The future brings uncertain situations at uncertain times. One never knows how life would play out, despite making plans for it. In such situations, term life insurance is a very helpful tool.
It aids families with financial help in case of untimely deaths. HDFC and Tata AIA are two popular companies that offer plans for the same.
Key Takeaways
- HDFC Life and Tata AIA offer various term insurance plans with coverage options, premium rates, and policy terms.
- HDFC Life has a higher claim settlement ratio than Tata AIA, indicating a better track record for settling claims.
- Tata AIA provides more rider options for enhancing policy coverage, while HDFC Life offers a more diverse product portfolio, including investment-linked insurance plans.
HDFC Life vs Tata AIA Term Insurance
HDFC Life Insurance is a term insurance policy, with its headquarters in Mumbai, India, that provides coverage for a specific period of time. Tata AIA Life Insurance is a traditional whole life insurance policy, also based in Mumbai, that provides coverage for the policyholder’s entire life.
HDFC life is one of the most popular term insurance plans that people opt for. It first came into the picture in the year 2000. Since then, it gained quite a positive reputation for its 3 variants of life insurance plans.
These can even be purchased and claimed online. Moreover, HDFC is renowned for its affordable pricing for term insurances.
Meanwhile, Tata AIA term insurance plans are top-rankers in the market. They were first released in 2001 with 6 different variant plans to choose from.
Like the former, these can be purchased and claimed online. However, the cost of these plans is relatively more expensive as compared to HDFC Life plans.
Comparison Table
| Parameters of Comparison | HDFC Life | Tata AIA Term Insurance |
|---|---|---|
| Launch | It was launched in 2000. | It was launched in 2001. |
| Plans | It offers 3 different plans. | It offers 6 different plans. |
| Price | It is relatively affordable. | It is on the expensive end of the spectrum. |
| Claim Settlement | It has a claim settlement ratio of 99.07%. | It has a claim settlement ratio of 99.06%. |
| Locations | Its parent company is active in more than 980 locations. | Its parent company is active in more than 160 locations. |
What is HDFC Life?
HDFC Term Insurance plans are a product of HDFC Life Insurance Company Ltd. These are plans for long-term life insurances that have been available for customers since 14 August 2000.
Due to their presence in the market for such a long time, these plans are immensely popular and constantly growing in terms of demographics.
The parent company operates in more than 980 cities, which makes it accessible to a large number of people.
HDFC Life offers three plans namely – HDFC Life Click 2 Protect 3D Plus, HDFC Life Click 2 Protect Plus, and HDFC Life Click 2 Protect Life.
Each of them offers different features that allow customers to analyze which plan would suit them best. Moreover, the plans can be purchased at a very affordable price which makes them a good choice for the average citizen.
Furthermore, HDFC Life has a claim settlement ratio of 99.07%. This ratio is essentially a metric that represents the number of insurance claims that have been settled in a fiscal year.
The percentage in the case of this company is relatively higher as compared to other plans in the market. This is another reason that attracts people to choose HDFC Life.
The company even allows customers to buy or claim settlements online. This allows more flexibility for both parties.
Moreover, the low cost of premiums, which can also be paid online, allows customers to maintain a healthy lifestyle without too much financial stress.
What is Tata AIA Term Insurance?
Tata AIA Term Insurance is a product of Tata AIG General Insurance Company Ltd. These are long-term life insurance plans that are available to customers since 22 January 2001.
Since then, the parent company has managed to offer its services in more than 160 locations, which is a smaller scale as compared to HDFC Life.
This proves to be a limitation in terms of accessibility in this case.
Regardless, the company offers 6 different life term insurance plans namely – Saral Jeevan Bima, Sampoorna Raksha, Sampoorna Raksha Plus, Sampurna Raksha Supreme, iRaksha Trop, and Maharaksha Supreme.
This means that the customers have a wider range of options to choose from.
These plans are backed with different benefits and features. However, their price is at the expensive end of the spectrum.
Furthermore, the claim settlement ratio of the company for life insurance is 99.06%. Even though the number is lesser than HDFC Life, the difference is next to negligible.
Therefore, this does not play a major role in choosing between companies. The plans can be purchased in person or even online. Other E-services include premium payments, registration for claims, and even tracking of the plan.
Some of the plans are even eligible for tax benefits which is a major attraction for customers.
Main Differences Between HDFC Life and Tata AIA Term Insurance
- HDFC Life was launched in 2000 whereas Tata AIA Term Insurance was launched in 2001.
- HDFC Life offers 3 different plans whereas Tata AIA Term Insurance offers 6 different plans.
- HDFC Life is relatively affordable whereas Tata AIA Term Insurance is on the expensive end of the spectrum.
- HDFC Life has a claim settlement ratio of 99.07% whereas Tata AIA Term Insurance has a claim settlement ratio of 99.06%.
- HDFC Life’s parent company is active in more than 980 locations whereas Tata AIA Term Insurance’s parent company is active in more than 160 locations.
- https://www.motilaloswal.com/site/rreports/637508795122586764.pdf
- https://www.indianjournals.com/ijor.aspx?target=ijor:ijmie&volume=8&issue=1&article=019
Last Updated : 13 July, 2023
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
