Bundled home loan insurance: No portability for single premium plans
Last Update Date: 06-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar pointed out that borrowers are sometimes sold policies that do not cover the loan risk or that end before the loan does. He said bundling limits choice to the lender's partner insurers, and that the cover should be a term plan that clearly discloses its premium and exclusions.
More of Abhishek's views on insurance
Following a National Housing Bank directive on mis-selling, the article explains that borrowers need not buy insurance from their home loan lender. It covers the costs of bundled policies, such as interest on financed premiums and limited choice, the lack of portability for single-premium plans, what to look for in cover, and how to complain if mis-sold.
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Bundled home loan insurance: No portability for single premium plans