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Some of the most popular articles in the Life/Health channel of ThinkAdvisor (as measured by the vigorous comments that they engender) are those that take shots at (or sing the praises of) one type of financial or insurance product versus another.
In my opinion, these debates often display serious misconceptions about how insurance products work — and these misconceptions are not limited to a few online comments.
The detractors are often widespread, ranging from "experts" both inside and outside of the insurance business to celebrity financial pundits. It is sometimes hard to tell whether objections are based upon a lack of knowledge or are a dishonest attempt to gain a competitive advantage for the particular hammer in their toolbox.
(Related: Why Ken Fisher Hates Annuities)
But regardless, those of us who do understand these products often struggle to counter with honest, simple explanations. Insurance can get complicated and is boring. So simple but misleading criticisms are easy. Honest answers are hard.
