If you drive a car, you probably have a car insurance policy. The same thing goes for homeowners. But most of us would not think about insurance for our marriage. The truth is that divorce is expensive. And the number of people who divorce each year is much higher than the number of people who lose their homes to disasters. But is getting divorce insurance a good idea?
A company in North Carolina has started selling “WedLock” insurance for divorce. The policies are available throughout the country, including in Georgia. Individuals can pay a monthly premium. In exchange, they will receive a payout if they get divorced after the policy has matured.
How It Works
Policyholders pay $16 each month for every $1,250 in coverage they want. The more they pay, the more they receive if they get divorced. But there is a catch. The policy must “mature” for four years before any money can be paid out. If a person gets divorced before it has been matured, they do not receive anything.
One or both spouses could take out a WedLock policy. In fact, John Logan who started the company says that anyone could purchase a divorce insurance policy for anyone else. But the person listed on the policy must be the person who would receive insurance if he or she became divorced.
Concerns About Divorce Insurance
So is getting divorce insurance a good idea? Probably not, say some family lawyers. There are a few reasons WedLock may not be the best approach:
- Taking a divorce insurance policy out is like betting against the marriage. Perhaps a prenuptial agreement would be a better way to protect your interests in the case of divorce down the road.
- Each time you pay the premium, you may be tempted to consider divorce. That cannot do anything to help your relationship with your spouse.
- There is no guarantee that the money you receive in a payout will not need to be divided as a marital asset.
Although it may be tempting to get divorce insurance in light of our country’s divorce rate, there are other alternatives that are likely better options. Divorce is a legal matter, and people considering divorce should discuss the situation with an experienced family law attorney.
Source: Keloland Television, “I Do’ To Divorce Insurance,” Angela Kennecke, 13 Sept 2010