Divorce Insurance

[frapjap]

Yes, it now exists. Pretty interesting concept to read about. Check it out and then test yourself and post your probability of becoming divorced!

Safe Guard Insurance Company says:
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Here’s a new option for those worried they’ll end up on the wrong side of the statistics that show so many marriages ending over time: divorce insurance.

SafeGuard Guaranty Corp., an insurance start-up based in North Carolina, recently released what it’s billing as the first world’s first divorce insurance product. Here’s how its WedLock product works.

The casualty insurance is designed to provide financial assistance
in the form of cash to cover the costs of a divorce, such as legal proceedings or setting up a new apartment or house. It is sold in “units of protection.” Each unit costs $15.99 per month and provides $1,250 in coverage. So, if you bought 10 units, your initial coverage would be $12,500 and you’d be paying $15.99 per month for each of those units. In addition, every year, the company adds $250 in coverage for each unit.

Then, if you get divorced and your policy has matured (see below for the maturation rules), you would send WedLock proof of your divorce. In return, you’d receive a lump sum of cash equivalent to the amount of coverage you had purchased.

So how does the company prevent people who know they are going to get a divorce from signing up? To prevent that kind of adverse selection, the policies don’t mature until 48 months after their effective date (though people can purchase additional riders to reduce that maturity period to 36 months and to get their premiums back if they happen to divorce before the policy matures).

And what about other possible selection problems related to people with volatile relationships or a family history of divorce purchasing policies in large numbers?John A. Logan, chief executive officer of SafeGuard Guaranty, said the company has performed risk assessment and actuarial studies with this in mind. He notes that even in the worst case scenario, not all of those divorces would happen at once.

Still, it seems that people would be better served by self-insuring, i.e. putting $15.99 per month into a savings account and earning interest, rather than paying for such coverage and then possibly never getting divorced. Plus, some divorces are relatively amicable and may not cost tens of thousands of dollars.

In response to this notion, Mr. Logan said that while people could end up with more money that way, there’s always the chance that money would be squandered by a soon-to-be ex spouse. He also argues that the $250 per-year appreciation per unit is much more than the miniscule returns available today on savings accounts.

“There is nothing to stop your spouse from raiding those investments and taking it all. And then with all the money gone, you’re left with all the legal bills,” said Mr. Logan, who said the idea for the product came from his own experience with a financially painful divorce. In addition, the company’s Web site makes the argument that most people don’t have the discipline to save consistently.

Another possible downside of the coverage: the policies, which are being underwritten by surplus lines insurance company Prime Insurance Company, aren’t covered by any state guaranty funds that would honor them if the provider goes bankrupt. But Mr. Logan said the company plans to have the policies fall under such programs in the future.

To help people determine whether they need the insurance, the company has a Divorce Cost Calculator and a Divorce Probability Calculator, among other similar calculators on its site.

So how about it? Ready to pony up about $16 a month for what starts at just $1,250 of coverage?
http://bucks.blogs.nytimes.com/2010/08/ ... insurance/
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Here is their calculator for your own personalized divorce probability:
https://www.wedlockdivorceinsurance.com ... eSupport=1

Here's my result:
20 Low Probability: Congratulations. You’re amongst a demographic of people that have the second highest long term marriage success rate. What that means is that based on the factors that you indicated, and if there are no major changes in your lifestyle and that of your spouse, the chances that you will ever get divorced are less than average. Does that mean you don’t need Divorce Insurance because you’ll NEVER, EVER get divorced? No, it simply means that based on the 20 factors we know have a significant impact on the outcome of marriage, you scored well. However, people change over time and life has a way of creating unexpected turns in your path so insurance against the unexpected is always a wise choice if it’s in your budget. In any event, we wish you the best of luck!

[Looneybomber]

-18 I got a negative? Does that mean I can be married to two women and not get divorced?

Very Low Probability: Congratulations. You’re amongst a demographic of people that have the highest long term marriage success rate. What that means is that based on the factors that you indicated, and if there are no major changes in your lifestyle and that of your spouse, the chances that you will ever get divorced are far less than average. Does that mean you don’t need Divorce Insurance because you’ll NEVER, EVER get divorced? No, it simply means that based on the 20 factors we know have a significant impact on the outcome of marriage, you scored very well. However, people change over time and life has a way of creating unexpected turns in your path so insurance against the unexpected is always a wise choice if it’s in your budget. In any event, we wish you the best of luck!

