When I was working as a Residential Mortgage Loan Officer, it was simple to calculate a Mortgage Life Insurance rate. It wasn’t difficult at all.  It was solely based on the process of the applicant breathing.  If they breathed, had a heartbeat, they qualify.  So for me, it didn’t seem like a hard sell since most of my applicants did breathe.  The lender that I worked for explained the importance of having me sell the program.  They said, “Sell the program to all your customers because, in case the mortgage holder dies or becomes disabled, they are covered”.  I didn’t think too much into the program.  I thought, what a benefit for the customer.  What a benefit of protecting the customer in the event of a major catastrophe in their life.  It wasn’t difficult selling feature.  But then I thought about the importance of having the lender sell this type of policy.  Figure, of all mortgage holders that have a 30yr mortgage, how many actually outlive their 30yr mortgage?  How many of them turn around and sell the home after five years?  The numbers are astonishing.  Most people don’t realize that four out of every five homeowners sells their home after five years.  That’s crazy!  What a waste of money to four of the five families if they decide to sell this home, close on the mortgage, lose one to five years payments of mortgage life insurance, to start all over again and purchase another home.  So, that leaves one homeowner that possibly stays in their home for more than five years.  I could only imagine how many of the 20% stay in the home for 10 years.  It’s too difficult for me to imagine.  But, I could bet you that the mortgage lender knows exactly how many of them do.  Is there some type of benefit to mortgage companies to offer mortgage life insurance to mortgage holders during the mortgage application phase?  Of course!  Lenders would consider this type of mortgage life insurance cheap and affordable since it protects the mortgage companies’ investment.  Think about this, their investment to you is covered if you die or become totally disabled.  Before considering this, I would definitely shop around.  Find a life insurance company that allows you to cancel (or start) your policy during the life of the loan.  See if there’s a company out there who could give you the best affordable rate and maybe even additional coverage. I would say that mortgage life insurance to most mortgage customers is an afterthought to the principal and interest.  But every customer has different goals.  For me, I am single and no children.  But what happens if you’re married and have children?  What do they do if your hot able to make the payment?  Think what happens to your family after you leave this world.  Now, mortgage companies calculate life insurance in many different ways.  Most life insurance companies base the policy on simple things like, your height, weight, age, if you smoke, term of the loan, or the loan balance.  Some base the payment on nothing at all but you being alive.  Its simple, find the best Mortgage Life Insurance rate for you, if you want to protect your family due to your death or disability.