A mortgage lender is usually the one who offers mortgage insurance. If you die while your mortgage is due, the coverage pays out your debt. Your home is typically your most valued asset, and it’s critical that it is safeguarded in the event of your death. Term life insurance is a better option for covering your home obligation.

This is a distinct form of insurance. If you miss a payment for any reason, mortgage default insurance will cover the remaining loan sum (not just death).