What type of insurance pays off the mortgage balance if the insured dies?

Mortgage insurance is specifically designed to pay off the mortgage balance in the event of the insured's death. This type of insurance provides a financial safety net for the borrower's family or heirs, ensuring that they are not left with the burden of the mortgage after the borrower passes away. It usually serves as a form of protection for lenders, but it can also offer peace of mind to homeowners knowing that their family would not lose their home due to financial difficulties following their death.

Homeowner insurance, while essential for protecting the physical structure of the home and personal belongings, does not typically cover mortgage obligations. Marine insurance pertains to the transportation of goods over water, which is unrelated to residential property financing. Miscellaneous insurance is a broad category that may cover various risks, but it is not specifically targeted at addressing mortgage balances in case of death. Therefore, mortgage insurance is the most appropriate choice for this scenario.