Insurance policy on loan?

[Daniel Ordonez]

Ok I have a private lender willing to fund me/ offer a line of credit but I have a question because I’ve never ran into them asking for their loan to be insured. So they had me fill out an application on a website for their loan to be insured and the insurance company asked for a 2k fee. Is this standard practice or am I just being paranoid? I don’t want to give someone my money and lose out on a deal! Any advise would be appreciated thanks.