Lenders won't automatically forgive a mortgage because a homeowner has died. If the mortgage (which remains with the property) is a joint mortgage, the surviving co-owner(s) must keep making the mortgage payments.
If no one else’s name is on the mortgage, the mortgage may need to be paid off within a certain time frame after the homeowner dies. Sometimes lenders allow the homeowner's heirs to assume the mortgage, but the heirs must agree to either continue making the mortgage payments or sell the home to cover the balance of the mortgage debt.
Failure to pay the mortgage can lead to a forced property sale or foreclosure.
MPI acts as a backstop. By paying off the mortgage, your family or heirs can hold on to the home without having to worry about paying off the mortgage.