[marlin29311]

What a term of endearment..."hey honey, I'm getting divorce insurance just in case - but i Love you!"

Pathetic.

Edit - I'm a -70.

[AppleBonker]

That calculator is lame. Those might be the 20 factors that are easiest to measure when it comes to divorces, but I highly doubt they are the strongest contributors.

[frapjap]

What a term of endearment..."hey honey, I'm getting divorce insurance just in case - but i Love you!"

Pathetic.

Edit - I'm a -70.

It might be more like, "Baby, I dont trust you enough to know that you aren't going to rob me blind after I bang that snaggle-toothed flap jack tittied stripper in the little 'ol by the hour hotel just south of the Midway Airport. But seriously, I do love you and all"

[frapjap]

That calculator is lame. Those might be the 20 factors that are easiest to measure when it comes to divorces, but I highly doubt they are the strongest contributors.

Have a high probability, eh?

[AppleBonker]

Lulz. -10. Which is probably also close to the probability of me getting married. I doubt there is a chick out there that could put up with me long-term.

[frapjap]

LMAO, good equilivancy.
After messing around with it, I found that the factors that increase your probability are lower income, religious beliefs, and less education. Wait...thats how America works right now! I expect this guy to be a billionaire after this is all said and done.

[ADDirishboy]

I got a -44.

I'd like to see someone who has been divorced take the quiz and see what they get, since we all seem to be in the negatives.

[AppleBonker]

I got a -44.

I'd like to see someone who has been divorced take the quiz and see what they get, since we all seem to be in the negatives.

Since ghey marriage isn't allowed in most places, this isn't a huge surprise. You're even less likely to get married than me, therefore making it less likely you'll get divorced.

[ScrapMetal]

Oh snap! I got a 98!

98 Very Strong Probability: The news is not good. You’re amongst a demographic of people that have the lowest long term marriage success rate. What that means is that based on the factors that you indicated, there are many things in your life that significantly contribute to divorce and very few, if any, factors that contribute to a long term successful marriage. Does that mean you should never get married because you’re almost guaranteed to get divorced? Certainly not! Everyone is different and your circumstances may be completely different than someone else who scored much better than you. You may end up happily married forever after, but statistically, the odds are against you. However, now you know that based on the 20 factors we know have a significant impact on the outcome of marriage, you scored among the lowest level. That means that you likely have significant obstacles to overcome to ensure that your marriage stays healthy and strong. It will take a lot of effort on your part, but knowing in advance always helps. In your case, we very STRONGLY recommend that you adjust your budget to ensure that you can cover yourself against the unexpected. In any event, we wish you the best of luck!

Ahhh, I'm not planning on getting married anyway.

[THawks]

Previously divorced here. The answer options were very vague therefore I wouldn't consider this anywhere near accurate but here ya go:

179 Very Strong Probability: The news is not good. You’re amongst a demographic of people that have the lowest long term marriage success rate. What that means is that based on the factors that you indicated, there are many things in your life that significantly contribute to divorce and very few, if any, factors that contribute to a long term successful marriage. Does that mean you should never get married because you’re almost guaranteed to get divorced? Certainly not! Everyone is different and your circumstances may be completely different than someone else who scored much better than you. You may end up happily married forever after, but statistically, the odds are against you. However, now you know that based on the 20 factors we know have a significant impact on the outcome of marriage, you scored among the lowest level. That means that you likely have significant obstacles to overcome to ensure that your marriage stays healthy and strong. It will take a lot of effort on your part, but knowing in advance always helps. In your case, we very STRONGLY recommend that you adjust your budget to ensure that you can cover yourself against the unexpected. In any event, we wish you the best of luck

[4cefed]

108

...What was the link to that insurance again?

[Dattebayo]

"Demographic of people" usually means your race, just so you know.

I wonder how they can get away with charging based on that.

[dre1507]

lol dave. i played around with it and no matter what it just kept going up and up and up. i stopped at 101. hahahaha.