Term insurance is a key pillar of financial planning, offering peace of mind that your loved ones will remain financially protected after you pass away. In India’s growing insurance market, two names often stand out among the other term insurers: SBI Life and HDFC Life. But when it comes to choosing the right provider, how do you decide which one is better suited to your needs? In this article, we have a showdown of SBI Life vs HDFC Life.
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Overview – SBI Life vs HDFC Life Insurance
Company Overview – SBI Life Vs HDFC Life Insurance
HDFC Life Insurance
HDFC Life was founded in 2000 as a joint venture between HDFC Ltd. and Standard Life Aberdeen (now abrdn plc), an investment company headquartered in the UK. Since Aberdeen Group exited the venture in 2023, HDFC Life operates independently, with strong backing from the HDFC group and public investors. Considering that the company is backed by one of the leading private banks in the country, HDFC Life is now one of the top three life insurance companies in India, and is also listed on the stock market.
Staying true to its reputable history, the insurer boasts excellent metrics.
| Metric (Avg of 2021-24) | HDFC Life Metrics | Industry Metrics |
|---|---|---|
| Claim Settlement Ratio (Avg of 2021-24) | 99.20% | Mean: 98.13% |
| Solvency Ratio (Median 2021-24) | 1.89 | Mean: 2.0 (IRDAI specifies a minimum of 1.5 is acceptable) |
| Complaint Volume (Median 2021-24) | 2 per 10,000 claims | Median: 15 per 10,000 claims |
| Amount Settlement Ratio (Avg of 2021-24) | 93.86% | Mean: 94.1% |
| Total Business Volume (Avg of 2021-24) | ₹29,490 crore | Median: ₹3,018 crore |
| Amount Paid in Claims (Avg of 2021-24) | ₹1,860 crore | Median: ₹254 crore |
SBI Life
SBI Life Insurance is one of India’s leading life insurers, established in 2001 as a joint venture between the State Bank of India (SBI) and BNP Paribas Cardif, a global insurance company and subsidiary of BNP Paribas. Registered with the Insurance Regulatory and Development Authority of India (IRDAI), the company has steadily built a strong reputation, backed by the trust and legacy of the SBI brand.
With SBI’s extensive branch network at its disposal, SBI Life has established a widespread presence across the country, particularly in semi-urban and rural areas. Its diverse portfolio includes a range of products spanning protection, savings, investment, and retirement solutions that cater to both individuals and groups.
| Metric (Avg of 2021-24) | SBI Life Metrics | Industry Metrics |
|---|---|---|
| Claim Settlement Ratio (Avg of 2021-24) | 97.64% | Mean: 98.13% |
| Solvency Ratio (Median 2021-24) | 2.1 | Mean: 2.0 (IRDAI specifies a minimum of 1.5 is acceptable) |
| Complaint Volume (Median 2021-24) | 4.8 per 10,000 claims | Median: 15 per 10,000 claims |
| Amount Settlement Ratio (Avg of 2021-24) | 95.20% | Mean: 94.1% |
| Total Business Volume (Avg of 2021-24) | ₹31,095 | Median: ₹3,018 crore |
| Amount Paid in Claims (Avg of 2021-24) | ₹2126 crore | Median: ₹254 crore |
As you can see, both SBI Life and HDFC Life’s metrics outperform the industry. This raises the question: Which life insurer should you choose?
Comparing SBI Life Vs HDFC Life Insurance
To simplify things, here is a comparison of the two insurers’ operational metrics and track records.
| Metric (Avg of 2021-24) | SBI Life Metrics | HDFC Life Metrics | Industry Metrics |
|---|---|---|---|
| Established | 2001 | 2000 (HDFC + erstwhile Standard Life) | |
| Ownership | SBI + BNP Paribas | HDFC Bank group, public shareholders | |
| Claim Settlement Ratio (Avg of 2021-24) | 97.64% | 99.20% | Mean: 98.13% |
| Solvency Ratio (Median 2021-24) | 2.1 | 1.89 | Mean: 2.0 (IRDAI specifies a minimum of 1.5 is acceptable) |
| Complaint Volume (Median 2021-24) | 4.8 per 10,000 claims | 2 per 10,000 claims | Median: 15 per 10,000 claims |
| Amount Settlement Ratio (Avg of 2021-24) | 95.20% | 93.86% | Mean: 94.1% |
| Total Business Volume (Avg of 2021-24) | ₹31,095 | ₹29,490 crore | Median: ₹3,018 crore |
| Amount Paid in Claims (Avg of 2021-24) | ₹2126 crore | ₹1,860 crore | Median: ₹254 crore |
From this, two points are evident –
- Both SBI Life and HDFC Life consistently outperform industry averages across key metrics, including complaint volume, total business volume, and the amount paid in claims. Their strong performance reflects robust operations, customer trust, and sound financial health, all of which compare favorably to broader industry benchmarks.
