The decision of which life insurance provider to choose can be a difficult one. HDFC Life and LIC are two of the most well-known life insurance providers in India. Each of them has its own benefits that should be weighed before making your decision.
Below are some points to consider when thinking about which is better between HDFC Life and LIC:
• Financial Strength: LIC has been in the business of life insurance for a longer period of time and has a higher amount of assets than HDFC Life.
• Scope of Products: Both HDFC Life and LIC offer a range of life insurance products, including term insurance plans, endowment plans, ULIPs, pension plans, and more. However, HDFC Life has more types of life insurance products to choose from, including child plans, wealth plans, and health plans.
• Premium Rates: Premium rates vary from carrier to carrier and from plan to plan. Generally speaking, LIC offers lower rates compared to HDFC Life. Comparing the two plans side by side can give you an idea of the cost difference.
• Claim Settlement Ratio: According to IRDAI's Annual Report - 2019-20, LIC was slightly ahead of HDFC Life in terms of claim settlement ratio.
• Customer Service: HDFC Life has a large network of branches and offices across India, which allows it to provide better customer service. LIC also provides good customer service as it is a Government-backed insurer.
At the end of the day, the decision of which life insurance provider is better for you largely depends on your personal requirements and financial goals. Our advice would be to compare the products offered by both these providers, and then choose the one that fits your needs the best.