Loan insurance is a type of financial product that assists with loan repayment in the event of an unforeseen occurrence such as job loss, partial or permanent disability, or sudden death. In such cases, a loan insurance helps you in avoiding loan default and protects your family from the burden of loan repayment.
TFL extends loans with a loan insurance cover, but it is up to the borrower to buy the policy cover or reject it. There are several advantages to buying a loan protection insurance plan such as:

1. In the case of unfortunate events such as job loss, accidental death or temporary disability, loan insurance plans reduce a borrower’s outstanding loan, and protect his or her monthly loan payments.
2.With a loan protection insurance plan, the borrower’s family will not be burdened with a sudden financial obligation to repay the loan.
3.Some loan protection insurance plans can provide tax benefits under Section 80C.
4.Some loan insurance policies have money-back plans where the buyer receives a certain amount at the end of the plan.