I bought my first life insurance policy in 2013.
Sitting in my Fortinet office in Sunnyvale. Online quote comparison on one screen. Excel sheet on the other.
I was 32. Just married. My wife was pregnant with our first son.
I knew I needed coverage. The question was where.
HDFC Life kept showing up in every search. So did ICICI Prudential.
Both had the big bank backing. Both claimed to be NRI friendly. Both had decent reviews.
I spent two weeks researching. Called agents. Read policy documents. Talked to other Indian folks at work.
Then I made a choice.
Looking back now in 2024, after moving back to India in 2017 and helping thousands of NRIs through the Back to India movement, I have a much clearer picture.
Let me save you the confusion I went through.
The Two Giants in the Room
Both HDFC Life and ICICI Prudential are massive players.
HDFC Life started in 2000 as a joint venture with Standard Life Aberdeen. They went public in 2021.
ICICI Prudential also started in 2000, partnered with UK based Prudential plc. They listed in 2016.
Both have been around for over two decades. Both have strong parentage. Both are financially stable.
But the similarities end there.
| Factor | HDFC Life | ICICI Prudential |
|---|---|---|
| Claim Settlement Ratio FY 2022-23 | 99.04% | 98.69% |
| Assets Under Management | ₹2.5+ lakh crore | ₹2.8+ lakh crore |
| Solvency Ratio | 196% | 198% |
| Number of Policies In Force | 5.8+ crore | 4.2+ crore |
| Branch Network | 400+ | 600+ |
The numbers are close. Almost too close.
HDFC Life has a marginally better claim settlement ratio. 99.04% means out of 100 claims, they approved 99.
ICICI Prudential approved 98.69. That 0.35% difference is minimal.
Both have solvency ratios well above the regulatory minimum of 1.5. This means they can pay claims even in a crisis.
ICICI Prudential has a wider branch network. 600 branches versus 400.
That matters if you prefer face to face interactions.
When I was buying my policy in 2013, I went to an ICICI Prudential branch in Sunnyvale. They had an NRI specialist who walked me through options.
HDFC Life at that time did not have as strong a presence in the Bay Area.
Things have changed now. Both have robust online processes. You can buy policies sitting anywhere.
For more context on life insurance plans for NRIs, I have a detailed guide covering what to look for.
My Personal Experience with Both
I bought an ICICI Prudential term plan in 2013. Coverage of $500,000 for 30 years.
The process was smooth. Filled forms online. Did a medical checkup at a designated clinic in San Jose. Policy was issued in 3 weeks.
Premium was about $800 per year. Paid it for four years until I moved back to India in 2017.
When I moved back, I had to decide what to do with that policy.
ICICI Prudential allowed me to continue. I could pay premiums from my Indian bank account. No issues.
But the coverage was in dollars. That made sense when I was earning in dollars.
In India, earning in rupees, it felt odd to have dollar denominated coverage.
I did something unusual. I kept that policy active and bought another term plan in India.
The Indian policy was from HDFC Life. Coverage of ₹1 crore for 25 years.
Why HDFC Life? Because at that time in 2017, their Click 2 Protect plan had the best reviews for returning NRIs.
They offered flexible payout options. Monthly income to my family if something happened to me.
That appealed to me more than a lump sum.
I have been paying both premiums since 2017. ICICI Prudential for my US policy. HDFC Life for my Indian policy.
Both have been hassle free. No claims yet, thankfully. But the service has been good.
Renewals are automated. Premium reminders come on time. Online portals work smoothly.
If you are thinking about converting your status after returning, similar considerations apply to insurance policies.
“Life insurance is the one thing you buy hoping you never have to use it. But when your family needs it, nothing else matters.”
Term Insurance Comparison
Most NRIs want pure term insurance. Maximum coverage. Minimum premium.
Let me compare the flagship term plans from both.
| Feature | HDFC Life Click 2 Protect 3D Plus | ICICI Prudential iProtect Smart |
|---|---|---|
| Entry Age | 18 to 65 years | 18 to 60 years |
| Maximum Maturity Age | 85 years | 80 years |
| Sum Assured | ₹25 lakh to ₹100 crore | ₹25 lakh to ₹50 crore |
| Return of Premium Option | Yes | Yes |
| Income Benefit | Monthly, lump sum, or combo | Lump sum or monthly |
| Critical Illness Rider | Available | Available |
| Accidental Death Benefit | Up to ₹2 crore | Up to ₹1 crore |
| Terminal Illness Benefit | Yes | Yes |
HDFC Life allows you to enter up to age 65. ICICI Prudential stops at 60.
If you are buying late, HDFC Life gives you more flexibility.
HDFC Life also allows higher sum assured. Up to ₹100 crore versus ₹50 crore with ICICI Prudential.
Most people do not need that much coverage. But if you are a high net worth individual, it matters.
What about premiums?
