Early next year, at least one company expects to start offering marriage insurance. The policy will pay out in the event of a divorce as well as in the event of a long-lasting marriage. According to the Chief Executive of the Safeguard Guaranty Corp which plans to offer the plan, it’s designed for people who want to stay married. And because divorce can be financially devastating, the insurance is designed to ease some of the burden.
The policy can be purchased starting at a dollar a day. The divorce benefit increases over time, so people who stay married longer and then divorce receive more than those who divorce after shorter periods. For a typical policy with a $100,000 face value, the couple gets $12,500 if they divorce after five years. After 24 years the payout is $64,500. But if the couple stays married and celebrates their 25th wedding anniversary they get the full $100,000.
Wow. My husband and I could have been $100,000 richer six years ago! Unfortunately, the $64,500 is still too high and could be perceived as an incentive TO divorce by some couples not getting along and needing some cash. In some cases, it might even pay for the divorce…which is probably the intent. If you had put away the dollar a day from the first day of your marriage…in some type of decent savings or investment account and not touched it, you could do better than the insurance.
The company feels it will make the money they need to be in business from client’s premiums and customers who buy policies and end up cancelling. It also speaks to the insurance company’s certainty that they don’t expect the majority of marriages that take the insurance to last until payout time. Insurance companies are in the business to make money.
Would getting $100,000 after 25 years be an incentive for you to work on your marriage if you purchased this policy on your wedding day?
Who knows? Now instead of registering at department stores for gifts they would like, couples may be listing the name of an insurance company where you can pay part of their premiums.
What do you think?