Term plan works better for covering home loan liability, say experts

Home loan protection plan may only cover accidental death, which could leave the borrower's nominees exposed

With home purchases bouncing back, home loan volumes are also set to rise. A home loan is usually the largest financial liability a person takes. Failure to repay the home loan means the lender could take over the house, which has been mortgaged to it.

To avoid such a situation, it makes sense for borrowers to purchase a life insurance cover that will protect them against the risk of their family losing the home.

Two options

Two types of life insurance covers can be purchased to safeguard against risk of the borrower’s untimely death.

The first option is a traditional