Life Insurance is only paid out when someone dies, or becomes terminally ill and is given 12 months to live within the cover period.
If this happens and your mortgage has already been paid then one of two things happens. This depends on the kind of cover that you’ve chosen:
If you chose *Level Cover* then you/or your family/friends would get the lump sum payment that you chose when you took out your Life Insurance policy.
If you chose *Decreasing Cover*, then the lump sum would have decreased over time (often alongisde your mortgage payments). The exact amount would depend on the amount you started with and the time that has past.