A Loan Insurance (Term Plan) is a type of insurance policy designed to cover the outstanding loan balance in the event of the borrower’s death or disability. It ensures that the loan is repaid in full, even if the borrower is unable to continue making payments due to unforeseen circumstances.The insurance is usually linked to the loan amount, such as a home loan, personal loan, or auto loan. The coverage amount is typically equal to the outstanding loan balance or the loan amount at the time the policy is taken.
