Posts Tagged ‘Wedding’

Okay, I don’t know where I was in August of this year, ( I really do know) but apparently I wasn’t paying attention to that there was a new insurance to be had, Divorce Insurance.  This novel insurance became available for the first time in America on August 5, 2010, with the launch of the online insurance website, The company sells individual policies which can be purchased in units with coverage ranging from $1,250.00 per unit to a maximum of 200 units or $250,000 in coverage. After 48 months (four years) the policies mature but insureds can purchase additional riders at $30.00 per unit to reduce the waiting period to 36 months (three years). If a marriage should fail after the policy matures, the couples walk away with a cash payment equivalent to the amount of coverage purchased.

From the financial perspective, even with the high cost of divorce today divorce insurance does not seem very cost effective.  From what I understand, if a standard policyholder who purchased 10 units divorced after 10 years, they would have paid over $19,188 in premiums.  The insurance company would pay them $27,500, which would be taxed over the amount of their premium payments.  To receive this settlement, they would have to be divorced, which could cost $30,000 on the average to well over $100,000, per attorney, on the high end where there are issues of child custody, retirement, business or property ownership to resolve.

If you believe the current statistics that 40 to 50% of first marriages end in divorce, then 50 to 60% of those who purchase divorce insurance will never see a return on their investment and will lose everything they have paid in.  On the flip side, for those ‘lucky enough’ to capitalize on their investment by divorcing, there would be costly legal fees and a break-up of their family structure.  I don’t know about you, but I don’t think I would get married to someone who wants to purchase Divorce Insurance.  Then again, I don’t want to get married at all, so maybe I am the last person you should be listening to on this one.  Maybe you should head on over to WedLock Insurance Company and make up your own mind!

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