Final answer:
To protect a 30-year mortgage, Mortgage Protection Insurance is the best fit as it is specifically designed for this purpose, with Term Life Insurance also being a suitable option. Whole and Universal Life Insurance are not tailored for mortgage protection.
Step-by-step explanation:
To protect a 30-year mortgage obligation, the type of insurance that specifically caters to covering the outstanding balance of a mortgage upon the death of the borrower is Mortgage Protection Insurance (C). This type of insurance is designed to pay off the remaining mortgage debt in the event that the borrower dies before the loan is fully paid. This ensures that the borrower's family will not be burdened by the mortgage payments and can keep their home.
However, it's important to note that Term Life Insurance (A) is also a viable option for protecting a 30-year mortgage obligation. Term life insurance provides coverage for a specified period, which can be set to match the term of the mortgage. A policyholder could get a 30-year term life insurance policy that would provide a death benefit to their beneficiaries, which could then be used to pay off the mortgage.
Whole Life Insurance (B) and Universal Life Insurance (D) are types of permanent life insurance that provide coverage for the policyholder's entire life, regardless of the length of a mortgage. They have different benefits such as cash value accumulation, but they are not specifically designed for mortgage protection and are typically more expensive than term life insurance.