system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: What happens to a mortgage or similar loan if the person getting loaned to dies?
gpt
When someone dies, their assets and liabilities become part of their estate.  This normally includes the house (as an asset), life insurance proceeds (another asset), and some types of loans (liabilities).  The assets can be used to pay liabilities and remaining assets are given to heirs.  Paying off the mortgage after the death of the family breadwinner is one of the big reasons people purchase life insurance.