Home Loan Insurance Calculator India — HLPP Cover & Premium 2026

Last updated: 29 April 2026 Reviewed by Deepa Krishnan, CFP

**Home Loan Protection Plan (HLPP)** is a decreasing term insurance that covers your outstanding home loan amount. If you pass away during the loan tenure, the insurance pays off the remaining loan so your family does not lose the house. Premium is typically 0.3–0.5% of the loan amount annually. This calculator estimates the premium and decides if HLPP is worth it for your loan.

Home Loan Amount (₹)

Home Loan Interest Rate (% p.a.)

Loan Tenure (Years)

Monthly Home Loan EMI —

Annual Insurance Premium (Est.) —

Monthly Premium Cost —

Total Premium Over Loan Tenure —

View Year-by-Year Breakdown

Real-World Examples — 2026

₹50 lakh home loan — HLPP cost

₹50 lakh loan at 8.5% for 20 years: EMI = ₹43,391. HLPP annual premium: approximately 0.3–0.6% of loan = ₹15,000–₹30,000/year. Total premium over 20 years = ₹3–6 lakh. A separate term insurance of ₹1 crore for a 30-year-old costs ₹10,000–₹12,000/year — covers the loan plus provides family with additional corpus.

Banks financing HLPP into the loan

Banks often add HLPP premium to the loan amount. For ₹50 lakh loan with ₹2 lakh HLPP premium added: new loan = ₹52 lakh. Extra EMI: ₹1,762/month. Over 20 years, total extra = ₹4.2 lakh (because you're paying interest on the premium too).

Frequently Asked Questions

What is Home Loan Protection Plan (HLPP)?

HLPP (or mortgage insurance) pays off the outstanding home loan if the borrower dies or becomes permanently disabled during the loan tenure. Banks often insist on HLPP when sanctioning home loans. The cover reduces with the outstanding loan balance.

Is home loan insurance mandatory in India?

No. RBI has clarified that home loan insurance cannot be made mandatory by banks. However, banks may strongly recommend it. You can opt for a separate term insurance plan of equivalent cover — it's often cheaper and provides more flexibility.

HLPP vs separate term insurance — which is better?

Separate term insurance is typically better: broader coverage (not linked to loan), fixed cover (doesn't reduce), portable (applies even if you switch banks), and usually cheaper. HLPP premium is higher because it's bundled with bank services. Calculate total cost before deciding.

Is this calculator free?

Yes, completely free on CalcPhi.

Are my inputs stored?

No. All calculations run in your browser.

Is it mobile-friendly?

Yes. Works on all modern smartphones.