Who Sells Mortgage Life Insurance? 
The lender that provides your home loan is typically the vendor that sells mortgage life insurance to you , as well . When death occurs , the lender is paid the benefit of the policy , so that their portion of your loan is paid off . Life insurance can be used to cover a mortgage , however . It is more competitively priced than mortgage insurance and the death benefit does not decrease as your loan decreases . The beneficiary is the person of your choice . They can use the money to pay off the mortgage , or else spend it on other things if it makes more sense to keep the mortgage . 