Which type of insurance is issued by insurance companies to creditors to cover the lives of debtors for the amounts of their loans?

The correct choice is credit life insurance, which is specifically designed to protect creditors by covering the outstanding debts of borrowers in the event of their death. When a borrower takes out a loan or a line of credit, the lender may require them to have credit life insurance as a condition. This insurance pays off the remaining balance of the loan directly to the lender if the borrower passes away during the term of the loan. This helps ensure that the debt does not become a financial burden on the borrower's dependents or estate.

Other types of insurance, such as group insurance and individual insurance, do not serve this specific function. Group insurance typically covers a group of people under a single policy, often provided through an employer, while individual insurance is purchased by an individual for personal coverage. Group credit insurance is often considered a broader term that can include various forms of coverage for groups of debtors, but credit life insurance is the targeted product that directly addresses the need for life insurance in relation to debt repayment.