Most of the banks now a days, ask the customer to take a term insurance equal to the loan amount and hypothecate to the Bank. This will protect bank as well as the dependence of the customer in case of the death or permanent disability to the customer. If your bank has not instructed this, take a term insurance equal or above the loan amount .For investment, take the options like equities (direct trading) and mutual funds.In your case, it is better not to mix. Insurance with investment.
