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Will my family lose our home if I die without mortgage insurance?
The Ugly Alternatives
First, they could continue to make the mortgage payments after your death. However, this assumes that they too are parties to the mortgage, as is typically the case between husband and wife. Otherwise, the mortgage will most likely be payable in full at your death. Your heirs could negotiate with the bank to keep the mortgage, but the mortgage company does not have to agree.
The alternatives may not be practical or palatable. For instance, your four sons could pay off the mortgage and keep the house free and clear of any loans. Obviously this is not possible if they do not have sufficient resources or liquidity. In that case, they may have to sell the property and pay off the mortgage with the proceeds. This too may be an unpleasant result if you intend to keep the property in the family.
Life insurance, albeit expensive at times, certainly has its advantages.
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