It depends on your definition of "necessary". It used to be common practice for mortgage companies to sell credit life insurance that would pay the mortgage in the case of the borrower's death. These policies aren't sold much anymore because they weren't really a good value for the borrower. The rates were high and the death benefits fell over time with the balance of the mortgage.
It's usually a good practice to have life insurance in place to pay off any debts you have including a mortgage. To do this the right way you really need to consider the bigger picture of your life. A mortgage is just one piece of the puzzle that is your financial life. When considering how much life insurance you need, you have to determine what will happen if you die and where that will leave the survivors.
Find an agent you can trust and go through the process of this planning. Nobody likes thinking about their death, but the situation exists whether you plan for it or not.
Life insurance is not necessary to get most mortgages. If you put down under 20% for the down payment, you may be required to get PMI (Private Mortgage Insurance) in order to obtain the mortgage. That is not regular life insurance, but a policy created just for the purpose of paying off what you owe the lender, in the event of your death.
Many people do choose to buy term life insurance to pay off their mortgage, so that their loved ones can stay in the home if they were to pass while the mortgage is not yet paid off.
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It's usually a good practice to have life insurance in place to pay off any debts you have including a mortgage. To do this the right way you really need to consider the bigger picture of your life. A mortgage is just one piece of the puzzle that is your financial life. When considering how much life insurance you need, you have to determine what will happen if you die and where that will leave the survivors.
Find an agent you can trust and go through the process of this planning. Nobody likes thinking about their death, but the situation exists whether you plan for it or not.
Many people do choose to buy term life insurance to pay off their mortgage, so that their loved ones can stay in the home if they were to pass while the mortgage is not yet paid off.