On the other hand, there are insurance policies that cover both insurance and investment. Under such a policy a person gets risk cover along with a promise of return at the end of the loan tenure. On the expiry of the loan period, the borrower is entitled to both the sum assured and the accumulated bonus till that time. The premium in such cases is higher.

There are also free insurance covers and concession on insurance cover given by the banks. In some cases, the house is insured for the loan amount to cover the risk on account of damage to the property. If the borrower passes away untimely, the insurance company pays the amount due on the repayment of a loan. This helps to reduce the financial burden of the borrower's family under such a situation.

Also, there are cases where the insurance company collects the entire premium for the repayment period in advance on the basis of the rate applicable to the particular age group. The sum assured under this scheme is equal to the loan amount for which the life cover is available.

Presently, the market is flooded with ample of products that aim to secure loan dependents and hence one can decide for a plan that suits him the best.