- When comparing just the two, HDFC Life edges ahead in key areas. While SBI Life has a slightly better Amount Settlement Ratio, HDFC Life stands out for its exceptionally low complaint volume, just 2 per 10,000 claims compared to SBI Life’s 4.8 (average calculated in the period of 2021-2024). This indicates a smoother claims experience and better customer satisfaction. Coupled with a higher Claim Settlement Ratio and a comparable business scale, HDFC Life emerges as the stronger choice overall.
Product Comparison of SBI Life Vs HDFC Life Insurance
HDFC Life Insurance - Click 2 Protect Super
HDFC Life’s Click 2 Protect Super is a comprehensive term insurance plan designed for pure protection. It offers coverage up to the age of 85, with the flexibility to enhance your policy through riders such as critical illness and accidental disability coverage. One of its standout features is the option to increase coverage at key life milestones, such as marriage or the birth of a child, without requiring additional medical tests. Above all, it’s an ideal choice for those seeking long-term security with built-in adaptability. Here’s a more detailed review I wrote about this plan, if you’re interested.
SBI Life Insurance - e-Shield Next
SBI Life’s e-Shield Next is a simple, affordable term insurance plan that offers flexibility in both coverage and payout options. Policyholders can choose from standard protection or enhance their plan with optional riders, such as spouse coverage and accidental death benefits. It’s an excellent fit for those seeking straightforward, cost-effective life insurance that doesn't require complex features or extensive customization, ideal for individuals who prefer reliable, no-frills protection.
Unique Selling Propositions (USPs) for SBI Life Vs HDFC Life Insurance
HDFC Life
HDFC Life Insurance builds its credibility on a consistently high Claim Settlement Ratio and exceptionally low complaint volume, making it a reliable choice for those who prioritize a hassle-free claims experience and long-term dependability for their families.
SBI Life
On the other hand, SBI Life stands out for its trust factor, backed by the State Bank of India’s legacy. It’s ideal for those who value physical branch access, traditional plans, and stable, government-associated reliability. With a wide presence and solid product range, it caters well to conservative investors and offline-first customers.
Which Insurer Should You Choose? SBI Life Vs HDFC Life Insurance
Choosing between SBI Life and HDFC Life can feel overwhelming, especially since both are reputed insurers with strong financials, extensive product lines, and decades of experience in the Indian insurance market.
Choose SBI Life Insurance if you:
- Value trust and scale backed by the SBI brand.SBI Life benefits from the credibility of being backed by the State Bank of India, one of the most trusted financial institutions in the country. This provides a sense of long-term stability and security for conservative policyholders.
- Prefer face-to-face interactions through physical branches.With one of the widest branch networks across India, SBI Life is ideal if you’re someone who prefers in-person assistance for queries, servicing, or claims.
- Want access to traditional, savings-linked life insurance products.SBI Life’s portfolio includes a strong lineup of endowment, money-back, and ULIP products. If you’re looking for insurance that combines life cover with long-term savings or wealth accumulation, this is a strong contender.
Choose HDFC Life Insurance if you:
- Want robust claim performance and digital innovation.HDFC Life consistently maintains a high Claim Settlement Ratio (approximately 99.2%) and offers a seamless digital claims process. This helps policyholders and their families avoid hassles during challenging times.
- Prefer flexibility and modern features in your term plan.HDFC Life's flagship term product, Click 2 Protect Super, offers a wide range of riders (including zero cost option, critical illness, and income payout on disability options), life stage adjustments, and smart add-ons such as a waiver of premium on critical illness and disability. It’s designed for individuals who want their insurance to evolve with their changing life goals.
