Is Life Insurance On A Mortgage Compulsory? 
No , life insurance on a mortgage is not compulsory . However , if you can not make a down payment of 80 % or more when you secure your mortgage , you will probably be required to purchase PMI -LRB- Private Mortgage Insurance -RRB- . The lender may ask you to purchase PMI through them , and it can be costly . Term life insurance , by contrast , is usually cost effective and an excellent vehicle for protecting both your mortgage and your lender . 