The lender that provides your home loan is typically the vendor that sells mortgage life insurance to you, as well. When death occurs, the lender is paid the benefit of the policy, so that their portion of your loan is paid off.
Life insurance can be used to cover a mortgage, however. It is more competitively priced than mortgage insurance and the death benefit does not decrease as your loan decreases. The beneficiary is the person of your choice. They can use the money to pay off the mortgage, or else spend it on other things if it makes more sense to keep the mortgage.
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Life insurance can be used to cover a mortgage, however. It is more competitively priced than mortgage insurance and the death benefit does not decrease as your loan decreases. The beneficiary is the person of your choice. They can use the money to pay off the mortgage, or else spend it on other things if it makes more sense to keep the mortgage.