Consumer Reports MONEY ADVISER
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       "If you watch TV, you've probably seen the cranky-as-Daffy AFLAC duck slipping around an ice rink, sweating in a steam room, or riding a roller coaster. Apparently, he has made quite an impression. The marketing campaign won the 2003 CEBA (Creative Excellence in Business Advertising) Award and mentions on "The Tonight Show" and "Saturday Night Live." Life is so ducky for this bird that he has been immortalized with his own bobble-head doll.

       The ads are so amusing you may never realize exactly what AFLAC sells. In the U.S., three supplemental insurance products - policies that you theoretically need to fill the gaps in existing coverage - make up nearly three quarters of AFLAC's business: a short-term disability plan, a policy that pays to treat injuries from accidents, and a plan that covers cancer care. Annual premiums range from about $300 to $600. The policies are available only through employers but you typically must foot the bill.

       All three policies are extremely restrictive. Say you're disabled from a major stroke or heart attack. In general, you can forget about using that cancer or accident insurance. And more than 60 percent of its disability policyholders have coverage that lasts just three or six months. For serious medical events, you may need a lot more time away from work, and short-term disability policies are not designed to cover extended absences.

       "These narrow policies don't meet the criteria of wise ways to spend your insurance dollars," says Robert Hunter, director of insurance for Consumer Federation of America, a nonprofit consumer-advocacy group. Health insurance should protect you from catastrophic medical expenses. So instead of fearfully throwing gobs of money at specific threats like cancer and accidents, make sure that you have the best major-medical policy you can afford. It will cover cancer treatments, injuries from accidents, and anything else that ails you. As for disability insurance, you're better off buying or beefing up a long-term policy. It's those longer absences from work that can bankrupt you. Or use the money you would have spent on a short-term disability policy to create an emergency cash fund. Financial planners recommend keeping enough money on hand to cover six months of expenses."
       Editor's Note: Consumer Reports, the trusted, independent consumer group debuts with a focus on money decisions people have to make in their everyday lives. Regular topics will include retirement, taxes, savings tips - and anything that's current and helpful to readers. Subscription details can be found online at www.ConsumerReports.org.