- Need a seamless digital experience.From online premium payments to servicing, claims tracking, and updating personal details, HDFC Life’s digital ecosystem is among the best in the industry. Ideal for tech-savvy individuals who prefer to manage everything online.
Ditto’s Take on SBI Life vs HDFC Life
Both insurers are trustworthy and deliver above-average performance on key industry metrics. However, HDFC Life pulls ahead in areas that matter most to today’s consumers—higher claim settlement efficiency, rider-rich term plans, and superior digital tools. It's a strong choice for those seeking a blend of innovation and reliability.
That said, SBI Life is a better fit for customers who value a traditional experience, trust the SBI brand, and prefer plans that are more savings-oriented than purely protective.
Premium Comparison of SBI Life vs HDFC Life
Premiums play a significant role in selecting a life insurance policy, as they influence long-term affordability and financial planning. Let’s consider a few examples.
A 30-year-old salaried, non-smoking male with a coverage amount of 1 crore until the age of 65.
| Insurer/ Plan | Approx Annual Premium |
|---|---|
| SBI Life Insurance (E-Shield Next) | First Year= ₹15,275 Second Year onwards = ₹15,507 |
| HDFC Life Insurance (Click 2 Protect Super) | First year = ₹15,863 Second year onwards = ₹16,698 |
Note: *The 1st-year premium includes a 5% discount for salaried individuals.
The 1st-year premium includes a discount of 1.5% if brought through the official SBI Life website.
These figures are indicative and can vary based on underwriting guidelines, optional riders, and premium payment frequency.
35-year-old salaried female non-smoker with a coverage amount of 1 crore till 70 years
| Insurer/ Plan | Approx Annual Premium |
|---|---|
| SBI Life Insurance (E-Shield Next) | First Year= ₹17,352 Second Year onwards = ₹17,616 |
| HDFC Life Insurance (Click 2 Protect Super) | First year = ₹18,665 Second year onwards = ₹19,647 |
Note: The 1st-year premium includes a 5% discount for salaried individuals.
The 1st-year premium includes a discount of 1.5% if brought through the official SBI Life website.
These figures are indicative and vary based on underwriting guidelines, optional riders, and premium payment frequency.
If you're seeking cost-effective term plan options, SBI Life's offerings are an excellent choice. On the other hand, if you're looking for more comprehensive coverage, HDFC Life Insurance provides a broader range of plans.
Now let’s look at the reasons behind the variation in premiums:
- Age:
Premiums increase with age due to rising risk. Buying early locks-in lower rates for the entire policy duration. - Smoking & Tobacco Consumption:
Smokers are charged significantly higher premiums than non-smokers due to increased health risks. - Gender:
Typically, females are charged lower premiums as they statistically have a longer life expectancy. - Lifestyle and Medical History:
Individuals with pre-existing conditions or those in high-risk occupations may experience higher rates.
Claim Settlement Ratio Comparison of SBI Life vs HDFC Life
The Claim Settlement Ratio (CSR) serves as a key indicator of an insurer's effectiveness in honoring policyholder claims. Between 2021 and 2024, SBI Life Insurance maintained an impressive average CSR of 97.64%, while HDFC Life Insurance outperformed it by almost 2 percentage points with an average CSR of 99.20%. When compared to the industry average CSR of 98.13%, both insurers demonstrate strong reliability and customer trust. However, HDFC Life’s higher ratio suggests a marginal edge in claim settlement efficiency over SBI Life during this period.
Riders and Add-ons Comparison of SBI Life vs HDFC Life
Both SBI Life and HDFC Life offer a variety of riders and add-ons to improve the coverage of their life insurance policies. These options offer additional benefits tailored to specific needs, providing policyholders with the flexibility to customize their coverage. Below is a breakdown of the available riders and add-ons from each insurer.
SBI Life's e-Shield Next Riders and Add-ons
SBI Life’s e-Shield Next offers several valuable add-ons:
- Extra Payout for Accidental Death: In the event of accidental death, the beneficiary receives an additional payout in addition to the base sum insured.
- Extra Payout on Accident Disability: Provides additional coverage if the policyholder suffers a disability resulting from an accident, providing an extra benefit.
- Cover for Spouse: Extends coverage to the policyholder’s spouse, improving family protection.
