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Do You Need Divorce Insurance? Take This Quiz and Find Out.

By paulabernstein |

What are the chances you’ll get divorced?

SafeGuard Guaranty Corp., a North-Carolina based insurance company, is happy to tell you. The company has figured out the statistical probability that your marriage will end in divorce. They’re also offering WedLock, what they claim is the first-ever divorce insurance, according to The New York Times.

SafeGuard’s web site features a Divorce Probability Calculator, which claims to predict your probability of getting divorced within a 13% margin of error.

By asking questions about race, religion, educational background, age, children, among others, the calculator can gauge your marital prospects based on actuarial information. Basically, if you didn’t finish college and got married before 21 to someone of a different race and religion, the odds aren’t in your favor.

I input my information and I’m happy to report that according to the calculator, my husband and I have a “very low probability” of divorce. Phew.

But in case you don’t score as well, here is how divorce insurance works.

You can buy coverage in “units of protection,” which will provide financial coverage in case of divorce. You know how expense those nasty legal proceedings can be! Not to mention the cost of setting up a new house. Each unit costs about $16/month and provides $1,250 in coverage. In the case of divorce, WedLock will send you cash that amounts to the coverage you purchased.

As The Times points out, this doesn’t seem like such a good deal. For one thing, “some divorces are relatively amicable and may not cost tens of thousands of dollars.” Also, aren’t you better off just saving the money in case you need it?

John A. Logan, chief executive officer of SafeGuard Guaranty, has an answer for that one. “There is nothing to stop your spouse from raiding those investments and taking it all. And then with all the money gone, you’re left with all the legal bills,” Mr. Logan, who came up with the idea for the insurance after his own financially draining divorce. He also makes the point that most people aren’t very disciplined about saving money for the proverbial rainy day.

What do you think? Would you consider divorce insurance?

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Photo: flickr/kenschafer

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About paulabernstein

paulabernstein

paulabernstein

Paula Bernstein is a freelance writer and social media manager with a background in entertainment journalism. She is also the co-author of Identical Strangers: A Memoir of Twins Separated and Reunited.

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0 thoughts on “Do You Need Divorce Insurance? Take This Quiz and Find Out.

  1. John Logan says:

    Paula,

    Thanks for the great post, and congrats to you and your spouse for beating the odds. Speaking of odds, let’s take a look at the odds of other risks that your readers might already have insurance coverage for. Odds are 1 in 300 that your house will burn down in any given year. A little higher for flood damage over the life of your mortgage – 1 in 60. And actuaries using standard mortality tables for Life insurance peg the odds of you dying over any 20 years in your lifetime at 8 out of 1000 (or 1 in 125). Disability comes in even more frequent at 1 in 80 but too few people are smart enough to insure their income (which is what disability insurance actually does) even though their income is what pays for everything else. Now let’s look at the odds of divorce, which BTW ordinarily results in a loss of 77% of your net worth according to a study done by Ohio State University and results in 44% of American families going below the poverty line for some period of time according to another study (Julia A. Heath and B. F. Kiker, “Determinants of Spells of Poverty Following Divorce”). The odds that you’ll divorce if you’re on your first marriage is 2 out of 5 (40%). And don’t feel safe just because you reached past that 8 year mark by which most 1st marriages fail, because there’s a big spike right around year 20. Look at Al and Tipper Gore if you think you’re immune. And for people already on their second marriage? Chances are high they already know the devastation that divorce can cause but their odds of marriage failure are 2 out of 3 (67%). Third marriages are almost 3 out of 4 (72% fail). The reality is that the risk of divorce is real and tangible. The cost of divorce is ruinous to most people but the cost of divorce insurance is relative to the size of the policy. However, if you do the math, the ROI is 62.9%. Find me some other investment that makes that kind of return and can’t be snatched by a greedy ex spouse and I’ll buy it myself. ;) Is it for everyone? No, but if it were, maybe you and I as taxpayers wouldn’t have to foot an annual bill of $112 BILLION dollars in Federal, State and Local taxes that go to support fragmented families every year. Food for thought for our government representatives. My personal advice to your readers? Go to the website and model a policy for yourself and see just how easy it is. It doesn’t cost a dime to look and everyone knows someone who needs Divorce Insurance. If it’s not you, then send this link to someone you know who does.

    Thanks again – John Logan

  2. [...] SafeGuard Guaranty Corp., a North-Carolina based insurance company, is happy to tell you. The company has figured out the statistical probability that your marriage will end in divorce. They’re also offering WedLock, what they claim is the first-ever divorce insurance. [...]

  3. [...] SafeGuard Guaranty Corp., a North-Carolina based insurance company, is happy to tell you. The company has figured out the statistical probability that your marriage will end in divorce. They’re also offering WedLock, what they claim is the first-ever divorce insurance. [...]

  4. [...] SafeGuard Guaranty Corp., a North-Carolina based insurance company, is happy to tell you. The company has figured out the statistical probability that your marriage will end in divorce. They’re also offering WedLock, what they claim is the first-ever divorce insurance. [...]

  5. A. Mitchem says:

    CommentsOnly in the state of North Carolina! I think it is a good idea, getting married is easy, getting out, expensive all the way around!

  6. Kris says:

    Brilliant, why didnt i think of this lol I could of made billions of dollars if i would of thought of this

  7. Dave says:

    If you want insurance, hide some cash in an offshore bank account before you get married. If you have family members who are financially and maritally stable (or gay), entrust some of your savings to them. And keep your passport up to date so you can offshore yourself until the ex finds some other dude to plunder.

  8. [...] Do You Need Divorce Insurance? [...]

  9. [...] Do You Need Divorce Insurance? [...]

  10. [...] Do You Need Divorce Insurance? [...]

  11. [...] Do You Need Divorce Insurance? [...]

  12. [...] Do You Need Divorce Insurance? [...]

  13. [...] Meanwhile, take this quiz and find out if you need divorce insurance. [...]

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