There are many benefits of taking out a lifetime mortgage including being able to choose what happens to your monthly mortgage repayments. Even though you technically have a balance, many decide to let the interest roll up so that they don’t have to make those monthly payments.
Keep in mind that your home is sold after you die or move into long-term care as a way to pay off the remaining mortgage balance. If you do not make those monthly payments, there may not be anything left afterwards to go towards inheritance, if this was something you planned.