I read a lot about the benefits of buying credit insurance.
What is the 'bad' news?

Answer: There is no doubt that credit insurance can reduce credit risk but credit professionals should recognize that:

• Insurance companies are not in business to lose money
• Normally, coverage will be denied to certain customers
• Usually, coverage will be less than the amount requested by the creditor company on some accounts
• Policies typically have an annual maximum payment.

Some credit insurance policies allow the insurance company to reduce or withdraw coverage for any covered account at any time upon delivery of notice to the insured [the creditor].