You Had Your Marriage Cover - Now How About Divorce Insurance


Divorce can be an expensive business, and an unexpected event too when something goes pear-shaped in a relationship. Thus it appears to make sense to have divorce insurance in our back pocket. Unless, of course, we are totally convinced we are never, ever likely to find our partner indulging in the pastime the Spanish call a ‘peccadillo’.


So How Come Divorce Insurance is Not Rife in the USA


We could hardly describe divorce as an accident in America, seeing as we have a 40 - 50% divorce rate. Perhaps wedding and divorce are part of the same process, given that polygamy is a more popular alternative in some places.

In 2005, John A Logan, CEO of Safeguard Guaranty Corporation reputedly developed a divorce insurance product. Wikipedia thinks he created the company, and the product “as a result of Logan's own financial turmoil following his infidelity based divorce in 2002”. However, the product never went to market.

Someone in the U.S. did however have a stab at it in 2010. This was in the form of a policy named WedLock underwritten by Prime Insurance Company, a Utah based surplus lines insurer. Surplus lines are generally those where the financial risk is too high for mainline insurers to accept. This presumably was the case because Prime cancelled the service abruptly the next year.


How Would Divorce Insurance Work If It Existed


Divorce insurance files under category insurance, whereby the policy pays out in the event divorce happens. The amount of cover depends on the number of blocks the client purchases. Once an elimination period of several years passes - during which it is in suspense - the cover increases every year for as long as it holds. Honey, I want a divorce? Can you wait another two years so we get a decent payment doll, could happen someday.


An Urban Legend from the Streets of Mainland China


A persistent rumor reached our desk regarding a mysterious company called Yanguang Life insurance Company in Jinling Hotel 25F, Chongan District, Wuxi, Jiangsu, 214000, Wuxi, China. It may or may not still be selling divorce insurance because our Chinglish literacy levels are rudimentary.

We have heard the divorce rate has soared in China to the extent the courts enforced a cooling-off period. The Yanguang Life insurance Company mission is "to provide a method for creating financial security for individuals who want to invest in themselves. rather than risking their long term financial goals on investments that can go down faster than they go up."

PTEET sells car rental accident damage protection at a price to beat the rest.  We have no elimination stage or waiting period. Our cover should go live at the touch of a button. You could pay as little as $9 for the day you hire.

Image: Divorce Doesn't Have to Be Ugly: VXIA BY CC 2.0