The report suggests a growing shift in borrower behaviour, as customers view home loan insurance as a financial protection tool rather than a product bundled with a housing loan by lenders.
According to the analysis, nearly 70% of home loan insurance buyers are between 31 and 45 years of age, indicating that borrowers in their peak earning years are taking greater steps to protect their families from the risk of outstanding loan liabilities.
The largest share of purchases came from borrowers aged 36-40 years, followed by those in the 41-45 and 31-35 age brackets.
The trend comes at a time when home loan ticket sizes and repayment tenures are rising.
Policybazaar’s data shows that 40-45% of insured borrowers have home loans ranging between ₹50 lakh and ₹1 crore, while another 20-25% have loans exceeding ₹1 crore. The average insured loan size stands at ₹50-75 lakh, with borrowers typically opting for loan tenures of 12-15 years.
The report found that salaried professionals account for nearly 80-85% of home loan insurance buyers, reflecting stronger adoption among households with stable income streams and long-duration financial commitments.
Geographically, metro cities continue to dominate demand, contributing around 70-75% of total purchases. Delhi-NCR emerged as the largest market, followed by Mumbai, Bengaluru, Lucknow and Pune. However, Policybazaar noted that demand from non-metro locations has accelerated over the past two months, suggesting growing awareness of protection products in Tier-2 cities.
A key finding of the report is that the fear of leaving behind unpaid home loan liabilities for dependents has emerged as the biggest trigger for purchasing insurance. Borrowers are increasingly opting for standalone home loan protection plans to ensure that outstanding housing debt is covered separately, allowing their broader life insurance cover to remain available for family needs and future financial goals.
The analysis also highlighted increasing participation by women borrowers and dual-income households. Most insured home loans involve joint applications, with spouses acting as co-applicants.
Policybazaar said customers are also being drawn by the cost advantages of buying home loan insurance online. According to its estimates, online policies can be up to 72% more cost-efficient than traditional offline offerings over a 20-year loan tenure, while also providing greater flexibility in premium payment options and claim structures.
Commenting on the trend, Vivek Jain, Chief Business Officer – Life Insurance at Policybazaar, said the sharp rise in adoption reflects a growing awareness among borrowers about protecting large financial liabilities. He added that many customers now prefer dedicated home loan protection cover so that their term insurance corpus remains available to support their family’s future financial goals.
First Published: Jun 9, 2026 3:53 PM IST
