What type of insurance coverage covers the lives of more than one debtor with a single policy?

The correct answer is joint credit life insurance, which is designed specifically to cover multiple debtors under a single policy. This type of insurance is particularly useful in the context of loans or credit agreements where two or more individuals are jointly responsible for the repayment. In the event of the death of one of the covered individuals, the policy pays out a specified benefit to cover the outstanding debt, ensuring that the financial burden does not fall entirely on the surviving debtor.

In contrast, term life insurance, whole life insurance, and universal life insurance are primarily designed to cover the life of a single individual. While they may provide benefits to the beneficiaries upon the individual’s death, they do not cater to the specific needs of covering multiple debtors like joint credit life does. Therefore, joint credit life insurance uniquely addresses the requirement of protecting both debtors collectively, making it the most appropriate choice for this scenario.