A term policy is the preferred option for covering home loan liability

A home loan protection plan could pose problems if you wish to switch or foreclose your loan

With housing prices remaining range-bound for several years and interest rates on home loans also at a low level, this is a good time to buy a house. When you apply for a home loan, your lender could, while approving it, push you to buy a home loan protection plan (HLPP).

But the liability of a home loan can also be covered by a plain-vanilla term plan. Instead of succumbing to pressure from the lender, understand the pros and cons of the two options and make an informed decision.  

What is HLPP? 

Lenders insist that borrowers get a home loan insurance cover so