Banks push reducing-cover home loan insurance (₹0.5 L single premium for ₹1 Cr loan) but a level-term plan (₹1 Cr for 30 yrs) costs similar. Pros of term: cover remains even after loan prepayment, family gets sum insured, independent of property. Cons: medical test, slightly higher rejection. We model two scenarios: early death (term better) vs loan closure (insurance wasted). Recommendation: buy 20-yr level term equal to loan amount and skip bank-linked cover. Keywords: home loan insurance, term plan vs reducing cover, mortgage protection.