You purchase car insurance to protect yourself and your loved ones in the event of a car accident. Similarly, you purchase life insurance to ensure the financial wellbeing of your loved ones in the event of your untimely demise, and you purchase homeowners’ insurance to cover your losses in the event of an accident or natural disaster. What about your marriage? Can you purchase insurance to protect yourself from the costly legal proceedings associated with a divorce?
Contrary to what you may be thinking, you can now actually purchase divorce insurance.
SafeGuard Guaranty Corp., a North Carolina-based insurance company, is offering customers the chance to purchase a type of divorce insurance called “WedLock.”
What is “Wedlock”?
Labeled the world’s first divorce insurance, WedLock provides customers with cash payments to cover the many expenses associated with a divorce.
How does it function?
SafeGuard provides you with the chance to purchase “units of protection.” Each unit of protection costs $15.99 per month and provides exactly $1,250 worth of coverage. To illustrate, if you purchased 12 units of protection, you would receive exactly $15,000 in coverage.
For every year that you and your spouse stay together, SafeGuard provides an additional $250 in coverage for each unit purchased.
When am I eligible to receive policy benefits?
Surprisingly, a WedLock policy does not fully mature (pay out to the customer) until 4 years after the date of its signing/execution. However, this time period can be lowered to 3 years if the customer purchases an insurance rider.
If I am eligible for coverage and in the midst of a divorce, how do I receive the policy benefits to which I am entitled?
Once the WedLock policy has matured and your divorce is officially complete, you
provide SafeGuard with a copy of the final divorce decree. Upon completion of this step, you would hypothetically be entitled to policy benefits.
Stay tuned for more news on this controversial topic from our Ft. Worth family law blog …
This post is for informational purposes only and is not to be construed as legal advice. To learn more about divorce, contact an experienced and skilled legal professional.
Related Resources:
- Divorce Insurance (Yes, Divorce Insurance) (The New York Times)
