Many lenders and insurance companies offer mortgage
life insurance that will pay your mortgage off if you die. For most
homeowners, this is a lousy deal. Mortgage life insurance is just too
expensive. If you want to make sure your heirs have enough money to
pay your home-loan off when you die, it would be much cheaper to
purchase term life insurance for the number of years your mortgage
will last. You can consider buying mortgage insurance if you're in
poor health, your medical problems prevent you from getting an
inexpensive term life policy, and the insurer who offers the mortgage
life insurance does not require that you take a physical examination.
Otherwise, you should probably skip mortgage insurance.