Reflections

Would You Buy Divorce Insurance?

Posted by on Aug 7, 2010 | 9 Comments

If you don’t have enough insurances like life, auto, home and health insurances, there is now one insurance you can add to your list. A company called SafeGuard Guaranty Corp. is now offering divorce insurance online. They even  provide a Divorce Probability Calculator to determine your odds of not remaining in martial bliss [see link below]. On their website the company states the following information:

Would you make a bet that might cost you your house? Are you someone who would turn over your life savings to a complete stranger without knowing their qualifications and background? Are you someone prone to street drag racing? If so then you’ll probably be comfortable without Divorce Insurance. However, if you make educated financial decisions after careful research, you work hard at protecting your hard earned assets and you’re someone who wants to ensure that their family is protected against living in poverty for any amount of time, then like the Boy Scout motto of “Be Prepared”, you’ll want to know more about Divorce Insurance.

We know it’s a lot to think about. We know it’s not something ANYONE really likes to think about, but neither is death or disability and we’ll wager that if you already have a sound financial plan, then you have insurance coverage against one or both of those. Divorce is no different. In today’s society the risk is real and tangible. No one knows what the future holds and if you’re like most people, you already know someone who has suffered some dire financial consequences as a result of divorce. More than likely through no fault of there own.

So there you have it. Divorce insurance for those who might want to protect against the possibility of getting a divorce. But I know what you are thinking? How much is this going to cost me?

The insurance can be bought in units at $15.99 a month for $1,250 of protection.  Need $12,500 of protection?  Well, you can do the math.There is also a $250 yearly management fee as well.

What do you think. Is this something worth getting?

Comments welcome.

Divorce Probability Calculator

Source – SafeGuard Guaranty Corp.

Source – NY Times

  • Gibson

    I LOVE IT

    Ty for allowing comments :) your blog posts are interesting.

    • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

      Thank you Gibson

  • http://concordnclawyer.com North Carolina Divorce Lawyer

    This is an interesting concept but this may assist individuals in paying the legal cost and fees associated with filing or defending themselves in a divorce.

  • Buffet

    Might not be a bad idea for those foolish enough to “tie the knot” in the first place? Doesn’t pertain to me because I’m WAAAY too young to even think about getting married!

    • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

      How young is too young?

  • Buffet

    Ron, to find that out you’ll hafta cut me in half and count the rings. LOL. http://www.motivatedphotos.com/?src=rss&id=97442

    • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

      LOL Thanks Buffet

  • http://www.wedlockdivorceinsurance.com John Logan

    Ron, Thanks for the post but let me add an important clarification. The $250 per unit per year is an add on to the benefit the policy holder receives, not a “management fee” or any other form of subtractor. The value of the policy goes up every year, but the premium stays the same.
    And with regard to the math – Let’s use your $12,500 example, but it could just as well be $125,000. $12,500 – $7,675.20 (paid in premium at 48 months) = $4,824.80 or 62.9% ROI on $7,675.20 invested. I’m a pretty savvy investor myself, but I don’t know where I can get a guaranteed 62.9% return on my investment. Do you? If so, please point me to it! It only seems expensive if you need it and don’t have it. And just so you know, the odds that your house will burn down in any given year are 1 in 300, for flood it’s 1 in 60 over the lifetime of your mortgage; the odds that you’ll die in the next 20 years is 1 in 125, the odds that you’ll be disabled in the same 20 years is 1 in 80. However, the odds that you’ll get divorced in that same 20 years? 2 out of 5 if it’s your first marriage (40% of first marriages fail – usually within first 8 years), 2 out of 3 if it’s your second marriage (67%) and almost 3 out of 4 if it’s your 3rd or more (72%). While we’re certainly not suggesting that people forego other insurance coverage for this, the risk is real and considering that 44% of American families go below the poverty line after a divorce, we think it deserves the same kind of consideration that is given to other forms of insurance that are integral to anyone’s good financial plan.

    • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

      Thanks John for the clarification.