Insurance cheapen the mortgage

To reduce the initial payment on the mortgage from the standard 20-30 to 10%, some banks are offering borrowers to insure the liability. After all, not wanting to take unnecessary risks and to lower the fee below 20-30%, some lenders offer a "buy" the right to a reduced fee. To this end, the borrower asked to insure their liability under the loan agreement in favor of the bank. If in case of default of the borrower of the pledged housing is not enough to pay off debt, pay the difference to the bank insurance company. Fee for the right to reduce the initial payment can hardly be called symbolic. Policy is not less than 10% of the amount by which reduced the initial payment, or an average of 1,5-3% of property value. But this policy is paid once and is valid for all or almost the entire loan period, not annually, as other insurance applications to the mortgage. Is it profitable? For details, see the article "Police instead of money" (Vedomosti).