Is this just a different way to collect child support?

There is over $100 billion in unpaid child support waiting to be collected. Much of that will never be paid no matter how much effort is put into the problem. State government and commercial child support collection agencies work hard to collect delinquent child support.

State governments collect child support for those who receive welfare benefits. That is because regular child support prevents child poverty and reduces government costs for poverty programs.

Commercial child support collection agencies collect child support to make money. They typically charge a 33 percent fee of child support collected for their services. That means for every $300 in child support collected, the agency earn $100, leaving the balance for the child.

Child support insurance is a way to prevent the need for collection efforts. Unemployment is the biggest source of unpaid child support. With this product, those who buy the insurance will never get behind in their child support, even though they’ve lost their jobs. Total cost of the program is the premium paid. Unlike collection services that charge a fee for child support collected, this program pays all due child support to the parent.