Yes! Life insurance is a financial tool that has many uses. One of those is to protect your loved ones and dependants from financial hardship resulting from your loss of life. I'll put it this way: If something happens to you tomorrow who is going to pay the mortgage? If your wife or other family members aren't able to make mortgage payments they may be forced to sell the home, which takes time. If it doesn't sell fast enough they could lose the home all together. It is hard enough for your loved ones to go through your loss of life. It's another thing all together to put them through financial hardship as well.
While a good idea, it is not required by law to purchase a life insurance policy in order to get a mortgage. I assume what you are referring to is Mortgage Protection Insurance (MPI), which would pay your beneficiary so that they could pay off your mortgage in the event of your death. This is not to be confused with Private Mortgage Insurance (PMI) which is required to protect the lender in case of foreclosure, and is a legitimate requirement for borrowers who cannot put down over 19% on a home.
The Consumer Financial Protection Bureau announced a crackdown this month (April, 2013) on mortgage insurers who give kickbacks to mortgage lenders in return for business. So don't let your lender make you purchase mortgage insurance from a certain company in order to get a mortgage. If you do wish to protect your mortgage in the case of your death, buying a simple level Term policy is often the most cost effective solution.
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The Consumer Financial Protection Bureau announced a crackdown this month (April, 2013) on mortgage insurers who give kickbacks to mortgage lenders in return for business. So don't let your lender make you purchase mortgage insurance from a certain company in order to get a mortgage. If you do wish to protect your mortgage in the case of your death, buying a simple level Term policy is often the most cost effective solution.