Mortgage Protection Life Insurance
A mortgage term life insurance policy helps guarantee your loved ones a tax-free benefit in the event of your death — funds they can use to help with mortgage payments. Policy terms are available for 15 or 30 years. Premiums can be paid monthly, quarterly, semi-annually, or annually.
Although it usually makes sense to consider taking out life insurance to cover your mortgage loan it is not normally compulsory. If you were to pass away the lender/bank would be able to reclaim the remaining loan amount from your personal estate (thus rendering life cover irrelevant for the lender).