Offered lower interest rates on home loans and car loans when you buy insurance? It may not always come cheap; here's how IRDAI proposes to change it

Taking a home loan or car loan often comes with an insurance offer from the bank or lender. Borrowers may also be told that buying insurance is necessary to get the loan or to secure a better interest rate.

So, when does an insurance offer linked to a loan become a genuine benefit for the borrower, and when could it become an additional cost that the borrower did not really need?