A mortgage is an fixed agreement that is made when we take some loan from the bank and keep our property or house papers with the bank so that if we are not in the condition to pay back the loan than the government has all the rules to take the property or house, sell it and take the money. mortgage insurance is a policy which provides special features that if the person who took the loan and kept the property as mortgage dies, than the bank gives upto 12 months time to the family so that they could repay the money and take back the property else the property is handed over to the bank and bank can do anything based upon the situation.