Let me show you actual numbers for a 35 year old male, non smoker, ₹1 crore coverage for 30 years.
| Age/Profile | HDFC Life Annual Premium | ICICI Prudential Annual Premium | Difference |
|---|---|---|---|
| 35/Male/Non Smoker | ₹13,500 | ₹12,800 | ₹700 |
| 35/Female/Non Smoker | ₹12,200 | ₹11,600 | ₹600 |
| 40/Male/Non Smoker | ₹18,900 | ₹17,800 | ₹1,100 |
| 40/Female/Non Smoker | ₹17,100 | ₹16,200 | ₹900 |
ICICI Prudential comes out cheaper consistently.
Over 30 years, that ₹700 difference becomes ₹21,000.
Real money that could be invested elsewhere.
But cheaper is not always better.
HDFC Life offers more payout flexibility. You can structure it so your family gets ₹50,000 per month for 20 years instead of a lump sum.
I prefer that structure. A lump sum can vanish quickly if not managed well.
Monthly income ensures steady cash flow for your dependents.
When I bought my HDFC Life policy, I chose this option. If something happens to me, my wife gets ₹60,000 per month until my younger son turns 25.
That covers school fees, daily expenses, and gives her breathing room.
For more on best term insurance in India for NRIs, check out my comprehensive comparison.
ULIPs: Investment Plus Insurance
If you want insurance plus investment, both offer ULIPs.
But here is my honest take. ULIPs are complicated.
You are mixing insurance with market linked returns. That can work or backfire.
| Feature | HDFC Life ProGrowth Plus | ICICI Prudential Signature |
|---|---|---|
| Fund Options | 12+ equity and debt funds | 10+ equity and debt funds |
| Partial Withdrawal | After 5 years | After 5 years |
| Premium Allocation Charge | 2% to 7% depending on premium | 3% to 6% depending on premium |
| Fund Management Charge | 1.35% per year | 1.35% per year |
| Mortality Charges | Age based, relatively higher | Age based, moderate |
The charges eat into your returns.
Premium allocation charge means not all your money goes into investment. 3% to 7% goes to the insurer.
Fund management charge is 1.35% per year. Every year.
Over 20 years, these charges compound.
I have never bought a ULIP. I keep insurance and investment separate.
Pure term plan for coverage. Mutual funds for investment.
Why? Transparency. Lower costs. Full control.
My investment strategy after returning to India has always been to keep things simple.
If you still want a ULIP, HDFC Life has more fund options. ICICI Prudential has slightly lower charges.
Pick your poison.
Claim Settlement: The Real Test
Policy documents look great. Premiums are paid. Then someone dies.
Does the insurer pay up quickly? Or do they make families fight?
Both HDFC Life and ICICI Prudential have claim settlement ratios above 98%.
That means they approve most claims.
But I know someone whose father passed away in 2021. He had an ICICI Prudential policy.
The claim was settled in 9 days. Zero hassle. Zero questions.
The family got ₹50 lakhs. Clean process.
I also know someone whose brother died in 2020. HDFC Life policy.
Claim approved in 12 days. Smooth process.
Both insurers seem to deliver when it matters.
Where do rejections happen?
Most rejections are due to non disclosure during application.
You hide a medical condition. Buy the policy. Die within 3 years.
Insurer investigates. Finds the undisclosed condition. Rejects the claim.
I cannot stress this enough. Be completely honest during the proposal.
Diabetes? Disclose it.
Hypertension? Disclose it.
Family history of heart disease? Disclose it.
Your premium might increase by 15% to 25%. But your claim will not be rejected.
False economy is not worth the risk to your family.
For understanding more about tax benefits for NRIs in India, insurance premiums also help in deductions under Section 80C.
NRI Specific Features
Both insurers cater to NRIs. But there are differences.
Premium Payment:
HDFC Life accepts payments from NRE, NRO, FCNR accounts. Also international credit cards.
ICICI Prudential also accepts all NRI account types. Plus they allow SWIFT transfers from foreign accounts.
I pay my ICICI Prudential premium from my US bank account via international wire. Works smoothly.
Policy Purchase Process:
Both allow online purchase. But verification can be tricky.
HDFC Life requires video KYC. You schedule a call. Show your documents. Get verified.
ICICI Prudential has a similar process. But they also accept in person verification at select branches abroad.
When I bought my ICICI Prudential policy in 2013, I went to their Sunnyvale office. They had someone who handled NRI cases.
Made the process faster.
Currency Denomination:
HDFC Life offers rupee denominated policies only. Even for NRIs.
ICICI Prudential offers both rupee and dollar denominated policies.
My ICICI Prudential policy is in dollars. Made sense when I was earning in dollars.
If you are planning to return to India eventually, rupee denominated makes more sense.
Tax Treatment:
Both policies qualify for tax deduction under Section 80C.
Premiums paid are deductible up to ₹1.5 lakh per year.
Death benefit is tax free under Section 10(10D).
If you are in RNOR status after returning to India, these deductions help reduce your taxable income.
Customer Service: Who Picks Up the Phone
You will call customer service. For premium reminders. For claim status. For policy changes.
HDFC Life:
Their helpline is responsive. I have called them multiple times over the years.
Average wait time is 3 to 5 minutes. The representatives are knowledgeable.
