There is a product called mortgage life insurance. Apparently if I have the insurance and I die , the insurance will pay the bank the remaining mortgage.
It is for the bank's protection, not mine. So I don't understand why I am paying the premium.
Mortgage Life insurance is not required by law, and in most places it is probably illegal for a lender to force you to buy it as a condition of the loan. However, that doesn't stop them from trying to convince you that it is in your interest or providing incentives to get you to buy it.
Honestly, you are better off just buying a term-life insurance policy that would also provide your heirs a way to pay of the mortgage if you kick the bucket.
So to answer your question, you pay for it because you would be the one deciding to buy it.