Term Insurance HDFC vs ICICI

Term Insurance HDFC vs ICICI | Which is Best in 2024?

What makes term insurance of HDFC and ICICI different from each other? Let’s find out the best comparison to get proper health security.

Term insurance is a form of life insurance and the most affordable insurance policy. People buy a term insurance policy to secure the future of their loved ones and family members when they will not be around. With this policy, the beneficiary/nominee of the policyholder will get the sum assured after his/her demise.

So, what makes term insurance of HDFC and ICICI different from each other? Let’s find out.

Term Insurance HDFC vs ICICI:

Each of the companies offers several features based on which you can decide which one you should select.

Customization of coverage

Both HDFC and ICICI offer flexibility in their term insurance plans for the following –

  • Terminal illness
  • Permanent disability
  • Accidental death
  • Critical illness

The ICICI Pru iProtect Smart term insurance provides you coverage against 34 critical illness for both men and women. However, they also cover cancer for women-specific organs. On the other hand, HDFC Click2Protect Plus offers you coverage for 19 critical illness.

Income Replacement

The term insurance plans of HDFC and ICICI act as an option for income replacement. It becomes difficult for the family when the only earning member is suffering from a critical illness or is dead. In such a case, the ICICI Pru iProtect Smart offers critical illness coverage of up to 1 crore rupees.

On the contrary, the HDFC Click2Protect Plus gives 10% of the death benefit to the family as a lump sum after the policyholder’s death. The remaining 90% is paid as a monthly income over the following 15 years.

Pay-out options

As mentioned earlier, when an insured is no more, the insurance company provides a death benefit to the beneficiary. When the beneficiary gets the lump sum amount, he/she can use it as per their need. However, a bad decision can lead to the wastage of that money. In such a case, the insurance companies pay the rest of the benefit as a monthly pay-out option. The ICICI Pru iProtect Smart provides a monthly pay-out option of 0.83333% of the sum assured to the beneficiary. It also comes with an option where the beneficiary gets the entire death benefit as a lump sum along with the monthly income of 0.8333%.

HDFC Click2Protect Plus offers a lower percentage of 0.5% as a monthly income. It also offers an Income Plus option where 100% of the death benefit is paid as a lump sum to the beneficiary. Moreover, the company will provide a monthly income of 0.5% of the sum assured over the next 10 years. In both the term insurance policies, policyholders can choose the increasing rate of monthly income at 10% per annum.

Future financial planning

Both HDFC and ICICI term insurances offer policyholders an opportunity to increase death benefit upon marriage and childbirth. When a policyholder gets married, the insurance plan allows a certain percentage of the sum assured. Again, there will be an increase in the sum assured upon the birth or adoption of the first and second child.

Tax Benefits

Term insurance plans of both HDFC and ICIC offer tax benefits to their customers. Policyholders get a certain percentage of deductions on tax payment under Section 80C.

In the conclusion, we can say that both the term insurance plans offer almost similar benefits with some extra privileges. Individuals should do thorough research before purchasing any of the plans and select the one that meets their requirements.

What benefits does ICICI Pru iProtect Smart offer for women?

The ICICI Pru iProtect Smart term insurance plan offers special premium rates for women. Besides, it also offers coverage for female organ cancers like breast cancer and cervical cancer.

What is the best age to buy a term insurance policy?

The best age to buy a term insurance policy is in your mid-20s. This is the time when you get a job and plan for securing your future. At this age, you are at less risk of developing any critical illness or death, aside from accidental death. So insurance companies will offer you the most affordable rates for term insurance. We will try to write more articles like “Term Insurance HDFC vs ICICI.” If you have any questions regarding this topic comment us.

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