Should you opt for home loan insurance or a term insurance policy?


Q: I have taken a home loan last year in august from pnb bank of rs.13,50,000/- for 20 years. pnb is suggest
me to buy a home loan insurance from pnb met life company but at that time i didn’t buy. Now i plan to
buy a home loan insurance. So i want to know that which is the best insurance company to buy the
insurance or i will go with pnb met life. PNB met life is offering me 25000/- app premium for one time
for both (me and wife) are life covered. So please suggest me a best company and what is the amount?

Ans: Instead of taking a home loan insurance of only 13.5 lacs it is better you take a term plan of minimum
50 lacs. Now you have a lot of options of term plan in the market which are offered at really low
premiums. Some of the options you have are –

1. HDFC Click 2 Protect
2. LIC eTerm
3. Reliance Online Term Plan
4. Aviva iLife

To add, if you want to buy a separate cover for your home loan then a one-time premium of 25,000
with PNB is not a bad idea too.

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