As I was perusing the World Wide Web a few days ago, I ran across an article that was of extreme interest to me as a family law advocate. The article was entitled: “Love & Money: Divorce Insurance? Really?” This article peaked my interest because I had never heard of the concept of divorce insurance. As I am sure that I am not the only individual who was unaware of this concept, I will share what I learned from this intriguing article.
Apparently there is a North Carolina based company called SafeGuard Guaranty Corporation, which offers divorce insurance. If fact, they claim to be the first company in the world to offer such a service. The product has been named WedLock. This particular insurance product is designed to decrease the costs associated with divorce, including legal fees.
Coverage for this divorce insurance is sold through “units of protection” that cost $15.99 per month. The WedLock website describes divorce insurance as “an annually renewable, premium guaranteed form of casualty insurance that provides a lump sum of cash (based on initial claim value units of $1,200 per unit purchased up to $250,000) that is paid if your marriage ends in divorce.” Each unit increases in value by $250 each year after the policy’s maturity period ends and the premium stays fixed.
In addition to providing divorce insurance, WedLock also has a handy Divorce Probability Calculator, so that customers or visitors to its site may measure the risk for divorce. If you find that you have a high chance of divorce, WedLock also has a Divorce Cost Calculator to help you determine how much insurance you should purchase.
As a family law advocate, I am not quite sure what to make of SafeGuard’s new product. A few of the questions that came to my mind regarding the product are: 1) What if a couple who decides to obtain this insurance remains married? 2) How would one approach his or her spouse regarding obtaining this insurance? 3) Would having this insurance available encourage divorce? 4) Does this insurance cover both parties’ legal fees and divorce related expenses, or just one party’s? These questions are only a sample of the questions that prospective customers should consider before purchasing a product such as this. Perhaps the wisest investment is not in divorce insurance, but in the marriage.
By A. Latrese Martin, Law Clerk, Meriwether & Tharp, LLC