Insurance that is designed to pay the balance of a loan if the insured dies before the loan has been repaid in full is

Whole life insurance is a permanent life insurance policy that provides a death benefit and accumulates cash value over time. While it offers lifelong coverage, it is not specifically designed to pay off loans but rather provides general financial security and a death benefit to beneficiaries.

Universal life insurance is another form of permanent insurance that combines flexible premium payments with a death benefit. Although it allows for adjustments in coverage and premiums, it does not serve the specialized purpose of paying off a loan balance in the event of the insured's death, making it unsuitable for this specific need.

Credit life insurance directly correlates with loan agreements, paying off the outstanding balance of a loan if the insured passes away. This type of insurance is specifically tailored for that purpose, ensuring that borrowers do not leave debts behind for their beneficiaries.