Isn't that what life insurance is for? Or do I need both?
Private Mortgage Insurance (PMI) or FHA Mortgage Insurance is required by the lender on any home that you do not have 20% down on the mortgage. It only pays the bank if your home is foreclosed. It is not a protection for you but a protection for the bank and doesn't cover you if you lose your job or die unless the home is foreclosed on.
Some people buying home put 20% down and get a mortgage for the other 80%, this way they don;t have to pay for mortgage protection for the bank.
Also, homeowners may buy a 30 year level term life insurance policy which is usually cheaper than mortgage protection insurance and provides coverage for the 30 year term, and the amount of life insurance does not decrease over the term or period of the life insurance policy. With this type of life insurance the death benefit goes to your spouse (beneficiary) if you die during the 30 years, and your spouse can use the money for any reason, including to pay off the mortgage on your home, or pay for any living expenses, etc. Here's how you can learn more about mortgage term life insurance plans.