Which type of mortgage creditor insurance protects against the death of the borrower?

Creditor life insurance is designed specifically to provide financial protection in the event of the borrower’s death. This type of insurance ensures that the mortgage balance is paid off, relieving the borrower's beneficiaries from the burden of the debt. This protection can be critical for ensuring that surviving family members do not face financial hardship due to an outstanding mortgage after the loss of the primary earner.

In contrast, creditor disability insurance covers situations where a borrower becomes disabled and unable to work, creditor job loss insurance provides support in the event of involuntary unemployment, and creditor critical illness insurance offers protection against specific health conditions that can significantly impact a person's ability to earn an income. Each of these types focuses on different scenarios and financial needs but does not address the specific situation of the borrower's death.