Is Life Insurance On A Mortgage Compulsory? 
Life Insurance on a mortgage IS NOT compulsory however the mortgage or lending company may require you to have life insurance with the company listed as the beneficiary until the loan is paid off . This is what we call a Collateral Assignment . If there is any benefit remaining after the loan is paid off , in the event of your death , the remaining listed beneficiary 's will be paid according to the percentages listed . 