Term insurance: LIC vs private, explained
A term insurance plan is the cheapest way to protect your family: you pay a small premium, and if you die during the term your family gets a large lump sum. This free tool compares indicative premiums for the same cover across LIC Digi Term (876), LIC Yuva Term (875), HDFC Life Click 2 Protect, Axis Max Life Smart Secure Plus and ICICI Pru iProtect Smart, along with each insurer’s claim-settlement ratio, so you can buy term well.
Two honest points it makes clear: buying online is cheaper — LIC’s Digi Term is the same policy as Yuva Term, just sold without an agent, so it costs roughly 15–20% less; and private insurers lead slightly on claim settlement (HDFC, Max Life and ICICI at around 99.5%, versus about 98% for LIC), while LIC wins on trust and scale as India’s largest, government-backed insurer.
Frequently asked questions
Is LIC Yuva Term cheaper than Digi Term? No. Digi Term (online) is cheaper than Yuva Term (offline) for the same cover, because it skips the agent commission.
Which term plan has the best claim-settlement ratio? HDFC, Max Life and ICICI are around 99.5%; LIC is around 98%. All are high.
Are these the exact premiums? They are indicative and scale with your age and cover; your real premium depends on health and underwriting, so confirm with a live quote.