Difference between home insurance and home loan insurance

Yuvraj Dewangan/ KORBA (WEST)
I have taken a house loan from HDFC Housing finance ltd for Rs 15 lakh in year 2009 for 15 years period. At present my age is 49 year. I enquired from the HDFC housing finance ltd whether my loan is insured or not, they informed me that my loan is not insured. Now I want to insure my home loan for which I heard from your programme in few days before. HDFC proposed me some plans as under.
a) HDFC ERGO for amount 15,63,970/- monthly premium Rs 1409.00 for 13 years i/c cover of home insurance of Rs 1563970.00, theft cover of Rs 390992.00 , illness / personal accident cover Rs 1563 970.00 and loss of job 3 month EMI .
b) HOME LOAN PROTECTION PLAN: – For the same amount monthly premium Rs 950.00 for same term
c) TERM PLAN: – FOR same amount Rs 13000.00 per annum for same term. Now I want to know that is any other suitable plan for me? Please advice me cheapest and best plan.

The first option offers you a combination plan which covers a lot of things such as the valuables inside your house and your medical expenses in case of an accident. I don’t think that this will cover your home loan in case of your death. Option 2 and 3 are right but a little expensive.

I suggest – Buy an online term plan of Rs.30 lacs for yourself for a period of 25 years or more. This will be useful to your family even after the loan has been paid off.

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