tailored to meet your financial needs. It provides the flexibility of term return of premium and whole life insurance under a single plan, featuring special premium rates for female and non-smoking customers. To qualify for this plan, the policyholder must be between 18 and 65 years old at the time of application, with a maximum maturity age of 75 years.
The Life and CI Rebalance is an intelligent coverage designed to automatically adjust the benefits for death and critical illness as the policyholder ages. Life Protect is an alternative that offers a lump sum amount in the event of the policyholder’s demise. The Income Plus Option provides coverage for the entire policy term, delivering a lump sum payout upon policy maturity along with regular income payouts starting from the age of 60 years.
What Makes HDFC Life Click To Protect Life Unique?
Listed below are the reasons that make HDFC Life Click To Protect Life unique.
- Death Benefit
The main objective of the death benefit is to offer financial assistance and protection to the family or dependents of the deceased policyholder. This benefit is disbursed as a lump sum to the nominee in the event of the untimely demise of the policyholder, and it is determined as the higher of
- Sum Assured on Death
- 105% of Total Premiums Paid
- Term Return of Premium (ROP) Option
Opting for the Term Return of Premium plan, the policyholder will receive a refund of all the premiums paid over the policy term at the conclusion of the policy tenure.
- Waiver of Premium on Critical Illness (WOP CI) option
Under this choice, upon the diagnosis of a critical illness listed in the plan, all the outstanding premiums for the term plan will be waived. To select this option, the premium payment term must exceed 5 years, and the chosen plan option should be the Life Protect option with a fixed term.
- Accidental Death Benefit (ADB) option
With the ADB (Accidental Death Benefit) rider benefits, the nominee will receive the full rider sum assured if the policyholder passes away due to an accident.
- Alteration of Premium Payment Frequency
The policyholder has the flexibility to modify the premium payment mode or frequency at any time during the premium payment term.
- Option to reduce premium payment term
HDFC Life Click to Protect Life offers policyholders the flexibility to convert their regular payment premium term to a limited pay premium term without incurring any additional costs.
- Free Look Period
During the free look period, if the policyholder is dissatisfied with the policy documents and their terms and conditions, they can cancel the policy without any consequences and receive a refund of all premiums paid. For policies purchased online, the free look period is 30 days from policy issuance, while for offline-issued policies, it is 15 days from receiving the policy documents.
- Grace Period
The grace period serves as an additional timeframe for policyholders to make premium payments after the due date without risking policy lapse. It extends to 15 days for monthly premiums and 30 days for all other premium payment modes.
- Revival
The policyholder has the opportunity to reinstate their lapsed HDFC Life Click To Protect Life plan within the 5-year revival period from the date of the last unpaid premium. To revive the lapsed policy, the policyholder is required to submit the outstanding premiums, along with interest on the amount and applicable taxes.
- Surrender Benefit
For a single premium payment, the policy accumulates surrender value instantly, whereas, under limited and regular pay, the surrender value is accrued after two years of premium payments. Upon surrendering the term plan, the policyholder will receive the surrender value, leading to the termination of the policy.
- Policy Loan
There is no loan facility available under this plan since it is a pure term life insurance.
Premium Calculation of LIC’s New Tech Term
The following are the sample illustrative premiums under various premium payment methods for Option I (Level Sum Assured) and Option II (Increasing Sum Assured) for the Basic Sum Assured of Rs. 1 Crore for Non-Smoker, Male, Standard life.
Age (Last Birthday) | Policy Term | Regular Annual Premium (in Rs.) | Annual Premium for Limited Premium Paying Term of (Policy Term minus 5) Years (in Rs.) | Annual Premium for Limited Premium Paying Term of (Policy Term minus 10) Years (in Rs.) | Single Premium (in Rs.) |
| 20 | 20 | 7,047 | 8,091 | 10,266 | 75,603 |
| 30 | 20 | 9,135 | 10,527 | 13,572 | 1,00,833 |
Complete Premium Illustration of HDFC Life Click To Protect Life
Mr. Xavier, a 45-year-old man, purchases the HDFC Life Click 2 Protect Life Life & CI Rebalance option for a 20-year policy term, regular pay, and the ability to get a basic sum assured of Rs. 1,00,00,000. An annual premium of Rs. 68,295 is paid by him.
In the seventh policy year, he received a critical illness diagnosis. He obtains a lump sum critical illness payment of Rs. 29, 00, 000 along with the waiver of his future premiums. Right now, his Life Cover SA is set at Rs. 71,00,000. The thirteenth policy year was Mr. Xavier’s last year. Rs. 71,00,000 will be the lump sum death benefit payable to his nominee. The total amount of premiums paid is 4,78, 065.
| Policy Term | Basic Sum Assured | Annual Premium | Death Benefit |
| 20 years | Rs. 1,00,00,000 | Rs. 68,295 | Rs. 71, 00, 000 |
LIC’s New Tech Term vs. HDFC Life Click To Protect Life: What is the Best Life Insurance?
The choice between LIC’s New Tech Term and HDFC Life Click To Protect Life depends on various factors, including individual preferences, coverage needs, and financial goals. If you prefer a seamless digital experience with an online-focused approach, then HDFC Life Click To Protect Life might be appealing. On the other hand, LIC (Life Insurance Corporation of India) is a government-backed insurer with a long-standing legacy and a high level of trust among policyholders.
If you are looking for life insurance with a decent sum assured and the trust of the government, then LIC’s New Term Tech is an ideal choice. On the contrary, choose HDFC Life Click To Protect Life if you want to enhance your protection with multiple riders. It’s advisable to carefully read the policy documents, understand the terms and conditions, and, if needed, consult with a financial advisor to make an informed decision based on your unique circumstances.