HDFC Life's Click 2 Protect Super Riders and Add-ons
HDFC Life’s Click 2 Protect Super also offers a range of riders and add-ons, both free and paid:
- Extra Payout on Accidental Death: Provides an additional payout in the event of accidental death, just like SBI Life.
- Extra Monthly Income Payout for Accidental Disability: Provides additional coverage for permanent disability resulting from an accident.
- Cover Against 60 Critical Illnesses: A comprehensive rider that covers up to 60 critical illnesses, offering financial support during treatment.
- Waiver of Premium: If diagnosed with a critical illness or permanent disability, this add-on waives future premiums, ensuring the policy remains in effect.
- Early Payout on Terminal Illness:, HDFC Life offers a free early payout option in the event of a terminal illness diagnosis.
Both SBI Life and HDFC Life offer valuable riders and add-ons, with a common free benefit of an early payout in the event of terminal illness. While both insurers offer similar accident-related add-ons, HDFC Life distinguishes itself by providing a wider range of paid options, including coverage for 60 critical illnesses, a waiver of premium in the event of a critical illness, and additional coverage for disabilities. These options make HDFC Life’s Click 2 Protect Super a more comprehensive choice for those focused on health risks.
Financial Strength and Market Position Comparison - SBI Life vs HDFC Life
Financial robustness in the insurance sector is often evaluated through metrics such as business volume, claims paid, and solvency ratios.
Between 2021 and 2024, SBI Life Insurance reported an average total business volume of ₹31,095 crore and paid out ₹2,126 crore in claims annually. Its solvency ratio stood at 2.1, exceeding the Insurance Regulatory and Development Authority of India’s (IRDAI) minimum requirement of 1.5. This highlights the company’s strong capital position and ability to meet its obligations.
HDFC Life Insurance also exhibits solid financial health, with an average business volume of ₹29,490 crore and ₹1,860 crore in claims paid annually during the same period. Its median solvency ratio of 1.89 remains securely above the regulatory threshold, reflecting prudent risk management and capital adequacy.
Customer Reviews and Ratings Comparison of SBI Life vs HDFC Life
Customer satisfaction in the insurance industry is often assessed by analyzing complaint volumes, with lower complaint ratios indicating better customer service and more effective claim handling. Between 2021 and 2024, SBI Life Insurance reported a median of 4.8 complaints per 10,000 claims, reflecting a relatively high level of dissatisfaction among its policyholders. In contrast, HDFC Life Insurance reported a much lower median of just 2 complaints per 10,000 claims during the same period, demonstrating a notably higher level of customer satisfaction.
When compared to the industry median of 15 complaints per 10,000 claims, both insurers perform well, with HDFC Life standing out for its significantly lower complaint volume, suggesting a more substantial commitment to meeting customer expectations and enhancing overall satisfaction.
Why Choose Ditto Insurance for Term Insurance?
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Frequently Asked Questions (FAQs)
Which is better between SBI Life and HDFC Life for term insurance?
HDFC Life is the better choice for term insurance, offering a wider range of riders and more comprehensive coverage options.
Who has the better claim settlement ratio?
HDFC Life has a higher Claim Settlement Ratio (99.20%) compared to SBI Life (97.64%), indicating greater efficiency in settling claims.
Is SBI Life cheaper than HDFC Life?
SBI Life may offer slightly lower premiums, but HDFC Life provides more comprehensive coverage options, particularly in add-on benefits.
Which insurer offers better riders?
HDFC Life offers better riders, particularly for critical illness and disability coverage, giving it a clear edge over SBI Life.
Which company is older and more trusted?
The trusted SBI brand backs SBI Life, but both companies have strong reputations and similar track records in the industry.
Conclusion - HDFC Life vs SBI Life Which is Better?
In the battle of SBI Life vs HDFC Life, both insurers offer strong financial performance and reliable coverage options. However, HDFC Life stands out with its higher claim settlement ratio, broader range of critical illness riders, and modern features, making it a better choice for those seeking comprehensive life insurance. On the other hand, SBI Life offers the trusted legacy of the SBI brand, a vast branch network, and solid traditional products, making it an ideal option for those prioritizing familiarity and offline support. Ultimately, the decision between HDFC Life and SBI Life depends on your personal preferences and the type of coverage you value most.
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