HDFC Life Insurance Company Review

Pros Explained

• Online quotes available for most policies: With HDFC, you don’t have to go through an agent to get an estimate of your premiums; you can use the company’s plan calculators to get an idea of your rates. 
• Wide range of plan options: While many insurance companies have just a handful of life insurance plans, the HDFC Life Insurance Company has many different individual policies. Some plans are specifically designed for certain audiences, such as women or individuals living in rural areas, so you can find a plan that suits your needs. 

Cons Explained

• Limited policy options for non-residents: HDFC caters to Indian residents. While it does sell some policies to NRIs, the options are limited, and policies aren’t available to people who aren’t Indian citizens. 
• Policies are very different than plans sold in the U.S.: If you’re used to U.S.-based life insurance companies, you may find HDFC’s policies confusing; they work differently than U.S. plans. For example, some child plans are designed to provide money to the child when they reach certain milestones, such as earning a degree or starting a new job. 
• Information is difficult to find: With so many different life insurance options, the HDFC Life Insurance Company is massive. It can be difficult to navigate, and we found many broken links as we were doing our research. If you cannot find the information on HDFC’s website, you’ll have to contact customer service or an insurance agent for details. 

Available Plans

HDFC Life Insurance Company sells a wide range of products. It has many different individual life insurance policies. However, most plans are only for Indian citizens and residents. Non-resident Indians, meaning Indian citizens living and working in another country, can qualify for just a few of the available plans. 

Because Indian life insurance policies can be very different than life insurance policies in the United States, here is an overview of the insurance types available from HDFC Life: 

Child

Child insurance plans from HDFC aren’t just to provide coverage in case the child dies; they can also provide money for the child’s education. Depending on the plan you choose, you can start withdrawing money from the account after five years of paying your premiums. Your policy may also have a cash value that is invested for potential growth. 

Combo

Combo plans combine whole life coverage with lifelong income. You can get a plan that covers you until you turn 100, and you can get regular income in the form of cash bonuses from the first year onward. 

Point of Sale (POS) Plans

A POS plan is available for purchase online and doesn’t require a medical exam. With this coverage option, you can choose to make payments for five to seven years, and the death benefit is guaranteed to be at least 10 times the annualized/single premium. POS plans from HDFC have a maturity benefit as well as a death benefit, so you can get a lump sum once the plan meets its maturity date. 

Savings

A savings plan has a cash value component that is saved rather than invested. These plans give you guaranteed returns at regular intervals throughout your policy’s term, or you can opt for a lump sum payment. 

Term Life

HDFC’s term life policies are similar to term insurance sold in the U.S. The most cost-effective insurance option, term life plans give you coverage for a predetermined length of time. If you die during that term, your beneficiaries receive a death benefit. If you survive your policy’s term, there is no payout. 

Unit Linked Insurance Plans (ULIP)

ULIPs are insurance policies that are tied to the performance of Indian stock exchanges, such as the National Stock Exchange of India Limited. There are multiple investment options to choose from, and you can make withdrawals to meet emergency expenses. 

Available Riders

Like many insurance companies in the U.S., the HDFC Life Insurance company has optional insurance riders that you can add to your policy at an additional cost. You can use riders to purchase additional coverage, access your death benefit to pay for expenses while you’re living, or waive your premiums if you become disabled. 

Accidental Death

If you are killed in a covered accident, HDFC will pay you an additional benefit if you have this rider on your policy. 

Accidental Disability

If you are partially or permanently disabled, you can use this rider to get a lump sum payment while you’re living. 

Critical Illness Coverage

If you add the critical illness coverage rider to your plan, it acts as an income replacement if you become critically ill. The amount received can help cover some of your living expenses and medical bills. 

Income Rider

With the income rider, you’ll receive a monthly income payment for 10 years that is equal to a percentage of your rider total.

Premium Waiver

With the premium waiver rider, the company will waive future premiums if you cannot pay them due to an accidental disability or critical illness. 

Protect Plus

The Protect Plus rider provides three benefits: personal accident coverage, accidental death coverage, and cancer coverage. With all three, you or your beneficiaries will receive a monthly income for 10 years. 

Customer Service

With most HDFC policies, you must contact an agent or call the company directly. However, there are some policies for NRIs that can be purchased entirely online. 

To buy a policy, you have to present the following documents: 

• Photocopy of valid passport
• The form for proposal/application form
• Documents specifying the health conditions/check up reports
• Age proofs
• Income proofs

For NRIs, all copies of these documents must be verified by a notary public, court magistrate, judge, Indian Embassy/Consulate General, branches of overseas banks with whom Indian banks have relationships, or authorized officials of overseas branches of Scheduled Commercial Banks in India.

The HDFC Life Insurance has a massive website with educational tools, resources, and policy brochures. However, we found that it had many broken links and error messages as we tried to get information about some policy options and eligibility criteria, which may be frustrating for customers looking to buy coverage. 

You can find a local HDFC office with the branch locator tool. Or, NRIs can call +91-8916694100 or you can use their online chat option. 

Complaint Index

The HDFC Life Insurance Company doesn’t sell policies within the United States, so the National Association of Insurance Commissioners (NAIC) did not issue it a complaint ratio. 

Third-Party Ratings

As an insurer for Indian residents, HDFC hasn’t been evaluated by AM Best, the credit rating agency that rates U.S. insurers. It also wasn’t included in the J.D. Power 2021 U.S. Individual Life Insurance Study since the researchers only looked at companies based in the U.S.

However, customers have generally left favorable reviews about the company. On PolicyBazaar—an insurance aggregator for Indian insurers—the HDFC has a rating of 4.2 out of 5 based on over 145 customer reviews. 

S&P Global assigned a “BBB” long-term financial strength rating to HDFC. It’s the fifth Indian company to be rated higher than the sovereign rating of India. 

Cancellation Policy

In the U.S., customers usually have a 10-day "free look" period to review their policies and cancel them without penalty. 

For HDFC, the free look period is 15 days. However, policies purchased online or over the phone are subject to a 30-day free look period. Once the free look period ends, policies typically have a cancellation fee. For details, contact HDFC or your insurance agent. 

Price

With all of its policies, HDFC offers rate tools you can use to estimate your premium costs. As with other companies, HDFC requires you to select either “male” or “female” when getting a quote for a policy or submitting a life insurance application.  As HDFIC  is an Indian company, it may have different guidelines and restrictions than U.S.-based companies for nonbinary individuals. 

Competition

If you are not an Indian citizen, you aren’t eligible for HDFC’s policies and you are likely better off with a company that is based in the U.S., such as Northwestern Mutual. 

Northwestern Mutual is the largest individual life insurance company in the country based on direct premiums written. It has four different policy types available to customers: term, whole life, universal, and variable universal policies. Northwestern Mutual also has an excellent reputation for customer service. It was ranked third out of 21 companies in the J.D. Power 2021 U.S. Individual Life Insurance Study, and it received fewer complaints than expected for its size according to NAIC.

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How We Review Life Insurance Companies

Our reviews of life insurance companies are based on a quantitative methodology that analyzes each insurer on their stability and reliability, customer service, claims experience, diversity of product lines, and cost. We compare the terms of each type of policy offered—including available coverage amounts, optional riders, and premium payment options—with those of other major life insurance companies. Lastly, we look at how the company is rated by third-party organizations to determine its reliability and overall reputation.