A house will probably be the most expensive purchase you make in your entire life. Because of this, it becomes your most prised material asset. Some people or lenders might suggest that you get mortgage insurance to protect your home and your family in the future. But whilst this might sound like a good idea at first, you have to think things over before going for it. Mortgage Insurance has a dark side that a few know about and here's why.   1. The insurance you buy for this only covers your mortgage balance.   2. Your mortgage insurance can be denied for health reasons you did not disclose right away. A simple chest pain, for instance, diagnosed by your doctor before can be misread as a symptom of a heart condition.   3. Most bank staffers or lenders who sell mortgage insurance do not have the knowledge to explain the underlying details. Because of this, a lot of information can be left out.   4. Mortgage insurance benefits the banks or the lenders. In the case that the sole breadwinner of the family passes away, mortgage insurance just pays the bank the remaining mortgage amount that hasn't been paid. It seems better, then, to get life insurance instead of mortgage insurance.   5. Although your mortgage debt lessens over time, your principal still remains the same.   Banks and lenders may offer mortgage insurance when you buy your home but think twice before signing any contracts. It might be better and more practical for you to spend that money on life insurance instead.