You don't need to have life insurance with a mortgage.
However, if you do borrow more than a certain amount, you will need to purchase Private Mortgage Insurance that will repay the mortgage lender what is owed them, if you pass away.
Life insurance, on the other hand, can help to pay off your entire outstanding mortgage loan, and leave the excess to your beneficiary to pay other bills, or use for any purpose.
If your mortgage interest rate is so low that your beneficiary wants to keep paying the mortgage and invest the life insurance proceeds, they can do that, with a regular life insurance policy.
So, while life insurance is not required with a home mortgage, it is an excellent idea to help provide financial security and protection for your family to remain in the home they shared with you, in case you die.
Learn more about mortgage life insurance and how it works.
However, if you do borrow more than a certain amount, you will need to purchase Private Mortgage Insurance that will repay the mortgage lender what is owed them, if you pass away.
Life insurance, on the other hand, can help to pay off your entire outstanding mortgage loan, and leave the excess to your beneficiary to pay other bills, or use for any purpose.
If your mortgage interest rate is so low that your beneficiary wants to keep paying the mortgage and invest the life insurance proceeds, they can do that, with a regular life insurance policy.
So, while life insurance is not required with a home mortgage, it is an excellent idea to help provide financial security and protection for your family to remain in the home they shared with you, in case you die.
Learn more about mortgage life insurance and how it works.
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