Is Life Insurance Mandatory For A Mortgage? 
No , life insurance is not usually mandatory for a mortgage . When PMI -LRB- private mortgage insurance -RRB- is required due to a low down payment , that is not the same as Life Insurance . PMI exists to protect the lender , and only pays the lender the amount that is owed them . It has a high cost compared to regular Life Insurance . While having regular Life Insurance is a great way to cover a mortgage -LRB- it goes to your beneficiary so they can pay off the house , put it away and live off the interest , or whatever works best -RRB- , lenders do not usually require it . If you have put enough down , they are in OK shape just taking your house if you die . All the more reason to get life insurance . 