It's the old "nanny state" debate... In France, life insurances are mandatory when you get a mortgage. However, one still has to be particularly careful with insurance policies. My mother died to a cancer, a few years after she contracted a loan. However, the insurance company refused to pay off the loan. The contract was nullified as she didn't mention a disease she had 15 years before (unrelated the the cancer that killed her).
Because that's literally an unfair subsidy for insurance companies off the backs of homeowners. Insurance isn't a scam, but it is trading some reward to decrease risks. Probabilistically, you're better off saving the insurance money. I'm not saying that's the best choice for everyone, but it should be a choice.
Personally, as a single adult I'd never consider life insurance——nobody would be financially ruined if I died, so I'm much better off rolling all excess money into the stock market.
Life insurance is to protect the people that rely on your income, not pay off your debts (I don't think this is a deep insight, I just think it is the sensible way to talk about it).
If you have children and only insured the value of your house, you probably need to buy more (but of course you might have discussed a simplified version of your situation or whatever).
That's the reason I'm fairly confident the insurance company will take care of everything.
Out of self discipline I bought a life insurance at the same time my home loan was approved; the insurance amount being same as loan amount.
I have always wondered why don't Government have regulations in place that forces a borrower to purchase a life insurance. Or at least make the borrower opt into insurance by default with the option of opting out.
Left to themselves borrowers are not likely to think about insurance at the time of taking loans. I think by nature we underplay risks to our life because of which our loved ones end up suffering financially over and above emotionally.