Is it not the case that, in the event of your demise, the mortgage insurance proceeds are paid out to the lender to cover the outstanding principal? I was always under the impression that that is how it works.
Personally, I would rather have my money going to my spouse and family to do with it as they see fit. If my life insurance payout was sufficient to cover the mortgage principal and take care of my family then I would feel more comfortable with that.
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