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Your Take: Divorce Insurance?

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Spend enough time reading pop culture magazines and websites and chances are you’ll stumble onto news about some movie star or music sensation insuring a body part. Lloyd’s of London is famous for insuring body parts like Celine Dion’s vocal cords, Troy Polamalu’s hair, and Keith Richards’ fingers. So I guess I was only a little surprised to hear, on Marketplace Money, that you can now buy divorce insurance! (I’m a little late to the party because the NYTimes Bucks blog wrote about it last August!)

Basically you pay $15.99 per month for a “unit” and a unit covers you for $1,250; you can buy up to 200 units. If you get divorced, you get paid out for your units. My gut feeling is that it seems pretty expensive, though I’ve never looked at how much it costs to prepare a prenuptial agreement. After a period of a few years, you might even want to divorce just to collect the check!

Would you ever consider divorce insurance?

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26 Responses to “Your Take: Divorce Insurance?”

  1. cubiclegeoff says:

    Seems ridiculous. But I believe I’ve read somewhere that much of the divorce rate is due to people that have multiple divorces, and so for some I guess it makes sense. I would prefer people put in a bit more effort before marriage though. And the people that went through a situation or whatever where divorce is the best way to go and could not be foreseen or whatever, not sure they would be thinking about insurance before hand and it wouldn’t help them.

    • Strebkr says:

      @cubiclegeoff – I hadn;t heard that about the people who get divorced multiple times, but thinking of extended family I know, there have been a few divorces and then remarry and have been married forever, but then there are a few who have been married 4 times. I don’t even know the current guys name. No point in committing it to memory for now.

  2. Strebkr says:

    Wow I guess you can insure about everything. Not sure how this is really insurance though. Its just someone spending money and then getting it back at a later date. My guess is, that if you are buying it, its not a matter of if you get divorced, but a matter of when.

  3. billsnider says:

    The whole idea seems pretty stupid to me.

    If you have that much assests, you can afford a lawyer to write up a prenup.

    However, I do know a guy who owned a pretty successful business. He got engaged to be married. His future wife refused to sign a prenup agreement. She said she loved him and would never divorce him.

    And yes, you guessed it. She walked out on him one month after the marraige and wiped out his savings and business bank accounts.

    Bill snider

    • Mike says:

      Did she kick him in the nads as well? That’s pretty awful.

    • bub says:

      After one month of marriage she would not be entitled to ANYTHING especially if it was all pre-marital property. Even in a community property state like California something like this would not happen for a marriage that lasted only 4 weeks.

      It is a proven fact that marriage is the leading cause of divorce.

  4. Shirley says:

    Insurance is to guard against a possibility, so I guess ‘Divorce Insurance’ passes the test, but it sure sounds ludicrous to me.

    Rather than feeling that this marriage is for life, it seems like the buyer is feeling beforehand that the marriage is temporary. For those I would suggest strong reconsideration or a pre-nuptual agreement.

  5. Monique Brown says:

    If you save up those premiums for a few years you can get divorced without worrying about the money!

  6. freeby50 says:

    Not a good idea.

    The insurance isn’t a ‘good deal’ financially. They have a 4 year waiting period. So you have to pay a minimum $768 in payments for the possibility of getting $1250. Even if 1/2 marriages fail then they’d be making $1536 for every $1250 paid out. But 90% of first marriages last 5 years. Most people will pay for years and never get any money out.

    If you think your marriage might fail then reconsider getting married before hand. If you’re all ready married then try counseling, it is likely a better investment.

  7. Ann says:

    This is horrible! What a terrible message to send! Must of have been a hungry insurance agent that came up with this idea.

    • daenyll says:

      I would go less with “hungry” and more “greedy” for word choice there. I think an insurance agent who’s not seeing something of a profit is an oxymoron.

  8. krantcents says:

    The cost of the insurance is way over the top! I have been married for 42 years, so I never thought about it. I spent time at the front end to make sure I had the right one.

  9. zapeta says:

    What a waste of money. Just hide the premium amounts in an offshore bank account and you’d be better off.

  10. My wife and I are happily married and do not believe in divorce. Now, things have gotten a little rocky before, but we’re in this together.

    Some of you may think I’m naive, but even if we did get divorced, it’s only money, and we’d each get half. There no sense paying insurance for it…

  11. Hm. In theory, it’s a great idea, if it actually works. Divorce is obscenely expensive.

  12. indio says:

    Divorces are only expensive if you have assets to fight over or if one person feels wronged and wants to be vicious. A prenup is fairly cheap to do compared to what you might end up paying at the back end. I’ve heard about some prenups that are horrendous and seem so inhumane. If the wife gains more than 10lbs from when they were married, even while pregnant, the husband can divorce without paying anything for alimony. Can you just imagine being in the lawyer’s office and having the bride to be step on a scale to document her current weight? In those cases, the wife is arm candy so there is the perception that she has all the time in the world to maintain herself. I wonder how many people who buy the divorce insurance, are women. I would think that’s who the product is targeted at since their earning potential is, most of the time, lower.

  13. Might this insurance be considered a marital asset and you’d end up giving half to him/her anyway?
    For those who are saying you should get the right one from the start…Please remember that people change. The person you fell in love with at 21, when you were both still pecking your way out of the egg, is not necessarily the same person 30 years later.
    Divorce happens. I initiated one myself. I wake up every morning grateful that I finally got out. Sometimes it is a legitimate thing. But yeah, it’s pretty expensive, too.

    • Jan says:

      I can understand why some choose to divorce
      But to answer your….
      Yes, people change. Alot.
      The key is to change together instead of apart.
      It isn’t easy.
      The most divorces I have seen are in 20+year marriages.
      We are going strong at 28+ but everyday is a time for changing. It is work. Sometimes it feels like way to much work.

      Divorce insurance—life insurance is a better possibility since our commitment is “till death”.

    • Shirley says:

      Divorce doesn’t have to be expensive if it is a mutual agreement. I typed up the forms for my first marriage, he filed them and went to court. The total cost was only the filing fees.

      We had 15 years and two children together and were both in our early thirties. We each signed agreements concerning the kids and the house and cars and then became very good friends until his death 20 years later. Second husband and I have been married for 32 years and I doubt that we will do a heck of a lot more changing. ;-)

  14. tbork84 says:

    I can’t imagine that even having one of the most expensive lawyers in the country write up a prenup would be more expensive than this.

  15. “The key is to change together instead of apart.”
    @Jan: That’s a lovely sentiment, in theory. But it isn’t always possible if you can’t agree on shared goals — or if one party has no intention of changing because s/he likes things the way they are now, i.e., things are to his/her benefit.
    It’s nice that you’ve been able to change together. But to think that this “key” fits the door of every troubled marriage is simplistic and a little insulting (i.e., “You’re not trying hard enough”).
    “Sometimes it feels like way too much work” — again, it sounds as though you think people divorce because it’s too hard to be married. If only it were that simple. Some of us divorced for very valid reasons.

  16. eric says:

    Wow, you really CAN get insurance on everything…


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