The type of insurance that is required to get a mortgage if less than 20% is offered as down payment for a home is called PMI (Private Mortgage Insurance). PMI protects the lender in case of foreclosure.
Life insurance that protects the borrower in case of the borrower's death is generally not required for mortgages. However, many borrowers buy life insurance to pay off the mortgage if they should pass. That way their family can stay in their own home even if there is no longer enough income coming in to make the house payments.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Why do you need life insurance on a Mortgage? You don't unless it's a contingent of aquiring the loan and acts as a means to reassure the company loaning the mortgage money that they will be repaid in case of death during the mortgage period. In this way you are covering your loan responsibililty.
The other way this could be taken is should you carry enough life insurance to cover your mortgage among other things? The answer is going to depend on the individual. If you want your significant other and kids to remain in the home after you've died, an insurance policy takes care of that. Completely an individual's choice. You don't have to, but if the ability of your spouse to continue to pay for the home after you've passed is too difficult, they lose you, they lose the home. Honestly, I've met people where that just fine with them. It's not what I'd do to my family, but I can't speak for everybody.
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Life insurance that protects the borrower in case of the borrower's death is generally not required for mortgages. However, many borrowers buy life insurance to pay off the mortgage if they should pass. That way their family can stay in their own home even if there is no longer enough income coming in to make the house payments.
The other way this could be taken is should you carry enough life insurance to cover your mortgage among other things? The answer is going to depend on the individual. If you want your significant other and kids to remain in the home after you've died, an insurance policy takes care of that. Completely an individual's choice. You don't have to, but if the ability of your spouse to continue to pay for the home after you've passed is too difficult, they lose you, they lose the home. Honestly, I've met people where that just fine with them. It's not what I'd do to my family, but I can't speak for everybody.