The insurance industry has found a new product to sell to would-be insured: Divorce insurance.
SafeGuard Guaranty Corp of North Carolina introduced WedLock, which is the world’s first divorce insurance, designed to offer financial assistance in the event of a divorce to help cover some of the associated costs, from moving to a new home and help with legal bills.
The insurance is sold in increments, or units, in which a customer pays $15.99 per month for up to $1,250 of coverage. The more units purchased, the higher the monthly premium (multiply by $15.99) and the more protection there is for the insured. Each year, unit coverage increases by $250. Should you get divorced, you’d get a lump payment for the amount of coverage purchased.
There are some caveats; most importantly the policy has to mature. There is a minimum four year waiting period before claims can be made to prevent scammers from signing up and then divorcing immediately.
The company has a website that can answer all your questions about the product, including how much it would cost, insurance riders available to add to the policy, and how to file a claim.
Be warned that there is no insurance for the insurance, which means if the company goes bankrupt or out of business, you’re out of your money and the policy. You should also figure the entire cost of the policy. Buying ten units could cost over $150 per month, an investment you may want to make in a savings account.