LIC vs HDFC vs ICICI Term Plans – Which is Best in 2025?

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In 2025, buying a term insurance plan is more than just selecting the lowest premium. It’s about trust, features, claim settlement reliability, flexibility, and long-term value. Among the top insurers in India, LIC, HDFC Life, and ICICI Prudential are the most widely trusted names.

But which one is right for you?

This guide compares the term plans of all three companies — highlighting premiums, claim settlement ratios, plan features, riders, pros, and ideal buyer profiles.


Why This Comparison Matters

These three insurers have:

  • Pan-India reach and customer trust
  • High claim settlement ratios
  • Flexible plan options
  • Online purchase availability
  • Strong post-claim service and financial strength

However, they differ significantly in premium cost, available riders, coverage limits, and policy features.


Overview of Compared Plans (2025)

InsurerPlan NameEntry AgeMax Maturity AgeMax Policy TermClaim Settlement Ratio
LICTech Term 2.018–658040 years98.52%
HDFC LifeClick 2 Protect Super18–6585Till age 8599.39%
ICICI PrudentialiProtect Smart18–657540 years97.82%

1. LIC Tech Term 2.0 (Government-Backed Trust)

Key Features:

  • Pure term plan offered online
  • Fixed or increasing sum assured options
  • Premium payment modes: single, limited, or regular
  • Option for accident benefit rider
  • Offers high coverage up to ₹5 crore

Premium Example (30-year-old, ₹1 Cr cover, 30-year term):
~ ₹11,200 per year (non-smoker, male)

Pros:

  • Strong trust among Indians
  • Simple plan structure
  • Low rejection rate
  • Government-backed brand (highest customer faith)

Cons:

  • No critical illness or disability rider
  • Less flexible in payout options
  • Limited digital servicing compared to private players

Best For: Buyers who prefer traditional trust and want basic protection without complex add-ons.


2. HDFC Life Click 2 Protect Super (Flexibility Leader)

Key Features:

  • Offers three options: Life, Life Plus, and Life Goal
  • Income benefit, return of premium, and terminal illness options
  • Add-ons: Waiver of premium, accidental death, critical illness
  • Coverage up to age 85
  • Can choose staggered payouts (monthly + lump sum)

Premium Example (30-year-old, ₹1 Cr cover, 30-year term):
~ ₹9,800 per year

Pros:

  • High flexibility in benefits and payout options
  • Comprehensive rider availability
  • Strong claim settlement ratio
  • Long coverage up to age 85

Cons:

  • Premium increases with added benefits
  • Overwhelming for first-time buyers due to plan variants

Best For: Young professionals or families who want custom protection, income options, and enhanced features.


3. ICICI Pru iProtect Smart (Rider-Rich Plan)

Key Features:

  • Four benefit options: Life, Life + Disability, CI Protect, and Income
  • Critical illness coverage for 34 diseases
  • Terminal illness benefit included by default
  • Multiple payout options (lump sum, income, hybrid)
  • Coverage up to ₹10 crore

Premium Example (30-year-old, ₹1 Cr cover, 30-year term):
~ ₹10,400 per year

Pros:

  • Free terminal illness benefit
  • Large critical illness rider coverage
  • High flexibility in claim payout
  • Trusted private insurer

Cons:

  • Premium is slightly higher with riders
  • CI coverage capped at ₹25–50 lakh

Best For: Buyers looking for built-in health security (CI/Disability) and multi-purpose protection.


Feature-Wise Comparison Table (2025)

FeatureLIC Tech Term 2.0HDFC Click 2 ProtectICICI iProtect Smart
Max Coverage Age80 years85 years75 years
Critical Illness Rider✅ (34 illnesses)
Accidental Death Rider
Terminal Illness Benefit✅ (default)
Return of Premium Option
Online Buying Option
Premium (₹1 Cr Cover/30 yrs)₹11,200₹9,800₹10,400
Claim Settlement Ratio (2023)98.52%99.39%97.82%
Free Look Period30 days30 days30 days
Policy Revival Period5 years5 years5 years

Which One Should You Choose in 2025?

Choose LIC Tech Term if:

  • You prefer maximum brand trust and simplicity
  • You want a long-term, no-frills protection plan
  • Government association is important for you

Choose HDFC Click 2 Protect Super if:

  • You want flexible coverage with payout options
  • You’re open to return-of-premium or income benefit plans
  • You want high claim reliability and multiple riders

Choose ICICI Pru iProtect Smart if:

  • You want comprehensive critical illness protection
  • Terminal illness and disability benefits are important
  • You prefer a hybrid of life and health protection in one plan

Final Verdict

Each plan excels in different areas:

  • LIC wins on trust and simplicity
  • HDFC Life excels in flexibility and long-term coverage
  • ICICI Prudential is best for add-on features and critical illness protection

If you are buying term insurance in 2025, take time to assess your age, income, family status, and health background — then choose the insurer that aligns with your financial goals and protection needs.

Buying early gives you lower premiums, longer coverage, and access to more options.


Disclaimer

This article is for informational purposes only. Please consult with a licensed insurance advisor or visit the official websites of LIC, HDFC Life, or ICICI Prudential before making a policy decision.

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