Many home owners take out insurance through their banks to protect their families in the event that they were to have an accident, become critically ill, or die. The problem with mortgage insurance is that the amount of the benefit is tied directly to the amount of your mortgage, and all funds are paid out to the bank.
By purchasing a regular, stand-alone life insurance policy, you provide a tax-free benefit to your family that will allow them to pay off the mortgage balance and keep any funds that may be left over.