Is Life Insurance Necessary For A Mortgage? 
Life insurance is not necessary to get most mortgages . If you put down under 20 % for the down payment , you may be required to get PMI -LRB- Private Mortgage Insurance -RRB- in order to obtain the mortgage . That is not regular life insurance , but a policy created just for the purpose of paying off what you owe the lender , in the event of your death . Many people do choose to buy term life insurance to pay off their mortgage , so that their loved ones can stay in the home if they were to pass while the mortgage is not yet paid off . 