Your family stays in the home.

The mortgage doesn't go away

A mortgage is secured by the property, so it outlives the borrower. Family members generally don't become personally responsible for the debt — that's typically handled through the estate — but the loan stays attached to the home, so the payments still have to come from somewhere. A family usually has a few paths, and which ones are realistic depends on money.

• Keep the loan going

  Federal rules generally let a surviving relative take over an existing mortgage without the lender demanding the balance at once, and they can ask about a modification or hardship options. It works if the payment can still be made each month.

• Refinance into their own name

  Often possible, but the survivor has to qualify on their own income. If the household relied on two incomes, or on the higher of the two, the new payment may be out of reach even at a good rate.

• Sell the home

  This clears the debt and returns any remaining equity. It also means leaving — often the neighborhood and the school district too, at the hardest possible time.

Life insurance doesn't change which paths exist — it changes whether they're affordable. The payout goes to the person you name, who can put it toward the payments, pay the loan down or off, or use it for whatever the family needs most.

General information only, not legal or financial advice. These are common paths, not a complete list, and what applies to a particular household depends on the loan, how the property is titled, and state law.