Your private mortgage insurance should be escrowed with your monthly mortgage payment; but the more important question is, "How can I avoid having to pay for PMI?"
Remember, PMI doesn't protect you; it only protects your lender.
As long as you have a good payment history, you should be eligible to get rid of your PMI requirement once you have approximately 20% equity in your home.
Private mortgage insurance would pay your lender the insurance if you were to die before the mortgage is paid off.
Mortgage term life insurance can provide money for your family to use to pay off the mortgage if you die, and they may have additional money left over to help pay for their other living expenses.