Is Life Insurance On A Mortgage Compulsory? 
It is not mandatory to have mortgage insurance . There are three types of insurance for a mortgage . The first is private mortgage insurance which is required by lenders when borrowers put down less than 20 % of the purchase price . The second is insurance that is placed on the borrower and will pay off the mortgage should the borrower die . The third is insurance that is placed on the borrower but is no connected to the mortgage , only to the borrower . His heirs can use the funds to pay off the mortgage if they want to but are not obligated to . 