PMI - Your Heirs Get Nothing?

[Tara Allen]

Hello, I'm a newbie from Massachusetts just getting started. I'm considering a loan on a personal property that would require PMI.

In doing some research, I came across an article that said 1 reason to avoid PMI is that your heirs get nothing if you happen to die holding this policy. "They do not receive any monetary compensation on the property as the lending institution is the sole beneficiary of the policy, and the proceeds are paid directly to lender".

Does this hold true in Massachusetts and, does it make sense to have additional insurance to cover your heirs? I'm just curious, this is not the deciding factor on whether I take out the loan or not. 

I’d appreciate any feedback and look forward to connecting with other MA BP members! Thanks.