Home loan protection plan or term cover: How borrowers should choose
Last Update Date: 05-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar explained that a protection plan's premium can be added to the loan but then attracts interest for the full tenure, while a term plan stays in place if the loan is prepaid or moved. He suggested pairing the two.
More of Abhishek's views on debt and loans
After RBI barred lenders from forcing borrowers to buy bundled third-party products, the article compares two ways to cover a home loan: a home loan protection plan and a term insurance plan. It sets out the pros and cons of each, and suggests matching the policy tenure to the loan and resisting pressure to buy through the lender.
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Home loan protection plan or term cover: How borrowers should choose