Safeguard Guaranty Corporation, in partnership with Prime Insurance Company, has announced that they are the first company in the world to offer divorce insurance, called “Wedlock” divorce insurance. The companyy’s website, which opens to a romantic bride and groom in a field, warns people to “insure your marriage against divorce”. As opposed to death insurance, which is commonly referred to as “life insurance” this company makes no apologies for designating the policies as “divorce insurance” rather than “marriage insurance”.
The insurance is an annually renewable policy that provides a lump sum if the marriage ends in divorce. There are varying amounts of insurance that can be purchased, and the company states that the value of the policy increases the longer the policy is held, while the premium remains stable.
The company’s website provides a link to a “divorce calculator” which allows prospective customers to estimate the cost of a divorce, either through litigation or mediation. The company defaults to certain set amounts, but in recognizing that costs differ throughout the country, allows the user to input his or her own estimate. Interestingly, the default numbers for mediation are over three times less than litigation.
To guard against people purchasing the insurance on the way home from their divorce lawyer’s office, the company sets a standard 48 month waiting period, but that may also be reduced with the purchase of a rider. The policy owner does not have to be the insured, so these policies could be purchased as a gift.
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