Credit life insurance pays off a loan if you die. Credit disability insurance and credit involuntary unemployment insurance cover limited monthly payments if you become sick or unemployed.

For any of those products, here are some twists consumer advocates say you should watch out for:

• Credit insurance is optional. An auto dealer or appliance salesperson can’t require it as a condition of getting a loan — or a lower interest rate.
• Never pay the entire premium up front. If you do, the cost usually is financed into the loan and you pay fees and interest on it. Consumer advocates say this is the biggest abuse of the system. You should be able to pay premiums throughout the contract, as you do with any other insurance.
• The credit insurance costs should be reported separately. Your monthly loan payment should highlight the premium.
• Watch out for two new products used by some banks called “debt cancellation” and “debt suspension.”

They work almost exactly like credit insurance — you pay a fee, and your debt goes away if you die, become disabled or lose your job. But since the lender is forgiving its own loan, the service is not considered insurance and isn’t subject to regulation by state insurance departments.