Better Not to Jump? Dallas Morning News (04/28/03) Vol. 32, No. 4 p.1D; Raghunathan, Anuradha
Consumer advocates say that credit insurance is not as useful as it sounds and that it is frequently misunderstood, too expensive, and aggressively sold. Credit insurance can serve those without life insurance or disability coverage as well as older or unwell consumers. ACLI Chief Actuary Paul Graham says that credit life insurance is intended to cover debt without evidence of insurability. ACLI's 2002 fact book cites government figures that state that not quite 70 percent of U.S. households have some kind of life insurance, and consumer advocates contend that more traditional life insurance is a better bet than credit insurance. Federal regulators are looking into credit insurance.