To put it bluntly, this insurance means that in case something happens after you borrow money, the insurance company can return the money you lost to the lender as the principal and interest of the loan.

Because legally speaking, when a person dies, the debt is gone.

In order to avoid risks, the lender requires you to take out this insurance to ensure that they can receive insurance money as the beneficiary of the policy in case of accidents. To ensure that their risk is the lowest.

You're okay. They ask you for money. In case anything happens to you, they ask the insurance company for money. In short, they have no loss.