Jacksonville Divorce Lawyer Blog
A new North Carolina insurance company – SafeGuard Guaranty Corp. — has introduced what it is calling the world’s first divorce insurance product at wedlockdivorceinsurance.com.
Profiled in a recent New York Times blog, Safeguard says its divorce insurance is a form of casualty insurance that will cover the costs of divorce, including legal fees. The divorce insurance is sold in “units” of insurance protection, with each unit equaling $1,250 in initial coverage and costing $16 per month per unit.
To keep couples that are on the verge of divorce from buying divorce insurance to cover their expenses, the policy does not kick in for 48 months following the effective date. However, the company offers an “Accelerated Maturity Rider” that decreases the waiting period from 48 to 36 months. If you get a divorce before the maturity period ends, the premiums you have paid for the policy will be returned to you, minus any taxes paid by the insurer.
After the maturity period ends, divorce insurance benefits increase by $250 every year without an increase in the premium. The policy is renewable annually, and as long as you keep renewing it, the premium will never go up, according to the company’s website. The maximum payable benefit is $250,000.
The company also offers a Legal Separation Rider, which provides for a payment of half the face value of the policy if a separation occurs after the maturity date.
A potential downside: the policies are not covered by any state guaranty funds so if the underwriter – Prime Insurance Co. – were to go bankrupt, your policy would be worthless. The company says it plans to have future policies fall under state guaranty programs.