Why Do I Need Life Insurance With A Mortgage? 
You do not need to have life insurance with a mortgage . If you borrow more than a certain amount , you will need to purchase PMI -LRB- private mortgage insurance -RRB- that will repay the lender what is owed them , if you pass away . Life insurance , on the other hand , will pay off your entire mortgage and leave the excess to your beneficiary to pay other bills . If your mortgage interest rate is so low that your beneficiary wants to keep paying the mortgage and invest the life insurance proceeds , they can so that , with regular life insurance . So , while life insurance is not required with a mortgage , it is an excellent idea . 