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Unless you have insurance cover, if you die, the remaining loan will have to be repaid from your legal estate.
Some lenders automatically build into their terms and conditions that if you were to die, then the outstanding loan will be waived - this is in practice a form of death insurance cover. In the absence of this provision, in order to avoid your estate having to pay off the loan, you would need life insurance to guarantee that the loan would be paid off.
Life insurance pays out a tax-free lump sum if you were to die whilst the policy was in force. Most life insurance policies also provide what is called "terminal illness" cover. This means that if you are diagnosed by a doctor as having any condition from which you were expected to die within 12 months of diagnosis, then the life policy will pay out immediately rather than delaying the payout until you have passed away.
You will have the choice of buying a level term life insurance policy or a decreasing term life insurance policy. Of the two, the "decreasing" policy will be the cheaper. You will find lots of information about life insurance, and the options available to you, elsewhere on this web site.
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