Is Life Insurance Mandatory For Home Loans? 
No , Life Insurance is not mandatory for home loans . There is a type of insurance that is required for government backed mortgages , or if you can not make over a 20 % down payment on a private loan . This is called PMI , or Private Mortgage Insurance . It pays the lender if you are unable to pay your mortgage payments . This is different from buying voluntary Life Insurance that would pay off your mortgage if you died . 