It depends on your own decision. If you want to cover your life risk, then go in for life insurance or just want to protect your house from loosing by your nominees, then go in for home loan insurance.
If you take life insurance, it will cover your home too. But if you take home loan insurance, it will not protect your life risk.
In order to get a Loan, you first need to prove that you don't need it.
Ultimately it depends upon the individual, paying potential, tenure of the loan he is going for, age at which he is taking the insurance etc etc. Home loan insurance plane has slight better advantages but premium is higher than conventional life insurance policies.
Home loan insurance is a decreasing term life insurance. Means you are insured for the full loan amount initially & as you pay the EMIs, your insurance amount decreases.
It is always better to go for term insurance plan as it is available in less premium (compare to home loan insurance if you see actual assured sum) . Don't take any other plan like ULIP or endowment if you are only thinking of insurance.
Home loan insurance is just a customise marketing product.
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