Loan insurance generally refers to accidental injury insurance, which requires the lender to insure the sum of the loan principal and interest with a commercial insurance company. The insurance period is the loan period. This is a kind of risk management means of lenders, and most of them are mandatory. It is generally pure accident insurance, so the rate is low and the premium will not be too high.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.