Their app is decent. You can view policy details, pay premiums, download statements.
But document upload sometimes fails. I have had to email documents separately.
ICICI Prudential:
Their customer service is slightly better. Average wait time is 2 to 4 minutes.
The app is superior. Smoother interface. Document upload works reliably.
I can track my policy, see premium payment history, download tax certificates, all from the app.
Both offer email support. Response time is 24 to 48 hours for both.
For urgent matters like claim initiation, both have dedicated helplines. Available 24/7.
Real Scenarios: Which One Should You Pick
Let me give you some real scenarios.
Scenario 1: NRI in USA, planning to return in 5 years, age 35
Recommendation: HDFC Life
Why? Rupee denominated policy. Flexible payout options. Good for long term India focus.
Scenario 2: NRI in UAE, no plans to return, age 40
Recommendation: ICICI Prudential
Why? Dollar policy option. Better international payment support. Strong brand in Gulf.
Scenario 3: Recently returned to India, age 38, need coverage for family
Recommendation: Either works, pick lower premium
Why? Both are equally good for residents. Go with cost.
Scenario 4: High net worth individual, need ₹10 crore coverage
Recommendation: HDFC Life
Why? Higher sum assured limits. Better customization options.
Scenario 5: Want insurance plus investment in one product
Recommendation: Neither, buy term plan and invest separately
Why? Better returns, lower costs, full transparency.
My personal setup is ICICI Prudential for my old US policy and HDFC Life for my India policy.
If I had to pick one today for a new policy, I would probably go with HDFC Life.
Why? Because I am settled in India. The monthly income option matters to me. The brand is strong.
But ICICI Prudential is equally good. You cannot go wrong with either.
When to Consider Both
Here is an unconventional approach.
Buy policies from both insurers.
Split your coverage. ₹50 lakhs from HDFC Life. ₹50 lakhs from ICICI Prudential.
Why would you do that?
Risk diversification. If one insurer rejects a claim for some reason, the other might approve.
Also, some people hit the maximum coverage limit with one insurer. They buy additional from another.
I have two policies. Not by design, but it worked out well.
The combined premium is manageable. The coverage is adequate.
If you are thinking about planning finances in India after years abroad, multiple policies can be part of a layered strategy.
Common Mistakes to Avoid
Mistake 1: Buying based only on premium
Cheapest is not always best. Look at claim ratio, payout flexibility, company stability.
Mistake 2: Mixing insurance with investment
ULIPs sound attractive. But they underperform compared to term plan plus mutual funds.
Mistake 3: Inadequate coverage
Do not buy ₹25 lakh coverage to save ₹5,000 per year. Your family needs at least ₹1 crore.
Mistake 4: Not updating nominee
Life changes. Marriage, kids, relocations. Update your nominee details regularly.
Mistake 5: Letting policy lapse
Pay premiums on time. If a policy lapses and you restart it, you lose continuity benefits.
I set up auto debit for both my policies. Never have to remember due dates.
The Verdict
If I had to pick one for an NRI buying today, I would lean towards HDFC Life.
Here is why.
Better claim settlement ratio. 99.04% versus 98.69%. Small difference but it adds up.
Higher maximum coverage limits. ₹100 crore versus ₹50 crore.
More flexible payout options. Monthly income is valuable for dependents.
Allows entry up to age 65. Better for late buyers.
But ICICI Prudential is not far behind.
Lower premiums. Saves ₹20,000 to ₹30,000 over policy term.
Better app and digital experience. Easier to manage policy online.
Dollar policy option for NRIs staying abroad.
Wider branch network. 600 versus 400 branches.
My honest take? Both are solid.
Pick based on your specific needs. If monthly income matters, go HDFC Life. If cost matters, go ICICI Prudential.
You cannot make a wrong choice here.
Just make sure you make a choice. Having any policy is better than having none.
Your family deserves that security.
For more detailed guidance, ask in our Facebook group. Hundreds of NRIs share their insurance experiences there.
Use the wisdom of the crowd.
TLDR Version
HDFC Life Strengths:
- Higher claim settlement ratio: 99.04%
- Coverage up to ₹100 crore
- Entry age up to 65 years
- Flexible monthly income payouts
- Strong brand reputation
HDFC Life Weaknesses:
- Higher premiums by ₹700 to ₹1,100 per year
- Smaller branch network: 400 branches
- Rupee policies only
ICICI Prudential Strengths:
- Lower premiums consistently
- Better digital platform and app
- Dollar policy options for NRIs
- Wider branch network: 600 branches
- Strong international presence
ICICI Prudential Weaknesses:
- Lower claim settlement: 98.69%
- Entry age only up to 60 years
- Coverage capped at ₹50 crore
For NRIs staying abroad: ICICI Prudential (dollar policies, better international support)
For NRIs returning: HDFC Life (monthly income, rupee focus)
For cost conscious: ICICI Prudential (lower premiums)
For maximum coverage: HDFC Life (higher limits)
Bottom line: Both are excellent. Pick based on your specific situation. Get quotes. Compare. Then buy.
The biggest mistake is not having life insurance at all.
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