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Would You Get Divorce Insurance?
Divorce Insurance
Updated: Thursday, 23 Sep 2010, 9:39 AM EDT
Published : Thursday, 23 Sep 2010, 9:39 AM EDTWhen divorce rates are high and economic times are low, there's a new option out there for people worried marriage might not be forever. It's called divorce insurance.
John Logan is the CEO and Founder of Wedlock Divorce Insurance. Logan says he's introducing this new coverage for failed marriages to the world.
"What we cover is the potential for financial losses as a result of a divorce proceeding," says Logan.
The product is sold as individual policies. You buy it in units of coverage. Each unit is valued at $1250 at a cost of $15.99 per unit. For instance, if you bought 10 units of Divorce Insurance; it would cost you $159 a month. After four years of marriage if you find yourself heading for divorce, you would get paid out $12,500 in the end.
Policy holders can buy up to 200 units of divorce insurance which is $250,000 in coverage. After the required 4 year waiting period is over, the policy goes up in value every year by $250.00 per unit.
"The only way you can file a claim with us is to actually submit your court stamped divorce document whether it is a divorce decree or marriage dissolution decree depending what state or county you¿re in," says Logan.
Divorce attorney Sheila Norman has handled many marriages that have gone from bliss to bust.
"Not very romantic but it could be a way to fund a prenup and make sure the money is going to be there at the end of the relationship," says Norman.
She believes divorce insurance might work for some. "In these economic times a lot of times people are staying together because it¿s the only way people can pay their debt. There's a big aspect of attorneys fees and court costs. There are so many parts of the relationship that you can't control," says Norman.
Divorce survivor Shannon Smith is skeptical. After his divorce, Smith was left stressed and financially strapped.
"I know I got all the credit cards and I had half the income. My credit went through the floor," says Smith.
Smith crunched some numbers to see if divorce insurance could have helped him. He used our example of buying just 10 units of divorce insurance at $159.00 a month.
"Which means you paid out $7,675. You'll get back $12,500. So, already you only have about $4000 dollars up," says Smith.
He says it wouldn't be enough. "It's been 10 years, 13 years since my divorce was completely final. There are still child custody issues and lawyers fees that are cropping up even now.¿
Smith is happily re-married and focuses on what he has now. As far as Logan and his new divorce insurance company, he says his client list is growing fast.
"In fact our first client was a very big premium," says Logan.
Divorce Insurance
Updated: Thursday, 23 Sep 2010, 9:39 AM EDT
Published : Thursday, 23 Sep 2010, 9:39 AM EDTWhen divorce rates are high and economic times are low, there's a new option out there for people worried marriage might not be forever. It's called divorce insurance.
John Logan is the CEO and Founder of Wedlock Divorce Insurance. Logan says he's introducing this new coverage for failed marriages to the world.
"What we cover is the potential for financial losses as a result of a divorce proceeding," says Logan.
The product is sold as individual policies. You buy it in units of coverage. Each unit is valued at $1250 at a cost of $15.99 per unit. For instance, if you bought 10 units of Divorce Insurance; it would cost you $159 a month. After four years of marriage if you find yourself heading for divorce, you would get paid out $12,500 in the end.
Policy holders can buy up to 200 units of divorce insurance which is $250,000 in coverage. After the required 4 year waiting period is over, the policy goes up in value every year by $250.00 per unit.
"The only way you can file a claim with us is to actually submit your court stamped divorce document whether it is a divorce decree or marriage dissolution decree depending what state or county you¿re in," says Logan.
Divorce attorney Sheila Norman has handled many marriages that have gone from bliss to bust.
"Not very romantic but it could be a way to fund a prenup and make sure the money is going to be there at the end of the relationship," says Norman.
She believes divorce insurance might work for some. "In these economic times a lot of times people are staying together because it¿s the only way people can pay their debt. There's a big aspect of attorneys fees and court costs. There are so many parts of the relationship that you can't control," says Norman.
Divorce survivor Shannon Smith is skeptical. After his divorce, Smith was left stressed and financially strapped.
"I know I got all the credit cards and I had half the income. My credit went through the floor," says Smith.
Smith crunched some numbers to see if divorce insurance could have helped him. He used our example of buying just 10 units of divorce insurance at $159.00 a month.
"Which means you paid out $7,675. You'll get back $12,500. So, already you only have about $4000 dollars up," says Smith.
He says it wouldn't be enough. "It's been 10 years, 13 years since my divorce was completely final. There are still child custody issues and lawyers fees that are cropping up even now.¿
Smith is happily re-married and focuses on what he has now. As far as Logan and his new divorce insurance company, he says his client list is growing fast.
"In fact our first client was a very big premium," says Logan.
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