The beneficiary of a mortgage insurance is the lender. In the event of a payout, it doesn’t pay off the car loan. It doesn't help out with bills and expenses, even temporarily. There is no money provided for college/university for your kids or even you to upgrade your skills. What good is a roof over your head if you can't heat the house or feed the people in it?
Insurance is peace of mind; it should financially cover all aspects of a tragedy, not just your mortgage payments.
Life insurance can cover your mortgage and much, much more.
I can show you the best payout options that benefit you and your family at the same (or lower) rates you are paying for your mortgage insurance now.