Loan companies rely on mortgage insurance coverage to protect themselves from defaulting mortgage borrowers. If a home loan buyer does not make the installments, then the insurance company pays to the mortgage company. Mortgage companies acquire their insurance from insurance firms and pay premiums on the same. Life Insurance are and then passed on to the buyers in the mortgage. Buyers may have to spend on the premiums on an total annual, monthly or single-time base. The insurance payments are included with the monthly payments of the residential. Mortgage insurance policies are also called Private Mortgage Insurance or Lender's Mortgage Insurance.