Do we need loan insurance for Private Money

[Alex Ng]

The Title says it all. Currently met lender  who offers extremely good terms. 7% int only split over 2 years. He didn't ask for any upfront fees but does require payment for loan insurance. The loan insurance company seems legit. The loan consultant i met online referred me to this lender had a valid NMLS. I was wondering if loan insurance is a norm when borrowing private money? Want to know if I am walking into a scam