Mortgage Loan: 5 Things You May Be Surprised To Know Buy Life Insurance – Although life insurance is not a requirement for most mortgage loan lenders, it is definitely something that many lenders will take into consideration when evaluating your mortgage application. By demonstrating that you have enough life insurance to cover the mortgage loan, there is a higher likelihood that they will approve your application, because they know there is less of a chance they’ll have to go through the difficult process of handling your mortgage loan if you were to suddenly pass away.