Divorce insurance is best wedding gift: Study
New York: Moms and dads who think their sons and daughters-in-law are not really meant to be together forever, can buy them a practical gift that would secure their future if the union fails— Divorce insurance.
Called WedLock, it`s an unusual form of casualty insurance that gives the policyholder a nice payout once the marriage is officially over, according to Time magazine.
The idea is a mind fruit of John Logan, a North Carolina man who saw his savings disappear when he split from his wife.
Figuring that there must be a lot of other newly impoverished people in the same financial quagmire, he devised an insurance plan that costs around 16 dollars per month for each 1,250 dollars of coverage.
As a way to prevent people from taking out divorce insurance just as they are deciding to split, they would have to pay in advance for at least four years before their policy would take effect and pay out money.
There’s an added premium of 250 dollars per unit for each additional year that the marriage lasts after the fourth year.
If it still sounds confusing, then here’s how it works: Say someone who invested in 10 units got divorced after being married for 10 years. The newly single spouse would have paid 19,188 dollars for coverage, and would get back a payment of 27,500 dollars.
"The best insurance against a painful, financially devastating divorce is to find a way to be happy in your marriage," the New York Daily News quoted relationship coach Mimi Daniel as saying.
She added: "Divorce insurance implies from the beginning that divorce is already an option."
But Logan expects his innovative insurance to become popular, either as part of a prenuptial agreement or as a gift for a bride or groom from concerned friends or relatives.
"Mom or Dad could buy this for their son or daughter without them knowing about it," he suggested.