> 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.

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.